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Two new db x-trackers ETFs launched on Xetra
March 18, 2011- Two new db x-trackers index funds from Deutsche Bank's ETF offering have been tradable on Xetra since Thursday.
ETF name: db x-trackers Stiftungs-ETF Stability
Asset class: Multi-asset index ETF
ISIN: IE00B4WRDS59
Total expense ratio: 0.75 percent
Distribution policy: distributing
Benchmark: db Stiftungs-ETF Stabilität Index
ETF name: db x-trackers Stiftungs-ETF Wachstum
Asset class: Multi-asset index ETF
ISIN: IE00B3Y8D011
Total expense ratio: 0.75 percent
Distribution policy: distributing
Benchmark: db Stiftungs-ETF Wachstum Index
The underlying indices for the new db x-trackers ETFs are db Stiftungs-ETF Stabilität and db Stiftungs-ETF Wachstum. For the first time, investors are able to participate in the performance of a balanced and diversified portfolio of ETFs based on equities, fixed-income securities, goods and alternative investments.
Both the stability and the growth strategy aim to generate capital growth and limit volatility by exploiting the correlations between the asset classes they contain. The weighting of the individual asset classes is determined on a quarterly basis. The minimum weighting of fixed-income securities in the db Stiftungs-ETF Stabilität Index is currently 75 percent. In the db Stiftungs-ETF Wachstum Index it is 65 percent. The proportion of equities is limited to 20 percent in the db Stiftungs-ETF Stabilität Index and 30 percent in the db Stiftungs-ETF Wachstum Index, with a minimum of 5 percent. Goods and alternative investments may have a weighting of 10 percent or 5 percent in the respective indices.
The product offering in Deutsche Börse’s XTF segment currently comprises a total of 803 exchange-listed ETFs, making it the largest offering of all European stock exchanges. This selection, together with an average monthly trading volume of around €13 billion, makes Xetra Europe’s leading trading venue for ETFs.
Source: Deutsche Bank
NYSE Euronext European ETF Activity-February 2011
March 18, 2011--Listings
February saw two new ETF listings from Amundi on Euronext Paris:
AMUNDI ETF FTSE UK DIVIDEND PLUS
AMUNDI ETF MSCI EUROPE EX UK
At the end of February, NYSE Euronext had 623 listings of 546 ETFs from 17 issuers. So far this year, a total of 61 new listings of 55 ETFs have occurred on the NYSE Euronext European market.
These ETFs cover more than 360 indices exposed to an extended range of assets and strategies (Equity, Fixed Income, Commodities, Short, Leverage, etc.).
Trading activity
In February 2011, both the Average Daily number of Trades (ADT) and the Average Daily Traded Value (ADV) figures showed continued growth:
9 287 ADT, representing an increase of 8.6% from the 8 549 ADT in February 2010.
ADV of €430.8 million, representing an increase of 4.3% from the €413.0 million in February 2010.
Assets under Management
At the end of February, the combined AUM of all ETFs listed on the NYSE Euronext European markets totaled €144.4 billion, an increase of 30.4% from the €110.8 billion at the end of February 2010.
Market Quality
The combination of the flow of 22 first-class Liquidity Providers, competitive market makers, client orders and our high capacity, low latency technology contributed to a median spread of 28.15 bps of all listed ETFs.
Visit www.euronext.com/etf for more info
Source: NYSE Euronext
XACT lists the first Swedish fixed income ETFs
March 18, 2011--XACT is the first market player to list two Swedish fixed income-based ETFs. XACT Obligation is based on a broad basket of Swedish bonds, while XACT Repo tracks the Riksbank's repo rate.
"With these two new funds, we can now offer investors a broad range of ETFs with Nordic exposure to various asset classes." Now it will also be possible to create complex investment portfolios based solely on ETFs, with all the
advantages of this type of investment in the form of flexibility and low cost," says Henrik Norén, Managing Director of XACT Fonder.
XACT Obligation tracks the Handelsbanken Sweden All Bond Tradable Index, currently based on 37 government, mortgage and municipal bonds with benchmark status.
XACT Repo tracks the trend of the Riksbank's key rate, the repo rate.
Both ETFs are being listed today on Nasdaq OMX Stockholm. XACT already has 18 ETFs listed on the Stockholm stock exchange, focusing on traditional equity indexes and commodities.
"Equities, fixed income instruments and commodities in various configurations are the components of most investment strategies. For example, in Europe today, around 20 per cent of ETF capital is invested in fixed income instruments", says Henrik Norén adding:
"Our fixed income ETFs now enable our customers to make short- and long-term fixed income investments for their portfolios efficiently at low cost."
The low asset management fees, XACT Obligation has an annual fee of 0.19 per
cent and the fee for XACT Repo is 0.14 per cent, will benefit long-term
strategic investments.
Source: XACT
EU regulator says banks to face 'credible' stress tests
March 18, 2011-- Europe's banks face more stress tests that are designed to be more "credible" than the previous assessments last year that mostly gave them a clean bill of health, EU authorities said Friday.
The eurozone's banking sector will be tested on their ability to weather slumping economic output and house prices, a rise in unemployment and a worsening in the eurozone debt crisis, the London-based European Banking Authority (EBA) said.
The new assessments, due to begin later this month, are designed to combat criticism over last year's stress tests which claimed that just seven out of 91 European banks were vulnerable to economic stress.
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Source: EUbusiness
ECB hopes new eurozone pact will mean earlier intervention
March 18, 2011-- The European Central bank hopes a pact to coordinate economic policy, to be adopted by eurozone nations next week, will mean broader surveillance and earlier intervention, a top ECB official said Friday.
"We have given our input into the design of this new (mutual surveillance) process and we hope it will be implemented as foreseen," Gertrude Tumpel-Gugerell of the ECB executive board said at a press conference in Belgrade.
"We hope to see earlier intervention if countries build up imbalances and lose competitiveness," she said.
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Source: EUbusiness
Deutsche Bank- Europe-Global Equity Index and ETF Research :Declining equity markets offset healthy weekly inflows
March 17, 2011--Investment Outlook: European equity re-allocations mark the week
The week just passed registered positive cash flows, of close to €1 billion, shared among all major ETP asset classes. Cash flows withstood a generally negative market environment, affecting both for equities as well as commodities (especially gold and crude oil). These cash flow trends do not reflect any impact from the earthquake and subsequent events that hit Japan last Friday.
In European investing, ETFs tracking the DAX index gathered €1.1 billion in the last week a trend that is in line with the activity of the prior week, when inflows into DAX ETFs totaled €547 million. Interestingly this week’s inflows into DAX ETFs coincided with the outflows of €412 million from Euro Stoxx 50 benchmarked ETFs.
European sectors and emerging markets experienced outflows of €282 million and €246 million respectively. These outflows offset the DAX inflows and overall equity flows for the week totaled a modest €259 million.
Gold and broad commodity ETFs were the pick of the week in commodities, receiving inflows of €235 million and €118 million respectively.
Sovereign and money market benchmarked ETFs contributed equally towards overall fixed income cash flows by gathering €113 million each for the week. Fixed Income ETFs received a total of € 232 million in the previous week.
Assets Under Management (AUM): Weak equity markets and fall in commodity prices cause asset decline
Most European equity benchmarks closed lower than the previous week’s levels: DAX, FTSE 100, CAC & the Euro Stoxx 50 declined by 2.8%, 2.7%, 2.3% and 2.2% respectively. This led to the European equity ETFs shedding close to €2.2 billion in market cap and to end the week at €151.4 billion. Commodity assets were flat at €39.9 billion, with positive cash inflows and falling commodity prices .Overall market declines had a negative impact on the overall ETP assets which lost €1.8 billion to end the week at €236 billion.
Commodity assets remained flat at €39.9 billion with precious metals gathering an additional €262 million mostly on account of positive cash inflows. Fixed Income ETFs experienced moderate increase of 0.8% and ended the week with €42.1 billion in assets.
On-Exchange Total Weekly Turnover: Dip in equity and fixed income volumes lead to moderate overall decline
Declines in equity and fixed income ETF trades pushed overall ETP turnover to a 3.6% drop and ended with a weekly total of €11.9 billion. Fixed income and equity ETF turnover decreased by 17.7% and 3.6% week on week. Commodity trading activity was muted with the weekly total turnover of €1.9 billion, almost at the same level as the prior week.
To request a copy of the report
Source: Deutsche Bank Global Equity Index & ETF Research
FSA publishes its Prudential Risk Outlook
March 17, 2011--The Financial Services Authority (FSA) has today published the Prudential Risk Outlook (PRO), which sets out its assessment of macro economic and financial trends as a context for its micro-prudential regulation and supervision of firms.
The analysis which lies behind the PRO helps inform how the FSA sets priorities and deploys its resources. The FSA’s Business Plan, published next week, describes those priorities and the resulting resource requirements.
Over the past two years the capital and liquidity position of the UK banks has improved significantly, increasing resilience to shocks. But the PRO describes still important risks to financial stability. It highlights in particular:
Incomplete progress in deleveraging required to create a less vulnerable system.
Progress towards improved global capital and liquidity standards and the need, as that progress is achieved, to understand possible risk transfers and migrations to other parts of the financial system.
A number of important areas of credit risk, relating in particular to vulnerable euro-zone countries, to commercial real estate, and potentially, in emerging markets facing rapid property price inflation.
view the Prudential Risk Outlook 2011
Source: FSA.uk.gov
February 2011-Euro area annual inflation up to 2.4%
EU stable at 2.8%
March 16, 2011--Euro area1 annual inflation was 2.4% in February 20112, up from 2.3% in January. A year earlier the rate was 0.8%. Monthly inflation was 0.4% in February 2011.
EU3 annual inflation was 2.8% in February 2011, unchanged compared with January. A year earlier the rate was 1.5%. Monthly inflation was 0.4% in February 2011.
These figures come from Eurostat, the statistical office of the European Union
Inflation in the EU Member States
In February 2011, the lowest annual rates were observed in Ireland (0.9%), Sweden (1.2%) and France (1.8%), and the highest in Romania (7.6%), Estonia (5.5%) and Bulgaria (4.6%). Compared with January 2011, annual inflation rose in fifteen Member States, remained stable in three and fell in eight.
The lowest 12-month averages4 up to February 2011 were registered in Ireland (-1.1%), Latvia (0.0%) and the Netherlands (1.2%), and the highest in Romania (6.5%), Greece (5.0%) and Hungary (4.4%).
Euro area
The main components with the highest annual rates in February 2011 were transport (5.7%), housing (4.9%) and alcohol & tobacco (3.5%), while the lowest annual rates were observed for clothing (-2.6%), communications (-0.4%) and recreation & culture (0.0%). Concerning the detailed sub-indices, fuels for transport (+0.62 percentage points), heating oil (+0.23), electricity (+0.11) and gas (+0.10) had the largest upward impacts on the headline rate, while garments (-0.25) and telecommunications (-0.09) had the biggest downward impacts.
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Source: Eurostat
European Parliament: Toughening Up Credit Rating Agency Rules
March 16, 2011--New rules for credit rating agencies should clarify their working methods, boost competition and reduce reliance on their ratings, said Economic and Monetary Affairs Committee MEPs on Wednesday, two months before the Commission is to table legislative proposals. MEPs also advocated creating a European credit rating foundation, and called for special attention to sovereign debt ratings.
The committee's own-initiative resolution, drafted by Wolf Klinz (ALDE, DE), did not however find unanimous support. The Socialists chose to abstain, with a view to amending the resolution before Parliament as a whole votes on it. The key points of discord were to do with methods for rating sovereign debt and with the structure of the proposed European credit rating foundation (ECRaF).
The thorny issue of sovereign debt
The resolution refrains from significantly reducing the scope for private CRAs to rate sovereign debt, as had initially been advocated by the Socialists and the GUE/NGL group. It nonetheless calls for more light to be shed on how CRAs arrive at their sovereign ratings, and says they should explain their methodologies and why their ratings deviate from the forecasts of the main international financial institutions. The resolution also notes that ratings have tended to accentuate spreads and demands special consideration of this issue.
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Source: European Parliament
NASDAQ OMX starts trading in new ETFs from SEB
March 16, 2011--NASDAQ OMX today launched trading in a new series of ETFs (Exchange Traded Funds) from SEB. The ETF portfolio from SEB is named SpotR and today (March 16) three new ETFs were listed on NASDAQ OMX Stockholm: SpotR OMXS30, SpotR Bull OMXS30 and SpotR Bear OMXS30.
All three ETFs track the OMXS30 (OMX Stockholm 30) index, which is calculated by NASDAQ OMX and comprises the 30 most actively traded companies on NASDAQ OMX Stockholm. The Bull and Bear products are leveraged ETFs that offer twice the return of the daily change in the underlying OMXS30 index. The leverage increases the chance for higher return but also the risk level and is intended primarily for experienced customers.
"We are delighted to add SEB as a customer on NASDAQ OMX's ETF market, and this launch underscores the rising interest in these products in the Nordic region," says Jenny Rosberg, Deputy President NASDAQ OMX Nordic. "During 2010 trading in NASDAQ OMX listed ETFs amounted to over SEK 200 billion in the Nordics, and we are hopeful that the market will continue to grow as we expand our offering."
Peter Dahlgren, Global Manager, Institutional Customers, SEB Asset Management, commented as follows:"SEB foresees great potential in the ETF market and through the SpotR portfolio we are complementing our total offering of financial products. Going forward, we intend to increase our offering of ETFs linked to other underlying assets in order to develop a broad portfolio aimed at both private and institutional investors."
An ETF fund is a security that tracks an index, a commodity or a basket of assets, at the same time as it is traded as a share on an exchange.
Source: NASDAQ OMX
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