Global ETF News Older than One Year
Fund flows muted as investors look ahead to Fed's December meeting and the New Year
December 6, 2013-- With better than expected US data triggering visions of less quantitative easing by the New Year, there was an appreciable 'tapering' of flows into many EPFR Global-tracked Equity and Bond Fund groups during the week ending Dec. 4.
Among the fund groups taking in less money- or posting bigger outflows - than the previous week were US, Japan, Europe, and Emerging Markets Equity Funds and Europe, Global, US, High Yield and Asia-Pacific Bond Funds.
Overall, investors pulled a net $2.03 billion out of Equity Funds, which experienced their fifth straight week of retail redemptions, and $376 million from Bond Funds while Money Market Funds, a proxy for cash, saw over $31 billion flow in. Dividend Equity Funds posted inflows for the eighth time in the past 10 weeks, but the amounts committed maintained the broad downward trend since flows peaked in late 1Q13.
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Source: EPFR
Euronext Monthly ETF Activity Report-November 2013
December 6, 2013-Highlights:
Listings
In November, we welcomed FinEx as a new issuer to our markets with 1 ETF listing. In addition, there were 6 new ETF listings from iShares.
At the end of November, Euronext's markets counted 650 listings of 560 ETFs from 17 issuers.
Trading activity
Average daily value traded on-book in November of €195.0 million, an increase of 1.4% vs October 2013, and down 7.3% vs November 2012.
Total value traded on-book amounted to €4.1 billion, a decrease of 7.5% vs October 2013, and down 11.6% vs November 2012.
Average of 6,226 on-book trades (single-counted) executed daily last month, an increase of 0.1% vs October 2013, and down 4.4% vs November 2012.
Total of €138.6 million exchanged in block trades in November, down 70.1% from the €464.1 million in October and down 79.1% vs November 2012.
Overall, block trade volume represented 3.4% of the total regulated market ETF trading activity on Euronext.
Assets Under Management (AUM)
At the end of November 2013, the combined AUM of all ETFs listed on Euronext's markets totalled €162.6 billion.
Market Quality
In November, 4 LPs took on liquidity responsibilities for 25 new LP contracts on 25 different ETFs:
Flow Traders expanded their current activity with a total of 12 new ETFs: 4 Amundi ETFs, 4 iShares ETFs, 2 Lyxor ETFs, 1 HSBC ETF and 1 Vanguard ETF.
Susquehanna took the lead on 5 of the new iShares ETFs, while also adding 2 Lyxor ETFs and 1 EasyETF to their list.
Goldenberg Hehmeyer took the lead on the new FinEx ETF and also commenced activity on 1 Lyxor ETF.
UBS took the lead on one of the new iShares ETFs.
Median spread for all listed ETFs of 24.1 bps, an enhancement of 5% vs October 2013 and down 32% vs November 2012.
23 Liquidity Providers currently active on ETFs.
ETP Service Update
ETF Liquidity Provider programme fee schedule modification: The review of the fee scheme has been carried out to further incentivise liquidity provision on ETFs and enhance market quality through tighter spreads and deeper liquidity. With this change, we aim to facilitate asset gathering on existing products and also further support the launch of new products, by encouraging more Liquidity Providers (LPs) on initial ETF product launches.
Launch of multicurrencies for Exchange Traded Products: The new facility will enable a single product to be listed and traded in different currencies on separate NYSE Euronext European venues through dedicated Euronext codes and trading symbols, but with a single ISIN code. The multi-currency listing and trading will facilitate investor access by removing currency barriers, and will offer broader investment opportunities. For more information visit http://etp.nyx.com
view US ETP Monthly Flash report
Source: NYSE Euronext
ETF and ETP Assets Have Surpassed or Are Posed to Surpass Assets Invested in Hedge Funds
December 6, 2013--A hedge fund is a fund that can take both long and short positions, use arbitrage, buy and sell undervalued securities, trade futures and options, and invest in almost any asset class or market where it sees opportunities with a goal of delivering absolute returns while minimizing risk and volatility and preserving capital.
Since the end of September 2013 hedge funds in the US have been allowed to advertise that they are looking to raise assets.
Source: NASDAQ OMX
Deutsche Bank to Shrink in Commodities as Revenue Slides
December 6, 2013--Deutsche Bank AG (DBK) is cutting about 200 commodities jobs, joining the world's largest financial firms in reducing headcount to the lowest since 2009 as prices for everything from energy to metals head for the first annual drop since the recession.
Europe's top investment bank will exit dedicated energy, agriculture, dry bulk and base metals trading and transfer its financial derivatives and precious metals desks to the fixed income and currencies division. The move will have "no material impact" on earnings, the bank said in an e-mailed statement yesterday. Total headcount in commodity units at the 10 largest banks stood at the lowest since at least 2009 as of September, according to analytics company Coalition.
Source: Bloomberg
Launch of Global Learning Exchange on Social Impact Investing
Global Learning Exchange on Social Impact Investing(GLE) launched with support of UK Cabinet Office
With an online platform, monthly virtual meetings and gatherings held alongside World Economic Forum events, the GLE will connect people, ideas and resources for sharing best practices on impact investment
Brings together public officials, investors, philanthropic and civil society organizations, international financial institutions, academics and business leaders
December 5, 2013--The World Economic Forum has launched the Global Learning Exchange on Social Impact Investing (GLE), in collaboration with the Impact Investing Policy Collaborative (IIPC) and the support of the UK Cabinet Office.
The GLE is a unique multi-stakeholder initiative that facilitates an inclusive and action-oriented dialogue on social impact investing. The work of the GLE will complement the ongoing efforts of the Social Impact Investment Task Force to drive impact investing as an important innovation for public good.
"Social impact investing-an investment approach intentionally seeking to create both financial return and positive social impact that is actively measured- is a topic that investors, social entrepreneurs and governments have engaged with through the World Economic Forum in recent years. There was a clear need to introduce impact investing to new audiences, not only among G8 countries but more broadly across the world and among diverse stakeholders. The spirit of cross-sector collaboration among stakeholders and of sharing information is not only central to the GLE but also core to the founding and operating mission of the World Economic Forum," said David Aikman, Managing Director of the World Economic Forum.
Source: WEF (World Economic Forum)
STOXX launches iSTOXX Global ESG Select 100 Index
December 5, 2013-- STOXX Limited, a leading provider of innovative, tradable and global index concepts, today introduced the iSTOXX Global ESG Select 100 Index. The new index screens the components of the STOXX Global ESG Leaders Index for high dividend paying companies which also have low volatility, thus creating a hybrid portfolio of ESG, maximum dividend and low volatility strategies.
The new index is designed to act as an underlying to exchange-traded funds and other investable products, such as structured products.
"Part of the research done by STOXX centers around the low volatility anomaly, where low volatility companies have historically produced higher returns than high volatility companies, although the opposite would have been expected,"said Hartmut Graf, chief executive officer, STOXX Limited. "Within this research, we have discovered that the historical performance of dividend indices can be significantly enhanced when adding screens for low volatility components."
Source: STOXX
UBS announces changes to Group Executive Board and Corporate Center
John Fraser to retire as CEO Global Asset Management business, retaining his position as its Chairman
Ulrich Koerner to become CEO Global Asset Management,
Tom Naratil to become Group Chief Operating Officer in addition to
current position as Group Chief Financial Officer. December 5, 2013--UBS (NYSE:UBS)(SWX:UBSN) today announced a number of changes to its senior leadership team and Corporate Center structure.
John Frase, who has been Chairman and CEO Global Asset Management since 2001, has decided to retire from his CEO role and as a member of UBS's Group Executive Board, effective 31 December 2013.
Source: UBS
World Bank Online: Foreign Investors Increasingly Cautious amidst Ongoing Global Turbulence, MIGA Finds
December 5, 2013--Foreign investors are increasingly cautious about investing in developing countries in the face of continued global economic and political turbulence,finds the World Investment and Political Risk 2013 report published by the Multilateral Investment Guarantee Agency (MIGA). A survey conducted for the report finds that macroeconomic instability and political risk rank neck-and-neck as top concerns for investors as they plan over the short and medium terms.
Despite this,the survey finds nearly half of respondents expect to increase their investments in developing countries over the next 12 months-with that number increasing to 70 percent when the horizon is extended for three years.
The fifth annual MIGA-EIU Political Risk Survey finds that breach of contract and regulatory risks once again top survey respondents' political risk concerns. Survey results show that these concerns are based on actual experience as well as sentiment.
view the the World Investment and Political Risk 2013 report
Source: World Bank
ETFGI Global Press Release: End of November 2013
December 5, 203--The combination of US$17.0 billion in net inflows and positive market performance pushed assets in the global ETF/ETP industry to a new record high of US$2.4 trillion at the end of November, according to preliminary findings from ETFGI's November 2013 Global ETF and ETP industry insights report.
Net inflows into global ETFs/ETPs in November were weaker than the US$32.6 billion of net inflows in October and the US$35.7 billion net inflows in September.
"Rising levels of uncertainty as to when and how the Federal Reserve will taper its QE scheme has contributed to the weaker inflows into ETFs/ETPs in November" according to Deborah Fuhr, Managing Partner at ETFGI.
In November 2013, ETFs/ETPs saw net inflows of US$17.0 billion. Equity ETFs/ETPs gathered the largest net inflows with US$18.2 billion, followed by fixed income ETFs/ETPs with US$1.1 billion, while commodity ETFs/ETPs experienced the largest net outflows with US$1.7 billion.
Source: ETFGI
OECD Regions at a Glance
December 5, 2013--Regions at a Glance 2013 shows how regions and cities contribute to national growth and the well-being of societies.
It updates its regular set of region-by-region indicators, examining a wide range of policies and trends and identifying those regions that are outperforming or lagging behind in their country. The report covers all 34 OECD member countries, and, where data are available, Brazil, China,Colombia, India, the Russian Federation and South Africa.
view OECD Regions at a Glance report
Source: OECD
