Global ETF News Older than One Year
EPFR Global News Release-Rotation towards Equity Funds stalls but EM Funds continue blistering start to 2013
February 15, 2013--Normal service, 2012 style, was resumed during the second week of February as EPFR Global-tracked Bond Funds outgained Equity Funds for the first time since early December.
Overall Bond Funds, which had a record setting year last year while Equity Funds saw over $60 billion flow out, took in $2.58 billion during the week ending February 13 versus $1.81 billion for Equity Funds. The check in the recent rotation in favor of Equity Funds did not, however, drive Retail investors back to their default position – redemptions – during most of 2012. Instead Retail investors committed fresh money for the sixth straight week, the longest such run since 1Q11.
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Source: EPFR
WGC-2012 sees gold demand hit record value level
Q4 2012 up 4% year-on-year as India, China and central banks drive demand
February 14, 2013--In value terms, gold demand in 2012 was US$236.4bn-an all-time high. Gold demand in value terms for the final quarter of the year was 6% higher year-on-year at US$66.2bn, marking the highest ever Q4 total.
Global gold demand in Q4 2012 was 1,195.9 tonnes(t), up 4% on the same quarter in 2011. In Q4 2012, the average gold price reached a record level of US$1,721.8/oz, up 1% on the previous record average price in Q3 2011. The average price during 2012 was US$1,669.0/oz, up 6% from US$1,571.5/oz in 2011,
The key findings from the report are as follows:
Whilst Indian full year demand was down 12% on the previous year, the market performed strongly in the final quarter with total demand at 261.9t, an increase of 41% on the same period last year. Both jewellery and investment demand reached their highest levels for six quarters. Demand for jewellery was up 35% year-on-year to reach 153.0t, and strong retail demand led to 108.9t of investment buying. In India the prospect of duty increases, which came in to force in January 2013, may have added to strong buying in the final quarter to beat the anticipated price rises.
Source: World Gold Council (WGC)
First Trust plans ETF push in Europe
February 14, 2013--First Trust, the eleventh-largest US exchange traded funds manager, is planning to enter the European ETF market with an initial launch of three "smart beta" ETFs expected in the first quarter of 2013.
First Trust, a privately owned US asset manager with assets of $67.8bn, will offer three of its AlphaDEX ETF range that uses an alternative weighting scheme based on a range of growth and value scores.
Source: FT.com
First Trust to launch ETFs in Europe
US investment provider to list three ETFs that combine tracking with a stock selection methodology.
February 13, 2013--US investment provider First Trust Advisors is set to launch a range of ETFs in Europe during the first quarter of 2013.
The three AlphaDEX exchange-traded funds will be launched under the Ucits IV directive and will be listed in Ireland and London, subject to regulatory approval.
Source: FT Adviser
Societe Generale - New Phase In The Transformation: Organisation Changes & Appointments
February 13, 2013--After taking a decisive step in its transformation in 2012, with major progress in building up its financial solidity, Societe Generale is entering a new phase of its Ambition SG 2015 programme to reinforce its universal banking model, centred on three pillars of excellence, and continue to adapt to the new economic and regulatory situation and the changing expectations of its clients.
The Group thus plans to reinforce its organisation by further refocusing on its core businesses and simplifying its operating structures and methods.
Organisational project: to improve commercial and operational efficiency
The new organisational structure will stand on the three core businesses on which the Group has solid franchises and a recognised expertise, and on which the Group intends to maximise synergies at the service of its clients:
a French Retail Banking pillar, which covers the current scope (Societe Generale's French Network, Credit du Nord, Boursorama).
Source: Market Watch
Structural reforms more important than ever for a strong and balanced economic recovery
February 13, 2013--Structural reforms offer governments a powerful tool to boost economic growth, create jobs and bring about a strong and balanced economic recovery, according to the OECD's latest Going for Growth report.
This year's report assesses and compares progress that countries have made on structural reforms since 2011 and takes a fresh look at reform priorities to revive growth sustainably and boost employment. It shows that the pace of reform has accelerated where it is most needed – in the European countries hardest hit by sovereign debt duress, including Greece, Ireland, Italy, Portugal and Spain.
The report draws attention to the more moderate pace of reform in other euro area countries, notably those with current account surpluses, like Germany or the Netherlands. The highest-income OECD countries, like Norway, Switzerland and the United States, and key emerging-market economies are also shown to have made more limited progress on key reforms.
view the Going for Growth 2013
Source: OECD
FSB-Progress of Financial Regulatory Reforms To G20 Ministers and Central Bank Governors
February 12, 2013--Financial market conditions have improved over recent months. Nonetheless, medium-term downside risks remain, given weak growth prospects and high levels of public and private sector debt in many economies.
The recent improvement in financial market conditions owes much to central bank actions, in particular, the accommodative monetary policy aimed at stimulating the economic recovery. As a consequence, market participants’ appetite for risk has increased, but this has not yet translated into a robust recovery in real investment.
The beginning of the return of risk appetite to financial markets – while intended and welcome – raises a number of issues. First, market participants and authorities need to be on guard against mispricing of risk and valuations of assets. Second, the importance of timely completion of the reforms to over-the-counter (OTC) derivatives markets and the shadow banking system has increased. Third, historically low interest rates in many countries pose challenges for institutional investors with long-dated liabilities and may leave market participants more vulnerable to unanticipated movements in the yield curve. Financial institutions and supervisors should continue to assess the resilience of the financial system through regular stress testing, notably of credit and interest rate risk, and complete the process of balance-sheet repair.
Source: FSB
FSB completes thematic peer review on risk governance
February 12, 2013--The Financial Stability Board (FSB) published today a thematic peer review on risk governance.
The report takes stock of risk governance practices at both national authorities and firms, notes progress made since the financial crisis, identifies sound practices and offers recommendations to support further improvements. The recent global financial crisis exposed a number of risk governance weaknesses in major financial institutions, relating to the roles and responsibilities of corporate boards of directors (the “board”), the firm-wide risk management function, and the independent assessment of risk governance. Without the appropriate checks and balances provided by the board and these functions, a culture of excessive risk-taking and leverage was allowed to permeate in many of these firms
view the Thematic Review on Risk Governance-Peer Review Report
Source: Financial Stability Board (FSB)
Barclays announces the outcome of its strategic review and sets out commitments for 2015
Fbruary 12, 2013--Antony Jenkins, Barclays PLC ("Barclays"), Group Chief Executive said today: "Barclays is changing. We intend to change what Barclays does and how we do it and have set out clear commitments against which our progress can be measured. Our goal is to make Barclays the 'Go-To' bank for all our stakeholders.
The plan that we set out today is critical to delivering that goal.
Our plan is built on a rigorous review of 75 distinct business units to determine not only their ability to generate an appropriate and sustainable return on equity, but also their strategic attractiveness, including their impact on Barclays reputation. We expect to make good progress towards our financial commitments by 2014 and deliver them fully during 2015.
Source: Barclays
ETF Securities- Precious Metals Weekly: China Car Sales Hit Record Driving Platinum and Palladium Prices to 17-Month Highs
February 11, 2013--Platinum group metals (PGMs) prices hit 17-month highs as Chinese car sales jump 46% in January. Multiple factors combined to drive PGM prices to multi-year highs last week. On-going signs of strength from the China's economy, together with persistent supply shortages, are providing strong price support for PGM prices, with platinum rising 2.9% and palladium 2.6% mid-last week, before easing at the end of the week.
More than two million vehicles were sold in China in January, a record monthly high, according to the China Association of Automobile Manufacturers. Chinese auto-catalyst demand alone accounts for 13% of global palladium demand. Declines in South African production, resulting from both infrastructure and labour constraints, could exacerbate the current 2013 deficit if they persist. While the fundamental picture remains strongly constructive for the sector, a sharp build-up in net long futures positions (see page 4) remains a tactical price risk in the near-term.
Russian palladium exports to Switzerland in 2012 drop 72% to lowest level in 22 years, exacerbating shortage. Swiss imports of palladium from Russia, a key barometer of Russian state sales, appear to be confirming a long-held industry suspicion that Russian state stockpiles are nearing exhaustion. Russian stockpiles have contributed around 13% of global supply on average over the past 10 years. Current market expectations centre on a looming 10% palladium supply shortfall in 2013, but this could widen if Russian state supply is withdrawn from the market altogether.
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Source: ETF Securities
