Global ETF News Older than One Year
EDHEC-Risk Institute Survey Confirms Investor Dissatisfaction with Corporate Bond Indices
February 26, 2013--In a survey entitled "Reactions to "A Review of Corporate Bond Indices: Construction Principles, Return Heterogeneity, and Fluctuations in Risk Exposures" researchers at EDHEC-Risk Institute have analysed industry reactions to a previous EDHEC-Risk study on corporate bond indices and confirmed that investors are dissatisfied with the indices currently on offer.
Among the main findings of the survey:
Only 41% of respondents are satisfied or very satisfied with corporate bond indices, a level which confirms that current corporate bond indices do not meet investor needs.
The instability of corporate bond indices’ risk factor exposures was affirmed by the majority of respondents. Between 64% and 80% of respondents agree or strongly agree that the instability of interest rate risk exposure is problematic. 45% of respondents agree or strongly agree that bond issuers and investors have conflicting interests when it comes to the duration of corporate bonds. Using derivative instruments may appear to be a solution to interest rate risk instability, as in principle one can create an overlay strategy that neutralises the fluctuation of risk exposures in the underlying index, but only 57% of respondents indicate that they can use derivatives for such purposes, leaving almost half of them with no tools to manage the instability problem.
view the EDHEC-Risk Institute Publication Reactions to a Review of Corporate Bond Indices
Source: EDHEC
Deutsche Boerse AG not in merger negotiations
February 25, 2013--Deutsche Börse AG is not in merger negotiations with CME Group. As repeatedly communicated, Deutsche Börse Group's primary strategic focus is on organic growth, mainly by expanding its business into growth
regions in Asia, extending its services for unsecured and unregulated markets, and expanding its combined market data and IT business.
Source: Deutsche Börse
BNY Mellon Names Debra Baker to Head New Global Risk Solutions Group
'Performance & Risk Analytics' unit repositioned to meet financial industry's need for enhanced risk management, transparency and regulatory reporting
February 25, 2013--BNY Mellon, the global leader in investment management and investment services, has announced that Debra Baker will lead the company's newly renamed Global Risk Solutions group, which brings together the functions of its current Performance & Risk Analytics business.
Global Risk Solutions provides a wide array of investment analysis products and services, integrated with BNY Mellon's core custody and accounting platforms. Clients such as pension funds, foundations and endowments, and other large financial institutions turn to the group for risk analysis, performance measurement, compliance monitoring, and peer group comparisons and attribution tools for their investment strategies.
Source: BNY Mellon
Boost Weekly Performance Update-Short silver up 39.5% last month -Eurostoxx trade idea
February 25, 2013--NYMEX WTI Crude Oil prices fell -3.4% last week, with the Boost WTI Oil 3x Short Daily ETP rising by +10.2%. The combination of lower demand risk and higher supply may see the bottom of the consolidation pattern (triangle) tested which is near $80/bbl
Fed minutes released last week (for Jan 29-30 FOMC meeting) raised concerns in equity and other markets that the Fed may not persist in their QE3 bond buying programme for as long as investors had hoped, the Fed Chairman Bernanke's testimony to Congress (26/27 Feb.) will be important this week
UK loses its Aaa rating as Moody's downgrades it to Aa1; this risk was well flagged but GBP weakness after the announcement on Friday will be important to watch
Source: Boost
IOSCO Report Investor Education: Initiatives Relating to Investment Services's
February 25, 2013--Introduction:
Executive Summary:
The purpose of this report is to provide IOSCO members and the public with an overview of the different approaches that supervisory authorities (and SROs) take to educate retail investors on issues relevant to investments in financial products that are distributed by intermediaries.
This report sets out the results of a fact-finding survey of Committee 3 members that show a wide range of approaches. The results also indicate that supervisory authorities share common approaches and face some common obstacles in determining the most effective educational measures.
view the IOSCO Report- Investor Education: Initiatives Relating to Investment Services's
Source: IOSCO
EPFR Global News Release-Money Market Funds lose, other fund groups gain heading into final week of February
February 22, 2013--The third week of February saw nearly every major EPFR Global-tracked fund group post inflows as cash pulled from US Money Market Funds at the fastest clip since mid-3Q11 looked for new homes.
Overall, Money Market Funds saw $32.1 billion pulled out during the week ending February 20 – with $25.8 billion of that coming from US funds – while Equity Funds absorbed a net $8.58 billion, Bond Funds $3.47 billion, Balanced Funds $1.11 billion and Alternative Funds $710 million.
Visit http://www.epfr.com for more info
Source: EPFR
SPDR gold fund sees biggest 1-day outflow since Aug 2011
February 21, 2013--SPDR Gold Trust, the world's largest gold-backed ETF, said its bullion holdings dropped by 20.77 tonnes on Wednesday, its largest one-day outflow in 18 months.
The fall coincided with the largest one-day sell-off in gold in nearly a year, down 2.6 percent, after minutes from a U.S. Federal Reserve meeting suggested some members were questioning its ultra-loose monetary policy.
Source: MineWeb
Reports of the decline of ETFs have been greatly exaggerated
February 21, 2013--Exchange-traded funds reached several milestones recently.
At the end of last month, they turned 20 and their global assets, along with exchange-traded products, breached the $2 trillion mark with a collective $2.05 trillion.
Source: Financial News
Boost-Trade Idea of the Week: Silver Prices Continue To Fall
February 21, 2013--CFTC data shows that speculators reduced net longs by 3,789 lots (10.6%) to 32,072 contracts for the week ended February 12 with similar reports for gold
If silver is trading on the back of flows in and out of the US dollar (USD) then the near and medium term is that USD firms and precious metal prices fall
The weekly price chart below underlines the risk that the drop below key support at $29.24/oz marks a medium term trend change
Source: Boost
Deutsche Boerse CEO Says Asian Expansion as Top Priority
February 20, 2013--Deutsche Boerse AG set up a committee to consider opportunities as the operator of the Frankfurt stock exchange focuses on Asia to drive growth amid declining volumes.
“Continuing to develop the markets in Asia is of highest priority in the medium term,” Chief Executive Officer Reto Francioni said at a press conference in Frankfurt today. “In the foreseeable future, significant growth will take place not in Europe or North America, but primarily in Asia.”
Source: Bloomberg
