Global ETF News Older than One Year
Thomson Reuters Announces Findings of its Annual Sukuk Perceptions and Forecast Study
Global captive sukuk demand is expected to almost double from $240 billion in 2012 to reach $421 billion by 2016
December 10, 2012-- Thomson Reuters today released the findings of a Sukuk Perceptions and Forecast Study conducted by Thomson Reuters and Zawya in November 2012.
The study centres around a survey of sukuk lead arrangers and investors conducted in August and September 2012. The primary empirical data gathered from the survey was subsequently developed to provide forward-looking analytics on the appetites and preferences of sukuk investors for 2013 and beyond.
According to the study, global captive sukuk demand is expected to double from $240 billion in 2012 to reach $421 billion by 2016. Supply is also forecasted to grow but the spread between demand and supply is expected to widen even further to more than $280 billion within the next four years.
Source: Thomson Reuters
NASDAQ OMX Acquires 25% of Dutch Derivatives Trading Venue TOM
December 10, 2012--NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced the acquisition of 25 percent of the Dutch cash equity and equity derivatives trading venue TOM, The Order Machine. The agreement also includes an option for NASDAQ OMX to acquire an additional 25.1 percent of the remaining shares and secure a majority stake in TOM.
The transaction provides TOM global reach and scale and delivers on NASDAQ OMX's strategy to expand its derivatives presence across the European market. The current owners will remain shareholders, and as co-owners BinckBanck will provide order flow and Optiver and IMC will provide liquidity in the Dutch market. The fourth co-owner ABN AMRO will also connect to TOM.
Source: NASDAQ OMX
Former iShares boss returns to ETF arena
December 9, 2012--Lee Kranefuss, a former head of iShares, the world's largest exchange traded funds manager, has been appointed by Warburg Pincus to lead the $30bn global private equity group's expansion into the ETF market.
Mr Kranefuss was the chief executive officer of iShares from its launch in 2000 under the watch of Barclays Global Investors until 2010 when the business had accumulated assets of more than $600bn.
Cary Davis, managing director at Warburg Pincus said Mr Kranefuss has been hired to evaluate opportunities in ETFs,
Source: FT.com
Backroom dealing exposed
December 9, 2012--Large asset management groups appear to be routinely co-ordinating internal trades in order to protect funds that are suffering heavy redemptions from being forced to sell stock at fire-sale prices.
The findings raise serious questions as to whether fund managers engaging in such “backroom dealing” are violating their fiduciary duty to their own investors by buying stock in order to aid a colleague.
Source: FT.com
EPFR Global Fund Data News Release-
December 7, 2012--China Funds benefit from data, shift in perceptions about US deficit deal
With investors translating the apparent deadlock between Democrats and Republicans as "cliff on" for the US economy, China reclaimed their affections during early December.
EPFR Global-tracked China Equity Funds posted their second biggest weekly inflow year-to-date during the week ending December 5 as recent factory, retail and investment data showed the Chinese economy regaining momentum. US Equity Funds, meanwhile, posted outflows for the ninth time in the past 11 weeks while flows into US Bond Funds slipped to a five week low.
Emerging Markets Equity and Bond Funds sustained their year-end surge, with flows into EM Equity Funds hitting a 10 week high while the YTD total for EM Bond Funds climbed to within $1 billion of breaking the existing full year inflow record.
There are also some signs that investors on both sides of the Atlantic believe the Eurozone crisis may have passed its high point. Europe Money Market Funds have seen net redemptions of over $17 billion during the past two weeks -- versus inflows of more than $35 billion for their US counterparts -- while flows into Europe Equity Funds hit an 11 week high and Europe Bond Funds extended their longest inflow streak since 2Q10.
Visit http://www.epfr.com for more info
Source: EPFR
ETFs enter plans as part of higher risk strategies
December 7, 2012--Exchange traded funds may not yet be ubiquitous in defined contribution (DC) retirement plans, but they are beginning to appear in some inconspicuous areas.
The DC market has been considered a holy grail for some promoters of the ETF industry, if only for its significant asset base. But ETFs have so far struggled to make headway in the $4.5tn market. Within the 401(k) segment of DC, more than half of 401(k) assets are in mutual funds, while less than 1 per cent of assets are in standalone ETFs as of 2011, according to Cerulli Associates.
Source: FT.com
MIGA Report Finds that Sovereign Default and Expropriation Risks Worry Investors
However, Investors Moving Forward Despite Ongoing Uncertainty
December 6, 2012--Foreign investors, attracted by stronger economic growth in developing countries while mindful of risks, remain relatively optimistic about these destinations in the short term according to the results of a survey released in a report by the World Bank's Multilateral Investment Guarantee Agency (MIGA).
World Investment and Political Risk notes that half of the survey’s respondents plan to increase investment in developing countries in the next 12 months.
This sentiment dovetails with foreign direct investment (FDI) trends that show developing-country flows continue to account for a substantial share of global FDI: in 2012 they are estimated to be 36 percent of inflows and 14 percent of outflows. FDI to developing countries is expected to rebound in 2013 to exceed pre-2008 highs. New challenges, especially the ongoing sovereign debt crisis and recession in the euro zone, have slowed the flow of FDI from traditional sources. However, FDI from new investors based in developing countries has risen significantly in recent years, and is expected to reach a record level this year. Notably, about a quarter of developing countries’ outward FDI currently goes into other developing countries (“South-South” investment).
view the 2012 World Investment and Political Risk report
Source: World Bank
Vanguard considering active rollouts in Europe
December 6, 2012-- Vanguard says it is "possible" its current European fund line-up will be extended to include actively managed products.
The US mutual fund firm, which launched into the UK in 2009 with several low-cost index funds, says its success in the US active fund sector would provide it with the ideal springboard to offer similar products in Europe.
Source: FT.com
Dow Jones-UBS Commodity Indices: November 2012 Performance Report
December 6, 2012--The Dow Jones-UBS Commodity Index was up 0.04% for the month of November.
The Dow Jones-UBS Single Commodity Indices for orange juice, tin and aluminum had the strongest gains with month-end returns of 15.73%, 9.69% and 9.62%, respectively. The three most significant downside performing single commodity indices were soybean meal, soybean and natural gas, which ended the month down 8.48%, 7.10% and 6.78%, respectively.
Source: Mondovisione
ETF and ETP assets reach all-time high of 1.9 trillion US dollars at end November 2012
December 5, 2012--Global Exchange Traded Fund (ETF) and Exchange Traded Product (ETP) assets reached an all-time high of US$1.9 trillion at the end of November 2012, according to figures from ETFGI's monthly global ETF and ETP industry insights.
Assets in ETFs and ETPs reached all-time highs of US$1.3 trillion in the US, US$359 billion in Europe, US$78.7 billion in Asia Pacific (ex-Japan), US$46 2E9 billion in Japan and US$11.6 billion in Latin America. Year to date through end of November 2012, ETF and ETP assets have increased by 23.8% from US$1.5 trillion to US$1.9 trillion.
Over the past 10 years the global compounded annual growth rate (CAGR) of these products has been 30.2%. There are currently 4,726 ETFs and ETPs, with 9,719 listings, assets of US$1.9 trillion, from 208 providers on 56 exchanges.
With the outcomes of the US elections and super storm Sandy known, and a sense among investors that a solution to the looming fiscal cliff will be negotiated, US$9 billion was invested into ETFs and ETPs providing exposure to US equity indices, reversing nearly all of the outflows during October. Overall, US$ 21.3 billion of net new money went into ETFs and ETPs in the month of November. Looking year to date through end of November 2012, ETFs and ETPs saw net inflows of US$223 billion, US$69 billion above the level of net new assets at this time last year.
Equity ETFs and ETPs have gathered the largest net inflows accounting for US$127 billion followed by fixed income ETFs and ETPs with US$61 billion and commodity ETFs and ETPs capturing US$22 billion.
We are likely to end 2012 with a record level of assets in ETFs and ETPs and with a record level of net new assets invested into the products during the year according to Deborah Fuhr, Managing Partner at ETFGI.
Equity focused ETFs and ETPs have gathered US$127 billion which is US$36 billion more than all of last year. Products providing exposure to North American equity indices have been the most popular receiving US$62 billion, followed by emerging market equity with US$38 billion and Asia Pacific equity with US$9.6 billion.
Source: ETFGI
