Global ETF News Older than One Year
EPFR Global News Release-Europe and Emerging Markets Fund flows keep heading in opposite direction
November 15, 2013--The second week of November saw EPFR Global-tracked Emerging Markets Equity Funds post their biggest outflow since late June and investors pull money out of Emerging Markets Bond Funds for the 24th time in the past 25 weeks as stronger than expected 3Q13 GDP numbers from the US rekindled fears that 'tapering' of the Federal Reserve's current quantitative easing program could begin early next year.
Although testimony by Janet Yellen, the nominee to succeed Ben Bernanke as head of the Federal Reserve, bolstered earlier assumptions that QE3 will continue unchanged for some time, bolstered markets heading into the weekend it was another lackluster week in both flows and performance terms-for most fund groups. Overall, EPFR Global-tracked Equity Funds recorded a collective net inflow of $196 million during the week ending Nov. 13 versus net outflows of $1.18 billion from all Bond Funds and $2.9 billion from Money Market Funds.
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Source: EPFR
Investing in Platinum: Demand to Hit Record High in 2013-Money Morning
November 15, 2013--Industrial firms, Wall Street hedge funds, and any big money investing in platinum anxiously await Johnson Matthey's semi-annual review of the platinum industry-and they got incredibly interesting reading in the group's most recent report, released Tuesday.
In its Platinum 2013 Interim Review, Johnson Matthey said the platinum market this year is moving toward a supply and demand deficit of 605,000 ounces-the largest deficit since 1999. That’s up from a 340,000-ounce shortfall in 2012.
Source: The Wall Street Examiner
SPDR Market Commentary-Weekly Market Report
November 15, 2013--ECONOMIES: Industrial production slips in the US. Exports rise in Canada. Unemployment and inflation fall in the UK. GDP rises weakly throughout the eurozone. Growth slows in Japan. Wage inflation slows in Australia.
MARKETS: Expectations for easy money support equities and bonds. JPY weakens while EUR strengthens. Oil (Brent) jumps on Iran disappointment and Libya concerns.
NEXT WEEK PREVIEWED
SPOTLIGHT: The Bank of Japan should leave policy unchanged. Retail sales were likely weak in the US. Inflation should slow in the US and Canada. The all industry activity index likely rose in Japan.
THE WEEK IN REVIEW
US
INDUSTRIAL PRODUCTION continues to trend higherTHE WEEK IN REVIEW
US
INDUSTRIAL PRODUCTION continues to trend higher, finally
approaching its pre-recession level. Admittedly, total industrial
production slipped 0.1% in October, but it remains in a clear
uptrend. Moreover, the weakness reflected a 1.6% drop in the
volatile mining sector and a 1.1% weather-related drop in utilities.
Manufacturing output actually rose 0.3%. Within manufacturing,
durables rose 0.3%, including gains of 1.1% in primary metals and
1.5% in furniture. And non-durables also rose 0.3%, including a
gain of 1.8% in printing. Weakness was limited to motor vehicles,
which slipped 1.3%. Overall and manufacturing output rose 3.2%
and 3.3% y/y, respectively. Meanwhile, overall capacity utilization
fell two ticks to 78.1%, while manufacturing utilization rose a tick
to 76.2%. Both now appear to be trending sideways at levels
consistent with no bottleneck inflation pressures.
There was mixed news on the twin deficits. The FEDERAL BUDGET DEFICIT is narrowing sharply. The shortfall in October was just $91.6 billion compared to $120.0 billion last October. Receipts rose 7.9% year-over-year (y/y), while spending fell 4.5%. The Congressional Budget Office currently projects a shortfall of only $560 billion (3.3% of GDP) for fiscal 2014, compared with $680 billion (4.1%) in fiscal 2013. finally approaching its pre-recession level. Admittedly, total industrial production slipped 0.1% in October, but it remains in a clear uptrend. Moreover, the weakness reflected a 1.6% drop in the volatile mining sector and a 1.1% weather-related drop in utilities. Manufacturing output actually rose 0.3%. Within manufacturing, durables rose 0.3%, including gains of 1.1% in primary metals and 1.5% in furniture. And non-durables also rose 0.3%, including a gain of 1.8% in printing. Weakness was limited to motor vehicles, which slipped 1.3%. Overall and manufacturing output rose 3.2% and 3.3% y/y, respectively. Meanwhile, overall capacity utilization fell two ticks to 78.1%, while manufacturing utilization rose a tick to 76.2%. Both now appear to be trending sideways at levels consistent with no bottleneck inflation pressures. There was mixed news on the twin deficits. The FEDERAL BUDGET DEFICIT is narrowing sharply. The shortfall in October was just $91.6 billion compared to $120.0 billion last October. Receipts rose 7.9% year-over-year (y/y), while spending fell 4.5%. The Congressional Budget Office currently projects a shortfall of only $560 billion (3.3% of GDP) for fiscal 2014, compared with $680 billion (4.1%) in fiscal 2013.
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Source: SSgA
ETFS Research Note-The Increasing Attraction of the Other Precious Metals
November 15, 2013--Gold has corrected for the first time in 13 years as the US equity market has achieved new highs
The gold correction is providing an opportunity for investors to reweight and/or diversify into the more industrial precious metals, or a broader basket of precious metals
Silver, platinum and palladium,the more industrially orientated precious metals, are more likely to benefit from improving global growth
Favorable tax implications may provide additional impetus for some reallocation of assets
Moving beyond the financial crisis, the more industrial precious metals are gaining attention
Gold certainly still has its place in diversified portfolios but the other precious metals (PMs) are becoming increasing attractive. The more industrially-oriented precious metals including silver, platinum and palladium are more likely to benefit from improving global growth sentiment. Only about 10% of gold demand is used for industrial purposes compared to the opposite spectrum, palladium, where nearly 90% of total demand is for industrial purposes. About 55% of silver and about 65% of platinum are used for industrial purposes.
Source: ETF Securities Research
IEA releases Oil Market Report for November
Record production elsewhere more than offsets plunge in OPEC output; European refinery runs hit two-decade low
November 14, 2013--Record-high non-OPEC output lifted global oil supplies by 600 000 barrels per day (600 kb/d) in October to 91.8 million barrels per day (mb/d), the IEA Oil Market Report for November informs subscribers.
Year-on-year, October supplies rose 640 kb/d, as a 1.84 mb/d surge in non-OPEC liquids and OPEC NGLs offset a 1.20 mb/d plunge in OPEC crude. Total non-OPEC supply growth is forecast at 1.3 mb/d for 2013 and 1.8 mb/d for 2014.
Source: IEA (International Energy Agency )
New record high: Global ETF and ETP assets hit US$2.3 trillion in October
November 14, 2013--October marked another month of strong inflows with global ETFs/ETPs. Combining the US$32.6 billion of net inflows with positive market performance during the month, global ETF/ETP assets reached a new record high of US$2.3 trillion, according to ETFGI's October 2013 Global ETF and ETP industry insights report.
"The expectation that the Federal Reserve will maintain its QE scheme at its current size into 2014 and positive market performance encouraged investors to put net inflows of US$32.6 billion back into the market through ETFs/ETPs" according to Deborah Fuhr, Managing Partner at ETFGI.
Source: Thomson Reuters
MSCI futures to boost derivatives sector-Dt.Bank
Listing of MSCI futures boosting derivatives flow-Dt Bank
Derivatives sector faces tougher rules after 2008 crisis
November 14, 2013--The increasing use of MSCI futures products is increasing trading flows in the $630 trillion global derivatives industry, Deutsche Bank said on Thursday, in a trend which may boost revenues for exchanges and buoy a sector facing regulatory pressure.
Simon Carter, head of Deutsche Bank's European equity derivatives strategy, told an investor webcast that increasing numbers of clients were using futures from the MSCI index compiler after MSCI listed them on exchanges earlier this year.
Source: Reuters
Governments can do more to regain trust, says OECD report
November 14, 2013--The global economic crisis has undermined trust in government. Today only four out of ten citizens in OECD countries say they have confidence in their national authorities. Not surprisingly, trust declined in the countries hit hardest by the crisis, such as Ireland, Greece, Slovenia and Portugal.
But measures can be taken to rebuild trust, according to a new OECD report. The OECD's latest edition of Government at a Glance argues that governments need to be more inclusive, transparent, receptive and efficient. For that, they need to put their fiscal houses in order, deliver high quality services to their citizens and provide open and transparent data.
view the OECD Government at a Glance 2013 report
Source: OECD
Vanguard slashes costs on two passive funds
Vanguard cuts fee on Emerging Markets Stock Index tracker and Global Bond Index tracker
November 14, 2013--Vanguard Asset Management has slashed the cost of two of its tracker funds.
The passive investment manager has lowered the total expense ratio on the ££4.1bn Vanguard Emerging Markets Stock Index fund from 0.55 per cent to 0.4 per cent.
It has also lowered the total expense ratio on the Vanguard Global Bond Index tracker from 0.25 per cent to 0.2 per cent.
Source: FTAdviser
SSgA-Global ETF Snapshot-October 2013
November 14, 2013--STATE STREET GLOBAL ADVISORS HIGHLIGHTS, OCTOBER 2013
ETF Industry Detail
GLOBAL ETF LISTING REGION
The United States had over $26.6BN of inflows in the month October, increasing its year-to-date inflows to $152.9BN.
Europe experienced inflows of $4.0BN in October, increasing its year-to-date inflows to $13.5BN, while APAC had inflows of $4.8BN, increasing its year-to-date inflows to $12.7BN.
GLOBAL PERFORMANCE BY ASSET CLASS
MSCI AC World IMI increased 3.9%, while MSCI EAFE(R) gained 3.4%. Emerging markets returned 4.9%, while Emerging Markets Small Cap jumped 4.4%. US Large Cap, Mid Cap and Small Cap markets were all positive, increasing 4.6%, 3.7% and 3.6%, respectively.
The Global Aggregate gained 1.0% and the Global Treasury Ex US grew 1.1%. The US High Yield, the US Aggregate, the US Treasury and the US Corporate Bond markets were all positive in October. The US REIT market was up 4.1%. Commodities were negative, with the Dow Jones-UBS Commodity Index losing 1.5% and Gold dropping 0.2%.
GLOBAL ETF FLOWS BY ASSET CLASS
Global ETF inflows topped $35.3BN in October. Equity had inflows of $36.4BN. The equity inflows were driven by developed large cap, with $8.3BN in inflows, and developed mid cap, with $6.7BN in inflows. Fixed Income had inflows of $1.1BN, which were driven by inflows of $2.9BN into developed markets corporate high yield.
ETF Manager & Fund Detail
MANAGER DETAIL
The top three families in the Global ETF marketplace were: BlackRock, State Street and Vanguard. Collectively, they account for approximately 71% of the Global ETF market.
Source:SSgA
