Global ETF News Older than One Year
Custodian banks balk at AIFM rules
January 6, 2013--Any hopes that the final version of the Alternative Investment Fund Managers Directive would be kinder to custodian banks were dashed in the final days of last year.
The European Commission’s “level 2” measures, published on December 19, made it clear that custodian banks will indeed be liable for lost assets held in their custody. To avoid liability, depositories will have to show that the loss was caused by an event outside its control and that it had taken all possible precautions to protect the asset. The directive also bans depositories from delegating their liability risks to sub-custodians.
In addition to the strict liability rule, which effectively makes depositories responsible for mistakes and fraud across the sector, they will also have to monitor all cash movements of clients’ assets – they must know where trillions of dollars of client monies are at any given time.
view moreSource: FT.com
Group of Governors and Heads of Supervision endorses revised liquidity standard for banks
January 6, 2013--The Group of Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision, met today to consider the Basel Committee's amendments to the Liquidity Coverage Ratio (LCR) as a minimum standard.
It unanimously endorsed them. Today's agreement is a clear commitment to ensure that banks hold sufficient liquid assets to prevent central banks becoming the "lender of first resort".
The GHOS also endorsed a new Charter for the Committee, and discussed the Committee's medium-term work agenda.
Source: BIS
FTSE China A50 Index-linked ETFs hit US$10 Billion AUM
January 4, 2013--FTSE Group ("FTSE"), the award winning global index provider, is proud to announce that the combined assets of FTSE China A50 Index linked ETFs have surpassed $US10 billion
FTSE reveals the combined assets of FTSE China A50 Index linked ETFs have gone past $US10bn. This milestone underlines FTSE’s position in the China ETF marketplace, with a majority of the assets under management (AUM) in China-themed ETFs listed globally – more than 58% - benchmarked to FTSE indices.
The AUM of FTSE China A50 Index linked ETFs, including the iShares FTSE A50 China ETF and CSOP FTSE China A50 ETF, both listed on the Stock Exchange of Hong Kong, went past the record US$10bn level over the holiday period. The index represents the 50 largest A-Share companies, offering the optimal balance between representativeness and tradability for China’s A Share market.
Source: FTSE
Cliff Bounce: Russell Global Indexes Reflected Positive Returns on First Trading Day of 2013 for the Global Equity Markets
January 4, 2013--European equity markets showed positive returns on Wednesday, January 2nd 2013 as reflected by the Russell Eurozone Index, the day after U.S. Congress passed a resolution to avert the so-called "fiscal cliff."
The Russell Eurozone Index reflected a daily return of 2.4%, led by country constituents Greece (3.8%), Finland (3.8%) and Italy (3.6%).
Other world equity markets also performed strongly Wednesday, with positive returns for the Russell U.S. large-cap Russell 1000® Index, U.S. small-cap Russell 2000® Index, Russell Greater China Index and Russell Emerging Markets Index. This follows positive returns for these indexes in 2012.
Source: Russell Investments
Uncertainty a definite plus for ETFs as assets hit record
Nearly $188B in net inflows in 2012; tactical, strategic
January 4, 2013--The exchange-traded-funds industry is enjoying a boost in its popularity, thanks to growing levels of political and economic uncertainty, according to the latest report from ETFGI LLP.
The research firm said assets in exchange-traded products listed in the U.S. set a record in 2012 of $1.35 trillion, a 27% increase over 2011
Source: Investment News
BATS Global Markets Sets Full-Year Market Share Records In All Business Segments
Reports Yearly Average of 11.9% in U.S. Equities; 3.3% in U.S. Options; BATS Chi-X Europe Reports 24.6% in European Equities
January 4, 2013--BATS Global Markets (BATS), a leading operator of securities markets in the U.S. and Europe, reported its best annual market share performance across all of its markets in 2012,
including 11.9% U.S. equities market share for the year, up from 11.2% in 2011, the previous annual record, and 10.2% in 2010.
BATS Chi-X Europe averaged 24.6% pan-European equities market share for the year, measured by notional value traded, maintaining its position as the largest equity market in Europe during 2012, compared to a pro forma market share of 24.1% a year ago. In the U.S., BATS Options recorded 3.3% market share for the year vs. 3.0% in 2011.
Source: BATS Global Markets
Year End Commodities Commentary: Dow Jones-UBS Commodity Index Ends 2012 Down
Losses In Coffee, Natural Gas And Orange Juice
January 4, 2013--The Dow Jones-UBS Commodity Index ended the year down 1.14%.
The three most significant downside performing single commodity indices in 2012 were coffee, natural gas and orange juice, which ended the year down 41.64%, 30.70%, and 26.07%, respectively.
Source: Mondovisione
Dow Jones-UBS Commodity Indices 2012 Year End Performance Report
January 4, 2013--The Dow Jones-UBS Commodity Index ended 2012 down 1.14%. The Dow Jones-UBS Single Commodity Indices for soybean meal, unleaded gasoline and soybeans had the strongest gains producing year-end returns of
48.94%, 25.57%, and 23.85%, respectively. The three most significant downside performing single commodity indices in 2012 were coffee, natural gas and orange juice which ended the year down 41.64%, 30.70%, and 26.07%, respectively.
Source: Mondovisione
Almost All of Wall Street Got 2012 Market Calls Wrong
January 4, 2013--From John Paulson's call for a collapse in Europe to Morgan Stanley (MS)'s warning that U.S. stocks would decline, Wall Street got little right in its prognosis for the year just ended.
Paulson, who manages $19 billion in hedge funds, said the euro would fall apart and bet against the region’s debt. Morgan Stanley predicted the Standard & Poor’s 500 Index would lose 7 percent and Credit Suisse Group AG (CSGN) foresaw wider swings in equity prices. All of them proved wrong last year and investors would have done better listening to Goldman Sachs Group Inc. (GS) Chief Executive Officer Lloyd C. Blankfein, who said the real risk was being too pessimistic.
Source: Bloomberg
Financial advisers drop 'independent' tag
January 4, 2013--Financial advisers' trade bodies are being forced to rebrand themselves and drop the word "independent" as a growing number of their members will be able to advise only on a "restricted" range of products under new regulations introduced on December 31 2012.
Sifa, the body for financial advisers working with solicitors, has announced that its acronym will no longer stand for Solicitors Independent Financial Advice, which will change to Supporting Impartial Financial Advice.
Source: FT.com
