Global ETF News Older than One Year
Alibaba Enters Russell Global Indexes, When Will It Enter MSCI?
December 22, 2014--Russell added 102 IPOs to its global indexes for the fourth quarter of 2014 after the market close on December 19. The most notable new add is China's largest e-commerce Alibaba Group (BABA).
Alibaba is in a tricky spot. It is listed in the U.S., incorporated in the Cayman Islands and mainly operates in China. This has been a no-no for the largest global index providers. MSCI China Index only includes Chinese companies that are listed in the same time zone as their home operating base.
Source: Barron's
SSgA cutting fees for more ETFs
December 21, 2014--State Street Global Advisors has reduced fees on a further two exchange traded funds following on from the raft of price cuts it announced in October.
The US asset manager has cut the total expense ratio on its SPDR MSCI Europe ETF by 5 basis points, meaning the product now costs 25bp.
Source: FT.com
U.S. Treasury Criticizes Europe Plan for Tainted Benchmarks
December 19, 2014--A European proposal to regulate financial benchmarks that have been tainted by manipulation allegations is running into criticism from the U.S. Treasury Department.
The plan requires that other countries have equivalent oversight of indexes, which could prevent European banks and asset managers from using U.S. benchmarks, according to a counselor to Treasury Secretary Jacob J. Lew. Europe wants national governments to take responsibility for regulating financial and commodity benchmarks--something the U.S. has no plans to do.
Source: Bloomerg
$781 Billion in Global ETP AUM Based on Indices Published by S&P Dow Jones Indices
Represents Nearly 20% Increase in AUM over 2013
606 ETPs linked to S&P DJI Indices as of December 12, 2014
Augmented factor-based index family through the launch of 27 new headline factor indices
December 18, 2014--S&P Dow Jones Indices ("S&P DJI"), announced today that as of December 12, 2014, the assets under management (AUM) of exchange traded products (ETPs) based on its indices has reached $781 billion, representing a 20% increase over 2013 and a 31% market share--more than twice as much as the next index provider.
More assets are invested in ETPs (ETFs + ETNs) based upon indices calculated and published by S&P DJI than any other index provider in the world.
Source: S&P Dow Jones Indices
Review of the trading book: consultative document on remaining issues published by the Basel Committee
December 19, 2014--The Basel Committee on Banking Supervision has today issued a consultative paper on outstanding issues for its fundamental review of the trading book capital standards.
In undertaking its review, the Committee's goal is to improve trading book capital requirements and to promote consistent implementation of the rules so that they produce comparable levels of capital across jurisdictions.
Today's consultative paper sets out a limited set of revisions to the Basel Committee's proposed market risk framework, which was published in October 2013. That second consultative proposal put forward a revised market risk framework to address weaknesses in risk measurement under the current framework's internal models-based and standardised approaches.
Source: BIS
ETFs tracking FTSE China A50 Index Reach Milestones
iShares FTSE A50 China Index ETF hits $10bn AUM on tenth anniversary
CSOP FTSE China A50 ETF has over $5bn AUM
Over $24bn now tracking FTSE China Index Series
December 19, 2014--FTSE Group ("FTSE"), the global index provider, is pleased to announce that two ETFs tracking the FTSE China A50 Index have reached major milestones.
The first ETF to track the leading regional benchmark, the iShares FTSE A50 China Index ETF, has reached $10bn (USD) of assets under management (AUM) on its tenth anniversary. Similarly the CSOP FTSE China A50 ETF now has over $5bn (USD) AUM linked to the index, as at 5 December.
Source: FTSE
DECPG Weekly Economic Brief--December 19, 2014
December 19, 2014--Oil prices fell to less than $60/barrel in mid-December 2014, reaching their lowest level in five years, bringing the cumulative fall in line with that of other commodity prices compared to their early 2011 peaks.
Although low oil prices will have a marked impact on a number of oil producers, their effect on oil importers will be diffused. Yet, low oil prices offer an opportunity for energy reform.
Source: World Bank
Northern Trust Monthly Funds Market Review: Record high for UCITS and non-UCITS assets|Time for a regulatory pause, says EFAMA
December 18, 2014--This month's highlights include:
Record high for UCITS and non-UCITS assets, says EFAMA
IFIA announces record net assets in Irish funds
EFAMA: time for a regulatory pause
Passive fund assets hit US$10trn, study suggests
HK removes RMB conversion cap, opens more doors..
Source: Northern Trust
Vanguard Continues Momentum In Global ETF Market
2014 marked by asset growth, product innovation and expense reductions
December 17, 2014--Vanguard reported today that it continued to see strong adoption in 2014 of its exchange-traded funds (ETFs) in the United States, Canada, Europe, Australia, Asia and elsewhere around the world.
The firm reported global ETF cash flow of more than $75 billion at the end of November and total global ETF assets of more than $442 billion .
"Vanguard's value proposition is not confined by geographic boundaries," said Vanguard Chief Investment Officer Tim Buckley.
Source: Vanguard
Deciphering Developing Markets-The African Decade?| The snap Greek presidential elections| Africa and the current price of oil
December 16, 2014--The African Decade?
Every decade or so I'm reminded that this is going to be the decade for sub Saharan Africa, and I'm always disappointed. I have no doubt their time will come, but until then I feel there are many other countries in the developing world outside Africa that are less risky and present the investor with higher possible returns.
I would love to see the countries in sub Saharan Africa get their act together and embrace capitalism and democracy, but as an article in Saturday’s Wall Street Journal made so clear, that is not happening. So many of these countries, even those with an emerging middle class, are ruled by dictators and military men who seek to stay in power whether through sheer force, amending the constitution, or staging a coup when they are voted out of office. Yes, it's true that China has invested heavily and is very active in this commodity-rich continent. The West has really abdicated their role here, leaving the door wide open for the Chinese, who are eager to convert countries to their way of doing business and their version of capitalism. Of note are two countries, Kenya and Uganda, that are bucking the trend. These are two countries that investors would do well to watch, though access to their markets is limited. The best Africa focused ETF that has some exposure to Kenya (1.5%) is the Van Eck Market Vectors Africa Index Fund (AFK), which has a one year return of 25.65%.
Source: Peter Kohli, DMS Funds
