ETF Securities-Precious Metals Monitor--September 2017 Key Highlight
October 6, 2017--Gold: Strong seasonal demand needed to complement investor driven rally
Gold is on pace for another strong year. The current rally, however, has been largely dependent on investment flows driven by a low rate, weak dollar, and high uncertainty environment. Meanwhile, jewelry, the largest segment of gold demand, remains soft particularly in the key markets of India and China. The fourth quarter typically sees strong seasonal demand for gold jewelry stemming from the Indian wedding season, festivals, and Western holiday shopping.
In order for gold to remain on strong footing, a pick-up in jewelry demand heading into year-end is needed as a foundation. Otherwise, gold may run the risk of relying on volatile investor sentiment to push higher.
Source: etfsecurities.com
DECPG Global Weekly
October 6, 2017--Taking Stock
U.S. nonfarm employment fell in September. U.S. nonfarm payrolls declined by 33,000 in September, the first negative reading in seven years, largely reflecting the effects of hurricanes Harvey and Irma.
Nonfarm payroll growth for August was revised up from 156,000 to 169,000. The unemployment rate fell 0.2 percentage point to 4.2 percent in September (Figure 1), the lowest since 2001, while labor force participation rate rose to 63.1 percent from 62.9 percent in August.
Meanwhile, average private hourly earnings increased 2.9 percent (y/y) in September, up from 2.7 percent in August.
Source: World Bank
Fundstrat launches five indexes to track bitcoin and other digital currencies
October 6, 2017--Fundstrat co-founder Thomas Lee rolls out five indexes for tracking digital currencies.
The relative performance of the digital currencies within the indexes indicates that since June, momentum from speculative investors has slowed.
Some digital currency enthusiasts have already launched their own indexes to track the cryptocurrencies.
Source: CNBC.com
Ultumus-Debt, Debt and more Debt
October 6, 2017--USA
Columbia lists complex debt ETF with truly global ambitions
Columbia Threadneedle is listing a multi-strategy fixed-income ETF that sets a new frontier for complexity in debt-tracking ETFs.
Australia
Vanguard also lists global debt ETF, but much more straightforward
Vanguard will be listing a new fixed income ETF on the Australian Stock Exchange this month, the Vanguard Global Aggregate Bond Index Fund Hedged ETF (VBND).
This should facilitate the implementation of the NSFR, which is expected to begin on 1 January 2018.
The NSFR assigns a 20% "required stable funding" factor to derivative liabilities. The Committee has agreed that, at national discretion, jurisdictions may lower the value of this factor, with a floor of 5%.P>view more
Source: BIS
Institutional ETF Trading Survey-Commissioned by Jane Street
view the Global trends in institutional ETF trading
Risk.net Q4 2017 Survey report
Source: Jane Street
CoinShares, the 'BlackRock iShares Equivalent' of Crypto-Finance, Launches
The team behind XBT Provider, issuer of two Bitcoin Exchange Traded Notes (ETNs), and GABI, the first regulated Bitcoin hedge fund, has combined those two entities to launch CoinShares, a product that has $300 million in crypto-assets.
Source: thestreet.com
Three in ten institutional investors make more than 50 ETF trades a month-study
The study found that around 30 per cent of institutions traded ETFs more than 50 times a month but that proportion rose to 42 per cent in Europe. By contrast, just over half of Asian fund managers say they trade ETFs 10 or fewer times a month. US investors also used them as a way to shift their asset allocations, it said.
Source: FT.com
WGC-Gold-backed ETF holdings increased by 22.4t in September
Asia funds lost 1.7t (-$57mn, -1.7% AUM) with most of the region's gold-backed funds losing assets Individual fund flows
Two Swiss-related funds had meaningful gains: ETFS Physical Swiss Gold 0.9t (+$44mn, +8.1% AUM, iShares Gold CHF Hedged ETF 0.6t (+$29mn, +8.2% AUM)
Source: World Gold Council (WGC)
October 5, 2017--Commissioned by Jane Street, Risk.net's institutional trading survey provides insight into how over 200 global institutional investors are trading ETFs, the counterparties they work with, and how they evaluate liquidity.
October 5, 2017--Bitcoin is getting even more mainstream. The team behind XBT Provider, issuer of two Bitcoin Exchange Traded Notes (ETNs), and GABI, the first regulated Bitcoin hedge fund, has combined those two entities to launch CoinShares, a product that has $300 million in crypto-assets.
October 5, 2017--Big investors in Europe are executing as many as 50 exchange-traded fund (ETF) deals a month, according to a wide-ranging survey of global ETF trading trends.
October 4, 2017--Regional fund flows
In North America investors added 36.0 tonnes(t) (+$2.5bn, +4.7% AUM) of gold through funds listed in the region
There were outflows in Europe worth 12.0t (-$229mn, -0.57% AUM) over the month
SPDR(R) Gold Shares led flows in September accounting for 60% of gross global inflows while iShares Gold Trust added 5.2% to its AUM
Gold Bullion Securities, listed in London, lost 8.0t (-$312mn,-7.3% AUM)
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