Global ETF News Older than One Year
EPFR Global News Release-Flows bounce back as central bankers hit some of the right notes in early July
July 12, 2013-- With the US unemployment rate remaining 60 basis points north of the level perceived as a "go" signal for the US Federal Reserve to start scaling back its quantitative easing, investors turned some of their attention to the second quarter earnings season in early July.
Optimism about the prospects for US, Japanese and some European companies helped US and Europe Equity Funds post their biggest weekly inflows since 3Q11 and 2Q12 respectively while Japan Equity Funds extended an inflow streak stretching back to mid-January.
Overall, EPFR Global-tracked Equity Funds attracted a net $13.6 billion during the week ending July 10 with retail commitments at a 21 week high while Bond Funds recorded outflows of $2.69 billion. Money Market Funds took in $34 billion, a 27 week high, with US Money Market Funds accounting for over two-thirds of that total.
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Source: EPFR
The hidden costs of investing
July 12, 2013--Picture the scene. You've splashed out on the latest Aston Martin. But as you climb into the driver's seat you're asked to pay a fee for the key to the car and another charge for its manual.
Then, just as you're about to drive off the dealer's forecourt you're hit with yet more charges- an exit fee for leaving the garage, followed by separate charges for the leather seats and passenger door.
Source: FT.com
Kenya: NSE, Shanghai Pact to Boost Asian Investments
July 12, 2013--The Nairobi Securities Exchange (NSE) has signed a Memorandum of Understanding with China's -Shanghai Securities Exchange (SSE) to attract more investment funds from Asia.
Speaking at the announcement, Nairobi Securities Exchange Vice Chairman Bob Karina said he MoU outlines future collaboration that includes training of human capital.
Source: Allafrica.com
The European Commission and the CFTC reach a Common Path Forward on Derivatives
July 11, 2013--European Commissioner Michel Barnier and United States Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler today announced a Path Forward regarding their joint understandings on a package of measures for how to approach cross-border derivatives.
Commissioner Barnier said that "our discussions have been long and sometimes difficult, but they have always been close, continuous and collaborative talks between partners and friends."
Source: CFTC.gov
2013 Midyear SPDR(R) ETF & Investment Outlook: The Search for Yield Evolves
July 11, 2013--With the Dow Jones Industrial Average breaking 15,000 and other markets hitting record highs around the globe, categorizing the market as optimistic seems more than reasonable. But the best performing
global sector, health care, is traditionally considered one of the most defensive.1 What gives? Can the
fact that global treasuries' total returns are negative confirm this sentiment? Commodities are in the red
as well. Is this the start of the next great bull market we have all been waiting for? What, if anything, can
ETF flows tell us?
2013 ETF INDUSTRY HIGHLIGHTS
With nearly $84 billion of inflows during 2013, investors have
found comfort in equity ETFs, but not at the expense of fixed
income funds which brought in $30 billion this year. While this
may simply be a function of the continued acceptance of fixed
income ETFs by a wider investor base, flows as a percentage of
assets were slightly stronger than equities. Investors were busy
putting capital to work in those asset classes, but commodity
exposure has clearly been out of favor in 2013. Even with a sizable
outflow from commodities, the global ETF industry has seen over
$93 billion of net flows over the first five months of the year.
Digging deeper, one can see trends at play in greater detail.
Broad market equity funds have seen the greatest flows on an absolute basis with over $25 billion coming in the door. Within equities, the dividend category also added a staggering $12.6 billon, highlighting investors continued search for yield in today’s environment. Potentially even more impressive is the growth of the beta category, which includes the popular low volatility ETFs. This group saw $6.8 billion of inflows representing over 47% of 2012 assets.
visit www.spdrs.com for complete report
Source: www.spdrs.com
BP registers U.S. unit as swap dealer with regulator
July 10, 2013--Britain's BP Plc (BP.L) on Wednesday filed to register its U.S. unit as a swap dealer with U.S. authorities, a company spokesman said, becoming the first oil company to face tough oversight of its derivatives business.
Since the beginning of the year, the Commodity Futures Trading Commission requires companies to register as dealers if they trade more than $8 billion in swaps a year.
Source: Reuters
Markets: The investor's dilemma
July 10, 2013--Making more money may require resorting to the 'three dirty words of finance'.
Stocks are expensive. Bonds are expensive. What is an investor to do? Unfortunately, the only answer appears to be to invest in new and unfamiliar assets, taking new and unfamiliar risks.
Source: FT.com
SPDR University Latest Commentary-Weekly Market Report-July 5, 2013
July 10, 2013--ECONOMIES: Employment rises in the US. But, jobs slip in Canada. The Bank of England and the European Central Bank
strike dovish tones. Business confidence improves in Japan. The
Reserve Bank of Australia leaves policy rates unchanged but sees scope for more easing.
MARKETS: Equities are mixed. A good US jobs print sends US Treasury yields sharply higher. Dovish European central bankers keep European bonds better bid, except in Portugal where the governing coalition is crumbling. USD is broadly bid. AUD falls to a nearly 3-year low. Gold falls. Oil jumps on Egyptian coup and Libyan outages.
NEXT WEEK PREVIEWED
SPOTLIGHT: The Bank of Japan should leave monetary policy unchanged. The Fed minutes threaten to foment market
volatility yet again
visit www.spdrs.com for complete report
Source: www.spdrs.com
Vanguard assumes lead in ETF race
July 9, 2013--Vanguard has surged into a lead at the halfway stage of the race among exchange traded fund providers for investors cash in 2013, moving ahead of its larger rival BlackRock.
The leadership change occurred in June when the ETF industry registered its first month of net investor outflows for more than two years.
Source: FT.com
Asset management hits record level
July 9, 2013--The animal spirits are stirring again in the markets as the asset management industry grows to a record level and shrugs off some of the debilitating effects of the financial crisis.
The amount of money invested globally by asset managers has for the first time surpassed the highs before the 2007-08 crisis, according to Boston Consulting Group, the management consultants.
Source: FT.com
