Global ETF News Older than One Year
The monolith and the markets
Getting $15 trillion in assets on to a single risk-management system is a huge achievement. Is it also a worrying one?
December 7, 2013--EAST WENATCHEE, in Washington state, is known for its apples, not for its financial services. But in a data centre nestled between the orchards and hills, a cluster of 6,000 computers oversees the assets of over 170 pension funds, banks, endowments, insurance companies and others.
Whirring around the clock, the machines look at what interest-rate changes, or bank collapses, or natural disasters could mean for trillions of dollars of assets. Around the world, 17,000 traders have the computers’ assessments of these risks at their fingertips when they buy or sell assets.
Source: The Economist
BlackRock Research-ETP Landscape-US and European Equities lead flows
December 6, 2013--Highlights:
Global ETP flows were $15.8bn during November, more moderate relative to the past two months as expectations resurfaced that Fed tapering may come sooner rather than later.
November Equity flows revealed a tale of two halves with Developed Markets taking in $21.5bn while Emerging Markets experienced outflows of ($4.7bn).
Pan European flows maintained momentum gathering $3.5bn although the pace slowed from the record setting totals witnessed in the prior three months. Year-to-date the category has gathered $24.0bn in contrast to outflows of ($6.5bn) from German ETPs.
US Equities gathered $9.9bn, with investors cautious and looking to protect gains amid concerns that valuations may be stretched. Large Cap and Sector funds fared the best but were offset by Small Cap redemptions.
Source: BlackRock ETP Landscape Research
DECPG Weekly Global Economic Brief
December 6, 2013--Business confidence surveys are indicating a further improvement in global activity, supported by strengthening demand
in high income economies and China. This has translated into a rebound in exports of developing countries, and
contributed to narrowing of their trade deficits.
After a rebound in September, capital flows to developing countries weakened for a second consecutive month, reflecting concerns that the US Federal Reserve may begin to taper its quantitiative easing as the US economy strengthens.
Business surveys point to further firming in global activity.
Following earlier softness in Q3, November manufacturing Purchasing Manager’s Indices (PMIs) signal accelerating output growth. Business confidence rebounded to its highest level in 2013 in the US as drags from the October government shutdown faded, and rose to a 50-month high in Japan. Euro Area PMIs indicated a fifth consecutive month of expansion, signaling the durability of the ongoing recovery. Sentiment also remained firm in China, suggesting that the recent policy-induced rebound in growth remains intact. In turn, stronger demand in high income economies and China is bolstering sentiment and activity elsewhere. Barring Brazil and Indonesia (where domestic demand has weakened), November PMIs point to improving business conditions in Mexico, Turkey, Hungary, South Africa and India in part supported by rising external orders. Going forward, the sustained pickup in developing-country exports (14.9% 3m/3m annualized in October vs 1.7% in September) should help mitigate weaknesses in domestic demand.
Source: World Bank
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.
Visit www.epfr.com for more info
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
