Global ETF News Older than One Year
STOXX Introduces Strong Quality Index Family
October 8, 2013--STOXX Limited, the market-moving provider of innovative, tradable and global index concepts, today announced the launch of the STOXX Global Strong Quality 50, STOXX Europe Strong Quality 30, STOXX Asia/Pacific Strong Quality 30 and STOXX USA Strong Quality 50 indices, which represent strong quality companies in the respective region.
The new indices are designed to act as an underlying for exchange-traded products and other investable products, and as a benchmark for actively managed funds that share the same investment philosophy. "With the launch of the STOXX Strong Quality Index family, we offer market participants a tool to access the performance of highly profitable companies that sell at attractive valuations when compared to their peers, " said Hartmut Graf, chief executive officer, STOXX Limited. "Strong quality companies tend to share the following traits: these businesses are less prone to distress, they tend to have longer cash flow durations and enjoy lower levels of operating leverage. Through a set of powerful fundamental screening metrics, our new indices offer market participants access to these companies."
Source: STOXX
Markit sends rivals message of intent
October 7, 2013--Less intrusive than a phone call, more personal than an email. For many traders instant messaging has become the main way market participants keep in contact with customers and other traders.
However, behind this most modern of communication tools lies an often controversial battle between the world’s largest investment banks and the market’s critical data providers over the cost and influence involved in providing what has become an industry utility.
Source: FT.com
Newfound Research Announces Partnership with NASDAQ OMX Global Indexes
Premier Partnership Includes Co-Branding of NASDAQ(R) NewfoundTM Indexes
October 7, 2013--Newfound Research LLC today announced that it has collaborated with The NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) to forge a new strategic partnership featuring rules-based, quantitatively enabled investment strategies created by Newfound.
NASDAQ OMX(R) and Newfound have agreed to create a suite of outcome-oriented co-branded indexes and to work jointly to promote licensing opportunities. The initial indexes will include a Risk Managed Income strategy, a Global Defensive Equity strategy, a Target Excess Yield strategy and a U.S. Equity Dynamic Long/Short strategy.
Source: Business Wire
Global food prices expected to remain volatile in coming years, warns UN official
October 7, 2013--Although global food prices have recently stabilized, they are expected to remain volatile over the next few years, the head of the United Nations Food and Agriculture Organization (FAO) said today, as a ministerial meeting on global food prices kicked off in Rome.
FAO Director-General José Graziano da Silva told the meeting, which coincided with the opening of the Committee on World Food Security, that this year's session was taking place in a less troubled climate than a year ago, when ministers came together in response to the third spike in international grain prices in five years.
Source: UN News Center
ETFS Precious Metals Weekly-Early Signs US Fiscal Impasse May Not Be Ignored Much Longer
October 7, 2013--Early signs markets starting to take default risk seriously. The gold price fell last week despite the US government shutdown, a weaker dollar, and
generally weaker than expected US economic data, indicating that short term investors continue to engage in "buy the rumor, sell the fact" gold trading activity.
Silver was the precious metals stalwart, gaining 0.2% as investor flows favoured this beaten-down hybrid metal over gold. The Golden Week holiday in China likely kept the world's largest consumer of gold away from the market, adding pressure on prices. The market calm is unlikely to last long in our view. Toward the end of last week there were tentative signs of increasing market impatience with the lack of progress, including continued selling of the US dollar and buying of perceived safe haven currencies such as the Japanese yen and Swiss franc. The cavalier attitude being taken by politicians about fiscal matters is leading to growing doubts about the ability of US politicians to come to a compromise that will avoid a sovereign default. With the debt limit likely to be breached around 17th October, markets are likely to remain volatile and short term news driven over the next few weeks. If progress on debt negotiations maintains the current stalemate much longer, gold is likely to move back into the spotlight.
Source: ETF Securities
World Economic Outlook (WEO)-Transitions and Tensions
October 7, 2013--Global growth is in low gear, and the drivers of activity are changing. These dynamics raise new policy challenges. Advanced economies are growing again but must continue financial sector repair, pursue fiscal consolidation, and spur job growth.
Emerging market economies face the dual challenges of slowing growth and tighter global financial conditions. This issue of the World Economic Outlook examines the potential spillovers from these transitions and the appropriate policy responses. Chapter 3 explores how output comovements are influenced by policy and financial shocks, growth surprises, and other linkages. Chapter 4 assesses why certain emerging market economies were able to avoid the classical boom-and-bust cycle in the face of volatile capital flows during the global financial crisis.
view the World Economic Outlook (WEO)-Transitions and Tensions -October 2013
Source: World Bank
BlackRock Research- ETP Landscape- Equity flows swell on taper delay
October 7, 2013-The Federal Reserve's surprise September no-taper announcement removed some risk of near-term volatility and took some pressure off rate-sensitive assets. As a result, stocks rallied for much of the month and investors moved heavily back into Developed Markets Equity ETPs.
Investors also began to warm up to Emerging Markets Equities.
Global ETP flows reached $35.0bn during the month- following record outflows in August-as investors again turned to the industry to execute their market views
Equity funds captured the majority of September flows with $28.7bn and year-to-date flows are now 46% higher than at the same point in 2012
The Fed's surprise decision not to taper also removed pressure from Emerging Markets Equity ETPs, leading to inflows of $5.3bn for the month-the first material inflow since January
Fixed Income ETP inflows totalled $6.6bn in September and year-to--ate flows have nearly returned to their May peak, although they remain at the lowest year-to-date level since the credit crisis began in 2008
Source: Source: BlackRock ETP Landscape Research
World Bank-World Development Report 2014: Risk Management Needs to Be Proactive, Systematic & Integrated to Have Development Impact
October 6, 2013--October 6, 2013 - In the face of social unrest, economic crises, and more frequent natural disasters, preparation and recovery efforts by governments, communities, and individuals have become increasingly essential. Effective risk management can provide both resilience to withstand adverse events and the ability to take advantage of development opportunities. It is, therefore, a critical ingredient in the fight to end poverty, says a new report from the World Bank Group.
According to the World Development Report 2014, titled-Risk and Opportunity: Managing Risk for Development, adverse shocks-above all health, weather shocks, and economic crises-play a major role in pushing households below the poverty line and keeping them there. The report concludes that managing risks responsibly and effectively can save lives, avert economic damages, prevent development setbacks, and unleash opportunities. Risk management can be a powerful instrument for development, bringing security and the means of progress to people in developing countries and beyond.
view the World Development Report 2014: 'Risk and Opportunity: Managing Risk for Development'
Source: World Bank
S&P GSCI Commodities Market Attributes September 2013
October 4, 2013--KEY HIGHLIGHTS
The GSCI was down 3.4% for the month, with three out of five sectors posting negative returns.
Despite losing 4.5% on the month, S&P GSCI Energy is up 3.8% for the year
Grains were down 2.9% in September mainly due to corn’s 8.4% loss.
The S&P GSCI Precious Metals was the weakest sector in September, returning -5.3%.
MARKET SNAPSHOT
The S&P GSCI was negative for the month, down 3.4%, with YTD returns down to -0.9%. Various factors affected commodity performance during the month, including the potential tapering of federal stimulus and global growth and economic recovery, as well as concerns regarding unrest in the Middle East and North African region.
Source: S&P Dow Jones Indices
EPFR News Release-Europe emerges as unlikely haven as US economic policy unsettles markets
October 4, 2013--After a quarter spent debating when-and how hard-the US Federal Reserve would tap the brakes on its current quantitative easing program, investors headed into 4Q13 wondering if US lawmakers are going to drive over the fiscal cliff with the throttle wide open.
Flows into fund groups dedicated to riskier assets, which began to pick up in late September after the Fed decided not to 'taper' QE3 in October, faltered again as parts of the US government began to shut down and the space under the current debt ceiling dwindled.
Based on flows into EPFR Global-tracked funds during the third quarter, a consensus of sorts is emerging from the latest bout of uncertainty. Investors now expect that, by way of deliberate action on the part of the Fed or as a consequence of political gridlock, US borrowing costs will keep rising. This will slow but not stop the current recovery in the US economy but will make life more difficult for emerging markets, especially those with above average inflation rates or current account deficits. It will also enhance the relative appeal of Japan and Europe, both of which are enjoying a period of relative stability, in both political and policy terms, as well as a pick-up in economic growth.
Between July and September combined monthly and daily data shows Europe Equity Funds posting their biggest quarterly inflow since EPFR Global started tracking them and Japan Equity Funds remaining on course to smash their full-year inflow record set in 2005.
Visit www.epfr.com for more info
Source: EPFR
