Global ETF News Older than One Year
FOCUS: Gold ETF Popularity Rebounds; Focus Turns To Costs
November 8, 2012--After a quiet summer, interest in gold exchange-traded funds has picked up, with inflows continuing even as gold failed to break above $1,800 an ounce.
With the ultra-loose monetary policy from the global central banks and the Federal Reserve promising monetary stimulus until the jobs picture in the U.S. improves, investors have been returning to the gold ETFs. In October, gold ETF inflows reached 43.8 metric tons, according to Anne-Laure, precious metals strategist at BNP Paribas, with the biggest of the ETFs, the SPDR Gold Shares ETF (NYSE: GLD), capturing 15.5 tons.
Source: Forbes
Dow Jones Islamic Market Titans 100 Index Finished Down 2.27% in October
November 7, 2012--The Dow Jones Islamic Market Titans 100 Index finished October down 2.27%, according to data compiled by S&P Dow Jones Indices.
The index measures the performance of 100 of the world’s leading Shari’ah-compliant stocks.
The Dow Jones Global Titans 50 Index, which measures the world’s 50 largest companies, posted an October loss of 2.31%.
Regionally, the Dow Jones Islamic Market Asia/Pacific Titans 25 Index, which measures the performance of 25 of the leading Shari’ah-compliant stocks in the Asia/Pacific region, decreased 0.49% in October; the Dow Jones Asian Titans 50 Index decreased 0.14%.
Source: Global Finance Magazine
MSCI profit falls as subscription renewals decline
Q3 adj EPS $0.49 vs est $0.51
Operating revenue up 5 pct, operating expense up 6 pct
Subscription revenue up 8 pct
Shares down 6 percent
November 6, 2012-- Market index provider MSCI Inc's third-quarter profit fell more than expected as fewer customers renewed subscriptions and the company both hired more staff and paid more in severance.
MSCI, which lost a big chunk of its business last month with the defection of some Vanguard Group index funds, said new recurring subscription sales fell 14 percent to $27.1 million.
"The company's business is challenged in the near term because they mainly sell to asset managers and asset owners who are facing a challenging environment and market," said Christopher Shutler, an analyst with William Blair & Co.
Source: Reuters
AFM and FINRA Sign MoU on Financial Market Surveillance and Supervision
November 6, 2012-- In October 2012, Richard G. Ketchum, Chairman and CEO of the Financial Industry Regulatory Authority (FINRA) and Ronald Gerritse, Chairman of the Executive Board of the Netherlands Authority for the Financial Markets (AFM) signed a memorandum of understanding (MoU) on information-sharing with a view to strengthening and improving cooperation.
The memorandum establishes a formal basis for cooperation among FINRA and the AFM to more effectively conduct their oversight of regulated markets and financial firms.
Commenting, Ronald Gerritse said, "The AFM supervises the honest and efficient operation of the capital markets. Targeting possible market abuse is one of our main objectives. I consider the signing of this MoU as an important initiative to strengthen our supervisory cooperation, which is important for effective international oversight."
Source: FINRA
ETF Securities-Precious Metals Weekly -Using Gold to Hedge US "Fiscal Cliff" Risk
November 5, 2012--Gold as a hedge against a worst case "fiscal cliff" scenarios
One of the key concerns of investors today is the potential of a severe blow to risk assets if the US "fiscal cliff" is not dealt with responsibly by the US Congress by the end of the year.
If they don't, there is a high risk that the US economy will be driven into recession and will see its sovereign credit rating downgraded again. This concern is likely one of the main reasons risk assets have not performed better despite the announcement by the Fed of an open-ended QE3 in September and improving US and China data in recent weeks. As we show below, being long gold is potentially one of the best hedges against a worst case scenario in the US. During the last Congressional stand-off on the budget ceiling in the summer of 2011 (and resulting US sovereign downgrade), the gold price rallied nearly 30%.
With the US Presidential election this week there have been no signs that Republicans and Democrats are in a frame of mind to make the compromises necessary to resolve budgetary issues. If this situation continues after the election and investor concerns about a possible US downgrade escalates, gold will likely be a beneficiary. But the factor that will likely have the strongest positive impact on the gold price is Spain (or even Italy) asking for a bailout, permitting the Euro to rally, the dollar weaken and general risk appetite to improve. In the meantime, investors that want to hedge against worst case US fiscal cliff scenarios will likely continue to build long gold positions.
Rising China demand improves outlook for "industrial" precious metals Silver rose to a 2-week high of $32.5/oz last week on signs of improving demand from China. The state Chinese research institute, Antaike anticipates silver demand in China will rise by 10% in 2013 to a record high of 7,700 tons mainly due to growing investment demand. Last week China' manufacturing PMI rose to a 4-month high, breaching the 50 point expansionary level. Increasing signs the industrial cycle in China has bottomed out, together with improving US data, bodes well for the more industrial precious metals such as silver, platinum and palladium. But for a full-blown cyclical rally, the fiscal cliff and Spain bailout issues likely need to be resolved.
Key events to watch this week: US Presidential elections and the 18th Chinese Party Congress. While there is no consistent relationship between political affiliation of the US President and the performance of precious metals, the size of the electoral win will help determine the president's ability to push for a budget compromise. The new leadership of China that emerges from the 18th Chinese Party Congress will be closely examined for its support of current expansionary macro policies and its external political/military stance.
Visit www.etfsecurities.com for more info.
Source: ETF Securities
G20 acknowledges slippage on swaps reform
November 5, 2012--International groups tasked with safeguarding the world banking system conceded they would miss a deadline for new rules aimed at limiting risk and boosting transparency in the $648 trillion over-the-counter swaps market.
At a meeting of the Group of 20 leading economies in Mexico City, the head of the G20's regulatory arm said the goal of having strong global swaps reforms in place by the end of 2012 was not in the cards.
"We are going to use all the time that is left in 2012 to get as much done in 2012 and then take stock instead of what remains to be done in a reasonable time frame," Financial Stability Board chief Mark Carney told reporters.
With memories of the 2007-2009 financial crisis still
Source: CNBC
Tenet predicts RDR will force 75% drop in platform market
Keith Richards says consolidation and closures due to lack of profitability will leave just 8-10 providers.
November 5, 2012--
Post-Retail Distribution Review the platform market will shrink from 32 providers currently to potentially as few as eight, as consolidation across the sector and failure to generate sustainable profits increases attrition, Tenet’s Keith Richards has said.
Mr Richards, group distribution and development director at the firm, was speaking at an Aviva roundtable today (6 November) on the RDR, at which the pensions provider revealed research showing advisers’ key concern remains maintaining profitability.
Source: FT.com
Barclays Announces Changes to Its Benchmark Fixed Income Indices
November 5, 2012--Barclays, publisher of leading broad market bond benchmarks, announced today changes to its widely-used benchmark fixed income indices after concluding its annual index review and governance process in October.
The governance process has resulted in a number of rule changes that will take effect as of March 31, 2013, as well as reaffirmations of existing rules that were reviewed and remain unchanged.
These decisions were made after carefully evaluating the evolving fixed income landscape and incorporating the perspectives of a diverse set of global investors who use Barclays indices as portfolio benchmarks and measures of broad fixed income market returns.
Source: Barclays
NYSE Euronext Monthly ETF Activity Report-October 2012
November 5, 2012--October 2012 saw a total of six new ETF listings from three different issuers: 4 ETFs from Lyxor, 1 ETF from Ossiam, and 1 ETF from Amundi
At end of October, NYSE Euronext European markets had 679 listings of 589 ETFs from 16 issuers.
Trading activity
Average daily value traded on-book in October of €217.4 million, down 10.15% MoM.
Total value traded on-book amounted to €5.0 billion, down 5% vs. YTD Average.
Average of 5,809 on-book trades (single-counted) executed daily last month, a decrease of 43.4% vs October 2011, and down 2.3% MoM.
Total of €740.1 million exchanged in block trades in September, up 0.11% from the €739.9 million in September.
Overall, block trade volume represented 14.8% of total regulated market ETF trading activity on NYSE Euronext.
Assets Under Management (AUM)
At the end of October 2012, the combined AUM of all ETFs listed on the NYSE Euronext European markets totalled €153.2 billion, up 7.08% YTD.
Market Quality
6 LPs took on liquidity responsibilities for an impressive 223 additional LP contracts on 205 different ETFs:
BNP PARIBAS ARBITRAGE made an important addition to their current activity by starting activity on a grand total of 84 Amundi ETFs.
SUSQUEHANNA continued expanding their already significant activity by adding an additional 65 ETFs to their list: 15 Amundi ETFs, 18 db-x trackers, 9 HSBC ETFs, 9 iShares, 9 Lyxor ETFs and 5 SPDR ETFs.
COMMERZBANK further built on their expansion seen in the first two quarters of this year by adding another 62 ETFs to their activity: 19 Amundi ETFs, 4 CS ETF, 15 iShares, 21 Lyxor ETFs, 1 PowerShares ETF and 1 RBS Market Access ETF.
CITIGROUP further expanded their LP activity by adding 7 Easy ETFs to their list.
SG SECURITIES expanded their existing coverage with 4 Lyxor ETFs and 1 Ossiam ETF.
CA CHEVREUX started LP activity on 1 Amundi ETF.
Median spread for all listed ETFs of 37.4 bps.
23 Liquidity Providers currently active on ETFs.
Source: NYSE Euronext
BlackRock Investment Institute-Industry Highlights-October 2012
November 5, 2012--Year-to-date global ETP flows of $193.7 billion have surpassed 2011's full year total of $173.4 billion. October flows of $10.9 billion were focused in Emerging Markets, Gold, and Investment Grade exposures.
ETPs listed in Europe generated $4.6 billion in flows, which represents 42% of total global flows in October, the highest ratio this year. Flows remained robust and diversified by asset class, making October the third consecutive month of flows greater than $4 billion.
Investors maintained a degree of risk appetite, embracing both Emerging Market Bonds and Emerging Market Equities which together drew in $8.9 billion. Emerging Market Bond ETPs garnered $1.9bn, the highest monthly total on record. Investors favoured those providing sovereign exposure which offer higher credit quality than many High Yield Corporate Bonds. Credit spreads have compressed in recent months as investors accept additional risk to gain income.
Investment Grade Corporate led Fixed Income flows with $3.4bn in October, showing continued demand for enhanced yield balanced by credit quality.
Source: BlackRock
