Global ETF News Older than One Year
BlackRock-ETP Research Strongest 2-month start for Equity ETPs
March 6, 2013--February flows of $10.6bn ensured the strongest 2-month start on record for Equities
Following a strong risk rally in January, global ETP flows moderated in February. Developed Market Equity ETPs continued to exhibit strong momentum in February, gathering $13.0bn.
This included $7.3bn in non-US exposures. Sector funds added $4.7bn led by Real Estate with $1.5bn, under the backdrop of improving economic indicators in the US housing markets.
Within Fixed Income, Short Maturity Fixed Income ETPs (including Ultra-Short Term, Short-Term and Floating Rate) saw inflows of $4.0bn while all other maturities saw collective outflows of ($1.3bn) in February.
Gold ETP outflows totaled ($5.6bn) and have now reached ($6.8bn) YTD.
Sources: BlackRock Investment Institute, Bloomberg.
Source: BlackRock-ETP Research
ETFGI-11.4 billion US dollars net inflows into global ETFs and ETPs in February
March 6, 2013--In February 2013, Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) globally had net inflows of $11.4 billion, according to new research published in the latest ETFGI Global ETF and ETP industry insights.
ETFGI won the Best ETF Research award in 2012 in the ETF Express awards announced on February 28th in London.
Equity ETFs and ETPs gathered the largest net inflows with $11.6 billion, followed by fixed income ETFs and ETPs with $1.3 billion, and active ETFs and ETPs with $1.1 billion, while commodity ETFs and ETPs experienced net outflows with $4.9 billion.
Year to date through end of February 2013, ETFs and ETPs have seen net inflows of $49.1 billion. Equity ETFs and ETPs gathered the largest net inflows year to date with $45.1 billion, followed by fixed income ETFs and ETPs with $2.8 billion, and leveraged inverse ETFs and ETPs with $2.5 billion, while commodity ETFs/ETPs had net outflows of US$5.3 billion.
“The flows into equity ETFs and ETPs show investors are rotating out of cash and fixed income into equities as investor confidence continues to improve,” says Deborah Fuhr, Managing Partner at London-based ETFGI.
In February, equity ETFs and ETPs had net inflows of $11.6 billion. North American equity ETFs and ETPs gathered the largest net inflows $6.6 billion, followed by developed Asia Pacific equity indices with $3.4 billion, and global (ex-US) equity $1.8 billion, while emerging market equity ETFs and ETPs experienced the largest net outflows with $1.4 billion.
The global ETF industry had 3,345 ETFs, with 7,660 listings, assets of $1.86 trillion, from 180 providers on 54 exchanges at the end of February 2013. Including ETFs and other ETPs, at the end of February, the global ETF and ETP industry had 4,764 ETFs and ETPs, with 9,799 listings, assets of $2.04 trillion US dollars, from 209 providers on 56 exchanges.
Vanguard gathered the largest net ETF and ETP inflows in February with $5.95 billion, followed by iShares with $4.23 billion and WisdomTree with $2.16 billion net inflows.
S&P Dow Jones has the largest amount of ETF and ETP assets tracking its benchmarks with $518 billion, reflecting 25.4% market share; MSCI is second with $440 billion and 21.5% market share, followed by BarCap with $182 billion and 8.9% market share.
The top 100 ETFs and ETPs, out of 4,764, account for 59.6% of global ETF and ETP assets. 296 ETFs and ETPs have greater than $1 billion in assets, while 63.3% of all ETFs and ETPs have less than US$100 million in assets, 54% have less than $50 million in assets and 28% have less than $10 million in assets.
To subscribe to the full report please contact deborah.fuhr@etfgi.com.
Source: ETFGI
Despite Rise of Renewables, Fossil Fuel Still Fastest Growing Energy Source
New report analyses how the world consumes energy over the past 100 years through post-2030
Growing energy demand in emerging markets is the biggest challenge for the energy sector
In the last decade, demand for coal grew 10 times more than renewables, twice more than for oil and three times more than for gas
Wind, solar and other non-hydro renewable resources provide only 1.6% of total world energy
March 5, 2013--The biggest energy challenge facing the world today is meeting the rapidly growing energy needs of emerging market nations, including the 1.3 billion people that have little or no access to modern energy, according to the World Economic Forum's Energy Vision 2013-Energy Transitions: Past and Future report
launched today at the IHS CERAWeek Conference.
In response to this challenge, policy-makers are looking towards low-carbon and renewable sources of energy. However, 87% of total world primary energy demand is met by oil, coal and natural gas; more than 92% with nuclear energy. Wind, solar, geothermal and other non-hydro renewable resources provide just 1.6% of total world energy.
view the WEF report-Energy Vision 2013 Energy transitions:Past and Future
Source: World Economic Forum (WEF)
NASDAQ OMX Monthly Index Performance Report
March 5, 2013--The NASDAQ OMX Monthly Index Performance Report (as of 2/28/13) is now available.
Source: NASDAQ OMX
IOSCO publishes Principles of Liquidity Risk Management for CIS
March 4, 2013--The International Organization of Securities Commissions published today the final report on Principles of Liquidity Risk Management for Collective Investment Schemes, which contains a set of principles against which both the industry and regulators can assess the quality of regulation and industry practices concerning liquidity risk management for collective investment schemes (CIS).
Good liquidity risk management is a key feature of the correct operation of a CIS. Its fundamental requirement is to ensure that the degree of liquidity that the open-ended CIS manages will allow it, in general, to meet redemption obligations and other liabilities. The principles of liquidity risk management published today provide details on how compliance with this requirement can be achieved. Since the outbreak of the global financial crisis, the issue of liquidity has been a major concern for regulators. However, the discussions on regulatory reform have tended to focus more on the importance of liquidity in the banking sector than in other sectors. These principles have been designed to address the specificities of liquidity risk management in the context of the operation of a CIS.
view the IOSCO Principles of Liquidity Risk Management for Collective Investment Schemes
Source: IOSCO
Morgan Stanley puts European wealth arm up for sale
March 4, 2013--Morgan Stanley is seeking buyers for the bulk of its wealth management business in Europe.
Investment bankers say the operation, excluding its Swiss division, has been quietly offered to potential buyers.
The move is believed to be part of a plan by Morgan Stanley chief executive James Gorman to achieve savings of $1.6bn between 2012 and 2014.
Source: Financial News
NYSE Euronext Monthly ETF Activity Report-February 2013
March 4, 2013--Listings
February 2013 saw a total of five new ETF listings from Lyxor
At end of February, NYSE Euronext European markets had 667 listings of 578 ETFs from 16 issuers.
Trading activity
Average daily value traded on-book in February of €252.0 million, an increase of 7.21% vs January 2013, and up 6.79% vs February 2012.
Total value traded on-book amounted to €5.05 billion, a decrease of 3.77% vs January 2013, and up 1.71% vs February 2012.
Average of 7,335 on-book trades (single-counted) executed daily last month, an increase of 3.43% vs January 2013, and down 4.37% vs February 2012.
Total of €1.12 billion exchanged in block trades in February, up 32.71% from the €0.84 billion in January.
Overall, block trade volume represented 22.10% of total regulated market ETF trading activity on NYSE Euronext.
Assets Under Management (AUM)
At the end of February 2013, the combined AUM of all ETFs listed on the NYSE Euronext European markets totalled €145.5 billion.
Market Quality
3 LPs took on liquidity responsibilities for 11 additional LP contracts on 11 different ETFs:
OPTIVER continued on their expansion seen in January by adding another 9 ETFs to their list: 5 iShares ETFs, 3 Lyxor ETFs, and 1 Amundi ETF.
SG SECURITES took the lead on the new Lyxor ETF listed on 18 February
FLOW TRADERS started activity on 1 iShares ETF.
Median spread for all listed ETFs of 24.4 bps, an improvement of 3% vs January 2013 and of 24% vs February 2012.
21 Liquidity Providers currently active on ETFs.
visit http://etp.nyx.com for more info.
Source: NYSE Euronext
Boost Research-Weekly Update: Copper Short (3HCS) up 26.7% last month -Eurostoxx trade idea
March 4, 2013--MARKET OUTLOOK
Chart of the week: Copper futures fell last week as the combination of disappointing Chinese growth signals, US economic slowdown and potential fall outs of the Italian election put a drag on global growth prospects
The political impasse in the US reached the ‘sequestration’ deadline on Friday, which may knock up to 0.6% off GDP this year. US employment data is due on Friday, 8 March, which is expected to show a steady jobless rate of 7.9% for February. Positive or negative surprises here will likely express themselves in the US equities market
The Bank of England and European Central Bank meet to decide on rates this week and while no change in policy is expected, investors will be looking for guidance from the central banks
Source: BOOST
ETFS Precious Metals Weekly-Central Bank Stimulus in Focus as Gold Suffers Largest Fall Since May 2012 on USD Strength
March 4, 2013--Gold recorded the largest monthly fall since May 2012, as political uncertainty buoyed the USD. Political uncertainty remains the key risk for the global recovery. The surge in gold following the Italian election results is evidence that investor sentiment remains fragile.
However gold reversed course on the back of USD strength and the upbeat US economic data. The US economic rebound remains in place after a report showed the US economy reversed an initial contraction in Q4 2012, expanding by 0.1% yoy. Strengthening US manufacturing activity in February and a recovering housing market placed additional pressure on the gold price. Investors are likely to find increasing value in gold as a hedge against downside scenarios given that its price is now 17% below its September 2011 peak (in US Dollar terms). Fed Chairman Bernanke in his testimony to Congress reaffirmed the central banks' intention to maintain monetary stimulus as long as the unemployment rate remains above 6.5%. Familiar currency-debasement hedges, like precious metals should remain appealing for investors as five major central banks meet this week, likely signalling intentions for any additional stimulus.
Political manoeuvring will dominate headlines and be a key catalyst for commodity price direction as Italian election and US budget negotiations drag on. The failure to avert the automatic spending cuts that took place last Friday in the US is a cogent reminder that policy paralysis could stop the global recovery in its tracks.
Source: ETFS Securities
Mirae Asset Management- EMEA Equity Market Outlook
March 3, 2013--The EMEA region comprises disparate countries with very different dynamics. The region has a mix of heavy exposure to Europe (Central Europe) and natural resources (Russia and South Africa), both of which appear unexciting in 2013.
Hence, our outlook for much of the region is subdued for 2013. Central Europe will continue to be weighted down by the lack of growth in Europe, while the GDP growth of both Russia and South Africa will be subdued. Turkey stands out as the most attractive within the region, as it has favorable demographics and also benefits from lower commodity prices. After slowing down in 2012, Turkey should experience an acceleration of economic growth in 2013. Overall, domestic growth drivers will remain key to the region and, thus, we remain most positive on stocks exposed to domestic consumption, as well as the growing wealth and development of the consumer.
RUSSIA: Unexciting growth
Macro Outlook
Economic growth in Russia is expected to decelerate modestly in 2013 due to an uninspiring oil and commodity price outlook, rising inflation and stagnating investment. The Central Bank will likely finish its rate hiking in early 2013 to meet recently introduced inflation targets for 2014. Rising food prices caused by a poor 2012 harvest may cause inflation to remain stubbornly high, however, resulting in a bit more tightening in late 2013. As corporate profits remain weak in the first half of the year due to soft EU/China demand and flat oil prices,investment growth will continue to suffer.
Source: Mirae Asset Management
