Global ETF News Older than One Year
EPFR Global News Release-Outflows from EM Equity and Bond Funds gather pace as Fed 'tapering' decision looms
August 30, 2013--Redemptions from EPFR Global-tracked Emerging Markets Equity and Bond Funds hit nine week highs heading into September as the prospect of less accommodative US monetary policy pummeled equity indexes and currencies from Jakarta to Istanbul.
With the short-term outlook for the US also clouded by looming clashes over federal spending and the debt ceiling, investors again looked to Europe as they adjusted their portfolios: Europe Equity Funds took in another $1.3 billion as they extended their longest inflow streak since 4Q06.
Overall, the week ending August 28 saw a net $4.8 billion pulled out of all Equity Funds and another $7.1 billion redeemed from Bond Funds. Net flows into Money Market Funds were a modest $1.7 billion as commitments to US funds were offset by redemptions from Europe and Japan Money Market Funds.
The latest outflows from Emerging Markets Equity Funds saw a number of country fund groups hit hard. Philippines and Mexico Equity Funds both set weekly outflow records, Korea Equity Funds had their second worst week year-to-date and redemptions from Turkey Equity Funds hit an 11 week high. But higher oil prices trumped regional tensions for investors looking at the Middle East as commitments to Middle East Regional Equity Funds hit a 17 week high.
Visit www.epfr.com for more info.
Source: EPFR
STOXX Changes Composition Of Blue-Chip Indices
Regular Annual Review To Be Effective On September 23, 2013
August 30, 2013--STOXX Limited, the market- moving provider of innovative, tradable and
global index concepts, today
announced the results of the regular annual review of the STOXX Blue-Chip
Indices, among them the STOXX Europe 50, EURO STOXX 50, STOXX Nordic 30 and
STOXX EU Enlarged 15 indices;
as well as the results of the second semi-annual review of the
STOXX Eastern Europe 50 Index.
All changes will be effective with the open of European markets on September 23 , 2013
Source: STOXX
ETFS Research Update-Physical Gold Shortage Drives Gold Price Higher
August 30, 2013--Summary:London Bullion Market Association (LBMA) gold forward offered rates (GOFO) rates have now been negative for over 7 weeks.
While GOFO rates have been negative during a few exceptional periods in the past, this is the first time they have been negative for a prolonged period, indicating tightness in the physical market for gold traded on the LBMA. Strong demand from Asia and developing countries' central banks, coupled with reduced supply from gold recycling and diminished mining supply, appear to have substantially tightened the market.
Source: ETF Securities Research
China-Africa Economic and Trade Cooperation (2013)
August 29, 2013--The Information Office of the State Council, or China's Cabinet, published a white paper on "China-Africa Economic and Trade Cooperation" on Thursday.
view the China-Africa Economic and Trade Cooperation (2013) white paper
Source: Information Office of the State Council
FSB publishes policy recommendations to strengthen oversight and regulation of shadow banking
August 29, 2013--The FSB published on 29 August 2013 policy recommendations to strengthen the oversight and regulation of the shadow banking system.
The documents published today comprise: (i) An Overview of Policy Recommendations; (ii) Policy Framework for Addressing Shadow Banking Risks in Securities Lending and Repos; and (iii) Policy Framework for Strengthening Oversight and Regulation of Shadow Banking Entities.
Source: FSB (Financial Stability Board)
FSB publishes progress report and interim peer review report on credit rating agency ratings
August 29, 2013--The FSB published on 29 August 2013 a summary progress report on reducing reliance on, and strengthening the oversight of, credit rating agencies (CRAs).
The progress report is accompanied by the interim peer review report on national implementation of the FSB Principles for Reducing Reliance on Credit Rating Agency (CRA) Ratings .
Source: FSB (Financial Stability Board)
FSB publishes a progress report on the oversight and governance framework for financial benchmark reform
August 29, 2013--The FSB has established an Official Sector Steering Group of regulators and central banks to coordinate reviews of existing interest rate benchmarks and to guide the work of a Market Participants Group which will examine the feasiblity and viability of adopting additional reference rates and potential transition issues.
The report describes the initial progress and outlines the future work programme.
Source: FSB (Financial Stability Board)
Update on financial regulatory factors affecting the supply of long-term
Report to G20 Finance Ministers and Central Bank Governors
August 29, 2013--Introduction
G20 Finance Ministers and Central Bank Governors have recently emphasised the importance of long-term financing for investment, including in infrastructure, in enhancing economic
growth and job creation.
At the meeting of the Ministers and Governors in November 2012, the FSB was asked to undertake diagnostic work, together with other relevant international organisations (IOs), to assess factors affecting long-term (LT) investment financing. In February 2013, the FSB reported1 initial findings to the G20 on the financial regulatory factors affecting the availability of LT investment finance, as part of broader diagnostic work undertaken by IOs.
Source: FSB (Financial Stability Board)
Investors Favored More Dynamic, Value-Oriented Stocks In An Emerging European Market According To Russell Indexes
August 29, 2013--As Europe appears to turn a corner economically, experts at Russell Investments believe European equities may provide better value versus other non-U.S. developed markets.
In addition, dynamic and deep value-oriented investors may have found more investment opportunity in Europe in recent months, according to the Russell Indexes.
Since the beginning of the third quarter as of August 26, the Russell Developed Europe Dynamic Index has outperformed the Russell Developed Europe Defensive Index by more than 6% and has outperformed the Russell Developed Europe Index by more than 3.5%.
And for the same time period, the Russell Developed Europe Value Index has outperformed the Russell Developed Europe Growth Index by more than 3% and has outperformed the Russell Developed Europe Index by more than 1.5%.
Source: Russell Investments
In Defence of Short and Leveraged ETFs
August 29, 2013--Boost response in defence of Short and Leveraged ETFs following the paper published by the Fed's Mr Tuzun.
Short and Leveraged ETFs are market access tools and do not drive the market
Circa $50bn of global assets under management in Short and Leveraged ETFs is inconsequential compared to $2 trillion in ETFs which is less than around 10% of global mutual fund assets
Investors who use Short and Leverage ETFs often use them to hedge their portfolios, therefore helping prevent short term sell offs
Other research finds no evidence to back Mr Tuzun's conclusions
Short and Leveraged ETFs have significant benefits compared to other forms of leveraged trading
Boost ETP, the award winning and independent exchange traded product ("ETP") provider, which specialises in Short and Leveraged ("S&L") ETPs, feels compelled to enter the debate started by Tugkan Tuzun's Fed paper published in July 2013. Boost feels that there is need for more clarity and reasoned debate around the conclusions of Mr. Tuzun's analysis.
Source: BOOST
