Global ETF News Older than One Year
Global pension fund assets reach new highs
DC assets predicted to overtake DB assets in the next few years
February 9, 2015--Global institutional pension fund assets in the 16 major markets grew by over 6% during 2014 (compared to around 10% in 2013) to reach a new high of US$36 trillion, according to Towers Watson's Global Pension Assets Study released today.
The growth is the continuation of a trend which started in 2009 when assets grew 18%, and in sharp contrast to a 22% fall during 2008 when assets fell to around US$20 trillion. Global pension fund assets have now grown at 6% on average per annum (in USD) since 2004.
Source: Towers Watson
Banks Prepare to Charge Fees for Trades at Benchmark Currency Rates
February 9, 2015--Some of the world's biggest currency dealers are preparing to charge clients for trades at benchmark rates, according to people with knowledge of the matter.
Barclays Plc, Deutsche Bank AG, and JPMorgan Chase & Co. have told customers in recent weeks they may start charging fees for trades executed at the WM/Reuters rates, including the 4 p.m.
Source: Bloomberg
BIS publishes indicators of global liquidity and analysis of oil market developments
February 7, 2015--The BIS today released an updated set of indicators of global liquidity, which are intended as measures of the ease of financing in global financial markets.
Alongside the global liquidity indicators, the BIS also published a preliminary analysis of the oil-debt nexus, exploring recent developments in oil markets, and noting that:
recent changes in production and consumption are not enough by themselves to explain the extent and timing of the drop in oil prices. One should consider the nature of crude oil as a financial asset, and consequently its sensitivity to expectations and financing constraints;
view the BIS Global liquidity: selected indicators1 report
Source: BIS
DECPG Global Weekly-February 06,2015
February 6, 2015--Taking Stock
Global bond markets recorded strong gains. The global bond markets started the year on a strong note, with Bank of
America Merrill Lynch's global bond index posting a record 1.7 percent gain in January.
Gains were particularly strong in low-risk government debt as stalling global growth and new quantitative easing by the European Central Bank created demand for safe-haven assets.
U.S. and U.K. government securities have gained 2.6 percent and 3.7 percent this month, respectively, remaining among the best performers worldwide . Global investors' appetite for low-risk corporate debt was also strong, with companies across the world selling $311 billion of bonds in January and average borrowing costs sliding to 2.4 percent, the lowest level since May 2012.
Greek markets tumbled on the ECB move. Greece’s bond and stock markets tumbled on Thursday after the European Central Bank restricted access to funding lines to Greek lenders. By cutting off Greek banks' ability to use (non investment grade) government's bonds as a collateral, the ECB increased the likelihood that deposits withdrawals from banks will accelerate.
Source: World Bank
ETF 20/20 Trends: Swiss 'Shockolates' & The Eurozone Deflation Threat
February 6, 2015--Key Highlights
Our monthly 'ETF 20/20' report summarizes recent Exchange Traded Fund (ETF) trends in the US, using data from the First Bridge global ETF database.
US ETF assets fell inJan 2015 to $1.984T, due to the combination of a market decline and net outflows in US equities
Preliminary estimates from Eurostat indicate that price declines in the Eurozone accelerated in Jan 2015, raising the likelihood of further monetary stimulus
January 2015 was a month of significant volatility in currency ETFs. The Swiss Franc appreciated dramatically against the Euro and USD on Jan 15, when the Swiss National Bank abandoned its policy of pegging the Franc to the Euro.
The year started with a rare month to month decline in the number of US listed ETFs, with 23 closures and 13 launches.
Low volatility outperformed other US equity strategies both in January and the trailing 12 months.
Indian & Chinese equity and long duration bond ETFs were the best performing, while Russian, Greek and energy ETFs were the worst performing in the trailing 12 months.
Source: First Bridge Data
SPDR University Weekly Market Report-
February 6, 2015-ECONOMIES: Manufacturing is lackluster around the G7. Employment rises robustly in the US. Unemployment falls in Canada. The Bank of England leaves policy unchanged. Factory orders jump in Germany. Wage inflation appears to be accelerating modestly in
Japan. The Reserve Bank of Australia cuts its policy rate.
MARKETS: Risk appetites seem to get a boost from the bounce in oil prices. Equities and G7 government bond yields are mostly higher. US and UK yields jump. USD is broadly weaker.
NEXT WEEK PREVIEWED
SPOTLIGHT: Another weak headline is expected for retail sales in the US. GDP likely posts at best anemic gains for Germany, France, Italy and the overall eurozone. Home prices are expected to post another solid gain in Australia.
ECONOMIES: Manufacturing is lackluster around the G7. Employment rises robustly in the US. Unemployment falls in Canada. The Bank of England leaves policy unchanged. Factory orders jump in Germany. Wage inflation appears to be accelerating modestly in Japan. The Reserve Bank of Australia cuts its policy rate.
Source: SPDR University
FTSE Expands Infrastructure Index Series With Two Capped Indices
February 5, 2015--FTSE Group, the global index provider, has announced the expansion of its established FTSE Infrastructure Index Series with the launch of two capped indices to complement the FTSE Core Infrastructure Indices: FTSE Global Core Infrastructure Capped 50/50 Index and FTSE Developed Core Infrastructure Capped 50/50 Index.
The expansion of the index series is in response to increased interest in this relatively young asset class, led by institutional investors diversifying into real assets such as infrastructure and real estate.
Source: Ftse Global Markets
BIS-Credit risk management across sectors-report released by the Joint Forum
February 5, 2015--Today the Joint Forum released its report Developments in credit risk management across sectors: current practices and recommendations.
The Joint Forum surveyed supervisors and firms in the banking, securities and insurance sectors globally in order to understand the current state of credit risk management given the significant market and regulatory changes since the 2008 financial crisis. Fifteen supervisors and 23 firms from Europe, North America and Asia responded to the survey.
Source: BIS
FTSEangle.com: Welcome to Global Indices and Global Insights from FTSE
February 5, 2015--One of the fastest growing areas of passive investing focuses on investment products designed using alternatively weighted and factor exposure indices-sometimes called ˝smart beta-that differ in essential ways from traditional capitalization-weighting.
This innovative new generation of indices come in a wide range of different types and styles with often subtle but important differences that offer users alternative index approaches to the control of risk and access to returns.
Source: FTSE
BATS Global Markets January 2015 Update: Record U.S. Options Market Share of 8.8%; Reports 24.2% European Equities Market Share; Completes Direct Edge Integration
February 4, 2015--BATS Global Markets (BATS) today reported January volume, market share, and monthly highlights including record market share for BATS Options of 8.8% and one of its strongest months on record in European equities with 24.2% market share.
The 8.8% record for BATS Options in January was up from 6.3% in December 2014 and 3.3% one year ago. BATS Options also set a one-day market share record of 10.4% on January 28. In January, BATS Options reported 10 days where market share topped 9.0%, a new record for the growing business.
Source: BATS Global Markets, Inc.
