Global ETF News Older than One Year
Pimco: 'urgent' need to build equity arm
March 9, 2014--Pimco's newly appointed chief executive has admitted there is an "urgency" for the world's largest bond house to diversify its business into equities after a year of painful outflows from its fixed income funds.
The bond specialist, which is being battered in the media over what has now become a very public spat between Bill Gross, Pimco's founder, and its departing chief executive, Mohamed El-Erian, haemorrhaged €35.6bn of net cash in the fourth quarter of last year.
Source: FT.com
BIS March 2014 Quarterly Review: Emerging economies respond to market pressure
March 9, 2014--The recent performance of emerging market currencies has reflected the success of central banks in defending exchange rates as well as the political uncertainty in a number of countries. External imbalances, inflation and domestic credit growth have played a much smaller role than during the depreciations in May and June last year.
Cross-border interbank lending fell at an even faster rate in the third quarter of 2013. Banks headquartered in the euro area account for most of the decline after the financial crisis of 2007-09, and Swiss banks for much of the remainder.
The stock of debt securities reached an estimated $100 trillion in mid-2013 on heavy post-crisis issuance by governments and non-financial corporations. Foreign investors hold a smaller share of debt securities than previously, suggesting that the globalisation of portfolios may have gone partially into reverse post-crisis. But the retreat could be temporary.
view the BIS Quarterly Review March 2014-International banking and financial market developments
Source: BIS
Vanguard climbs ETF league table
March 7, 2014--Vanguard has overtaken State Street Global Advisors' SPDR exchange-traded fund unit as the second largest ETF provider in the US for the first time.
The Pennsylvania-based fund manager edged out SPDR with $345.5 billion in ETF assets at the end of February, according to consultancy ETFGI, compared with the Boston-based firm's $344.6 billion
Source: Financial News
DECPG Weekly Brief
March 7, 2014--Gross capital flows to developing countries declined sharply in February 2014 to a five-year low, reflecting the recent
bout of market volatility and a downward correction from exceptionally high volumes of international bond issuances in
January. Mirroring tighter global financing conditions and weaker domestic demand in some cases, real domestic credit
growth decelerated in most developing regions towards the end of 2013.
The reaction of global commodity markets to escalating tensions between Ukraine and Russia has been relatively muted, given the importance of these two countries in wheat, oil and gas markets.
Capital flows to developing countries tumbled in February, with all segments of the market posting sharp declines. Gross capital flows (international bond issuance, cross-border syndicated bank loans, and equity placements) amounted to only $13.9 billion in February, the lowest monthly level since April 2009. After a record $40 billion issuance in January, bond flows dropped sharply to $7.7 billion in February amid increased financial market volatility and on the back of some seasonal effects. Equity issuance remained weak at $2.1 billion as the Chinese IPO rally that started in December faded out. Syndicated bank lending stood at $8.8 billion since January 1, its lowest level since 2005, and down 69% from a year earlier. The decline in global syndicated loan activity is relatively broadly-based, but more marked in Emerging Europe and Sub-Saharan Africa.
Both regions failed to post a single syndicated loan deal this year. Combining January and February data, gross capital flows to developing countries are 30 percent lower than the same period last year-their weakest level since 2010.
Source: World Bank
Ex-US active funds drive industry flows
March 7, 2014--The top 15 active houses worldwide attracted over half of industry inflows last year, proving size matters.
Their growth was driven by income funds, equity, multi-asset and alternatives.
Source: Asian Investor
NASDAQ OMX Monthly Index Performance Report- as of 2/28/14
March 6, 2014--The NASDAQ OMX Index Monthly Performance Report (as of 02/28/14)is now available.
Source: NASDAQ OMX
According to ETFGI: Global ETF and ETP assets reached US$2.44 trillion, a new record high, at the end of February 2014.
March 6, 2014--Flows into ETFs and ETPs listed globally rebounded in February gathering net inflows of US$29.0 billion which, when combined with the positive market performance in the month, pushed assets in the global ETF/ETP industry to a new record high of US$2.44 trillion, according to preliminary findings from ETFGI's February Global ETF and ETP industry insights report.
The Global ETF/ETP industry has 5,183 ETFs/ETPs, with 10,210 listings, from 219 providers on 59 exchanges.
"Positive comments from the Fed indicating that the US economy continues to brighten, the S&P 500 ending February with a record close of 1859 and signs of a wider global recovery in equities seems to have caused investors to come out of their winter hibernation after the winter storms and put net inflows of US$29.0 billion into ETFs/ETPs in February." according to Deborah Fuhr, Managing Partner at ETFGI.
Dissecting the overall net inflows we find that fixed income ETFs/ETPs gathered US$16.8 Bn-the largest net inflows-followed by equity ETFs/ETPs with US$10.2 Bn. Commodity ETFs/ETPs saw net inflows of US$870 Mn.
Source: ETFGI
Intraday Liquidity Becomes Critical For Front-Office Trading
March 5, 2014--SmartStream Technologies, the financial Transaction Lifecycle Management specialist, today announced the importance of intraday liquidity in the trading environment, following the release of its TLM Cash and Liquidity Management 2.5 solution and discussions with user groups in London.
The key consensus was the focus of intraday liquidity and its impact on return on investment.
Source: SmartStream Technologies
State Street Global Exchange Expands Global Futures Capabilities to Help Clients Access Futures Directly and Manage Complexity
Advanced Algorithms, Analytics and Consulting Offer Actionable Insights for Buy-Side Traders
March 5, 2014--
March 5, 2014--State Street Global Exchange today announced the expansion of its futures commission merchant (FCM) solution to include futures execution. State Street's Futures Commission Merchant(FCM) solution includes support across the entire trade lifecycle through execution, clearing, collateral management,
valuation and risk and analytics for OTC derivatives and futures.
The futures execution capabilities include a global team of experienced traders, direct market access (DMA) and the use of State Street algorithms and analytics with seamless integration into existing workflows. The execution desk provides a global rolling order book, cross-product coverage from a coordinated sales team and access to more than 30 global exchanges and third-party platforms. Execution consulting and cross-asset trade flow and analysis, trade ideas and opportunities, market commentary, analytics and proprietary research are offered by the execution desk and through State Street Associates, State Street Global Exchange's leading partnership with academia.
Source: State Street Corporation
IMF Working paper-Tracking Global Demand for Emerging Market Sovereign Debt
March 5, 2014--Summary: This paper proposes an approach to track US$1 trillion of emerging market government debt held by foreign investors in local and hard currency,based on a similar approach that was used for advanced economies (Arslanalp and Tsuda,2012). The estimates are constructed on a quarterly basis from 2004 to mid-2013 and are available along with the paper in an online dataset.
We estimate that about half a trillion dollars of foreign flows went into emerging market government debt during 2010-12,mostly coming from foreign asset managers. Foreign central bank holdings have risen as well,but remain concentrated in a few countries: Brazil,China,Indonesia,Poland,Malaysia,Mexico,and South Africa. We also find that foreign investor flows to emerging markets were less differentiated during 2010-12 against the background of near-zero interest rates in advanced economies. The paper extends some of the indicators proposed in our earlier paper to show how the investor base data can be used to assess countries' sensitivity to external funding shocks and to track foreign investors' exposures to different markets within a global benchmark portfolio.
view the IMF Working paper-Tracking Global Demand for Emerging Market Sovereign Debt
Source: IMF
