Global ETF News Older than One Year
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
Financial Stability Board reports to G20 on progress of financial regulatory reforms
November 5, 2012--The Chairman of the Financial Stability Board (FSB) reported to the G20 Finance Ministers and Central Bank Governors today on progress in the financial regulatory reform programme.
In connection with this, the FSB is publishing today:
a letter by the FSB Chair to the G20, sent ahead of their meeting, reporting on the solid progress being made in financial reforms, including in the following priority areas:
building resilient financial institutions;
ending “too big to fail”;
strengthening the oversight and regulation of shadow banking activities;
creating continuous core markets by completing OTC derivatives and related reforms.
The letter also welcomes the recent publication of the recommendations of the Enhanced Disclosure Task Force to improve risk disclosures by major banking institutions, and emphasises the importance of completing convergence on a single set of accounting standards.
Source: Financial Stability Borad (FSB)
Northern Trust, MSCI Create Custom ESG Indices
November 2, 2012--Northern Trust has partnered with investment decision tools company MSCI to give more environmentally and socially responsible investing options to the investment management company's clients.
Under the agreement, Northern Trust will use MSCI’s environmental, social and governance research, ratings and screening tools to provide customizable ESG portfolios. Northern Trust clients looking to integrate ESG factors in their investment portfolios can now access 79 distinct indices ranging from global ESG best in class to regional responsible investing themes, such as clean technology, and further customize these according to their requirements, according to the company.
Source: Enviormental Leader
EPFR Global News Release-Money Market outflows remaining on sidelines ahead of US elections
November 2, 2012--The final 14 days of October saw over $40 billion flow out of EPFR-tracked Money Market Funds, with $28 billion redeemed in the week ending Oct. 31.
But a combination of mixed earnings reports, the Eurozone’s ongoing crisis, Hurricane Sandy and the impending US elections deterred investors from putting that cash to work, with only $5 billion – a seven week low – finding its way into Bond Funds and $2.8 billion into Equity Funds.
Visit http://www.epfr.com/overview.aspx for more info.
Source: EPFR
IMF Working paper-Exogenous Shocks and Growth Crises in Low-Income Countries: A Vulnerability Index
November 2, 2012--Summary: This paper develops a new index which provides early warning signals of a growth crisis in the event of large external shocks in low-income countries.
Multivariate regression analysis and a univariate signaling approach are used to map information from a parsimonious set of underlying policy, structural, and institutional indicators into a composite vulnerability index. The results show that vulnerabilities to a growth crisis in low-income countries declined significantly from their peaks in the early 1990s, but have risen in recent years as fiscal policy buffers were expended in the wake of the global financial crisis.
Source: IMF
IPD sale to MSCI 'necessary for expansion', clients told
November 2, 2012--Index provider MSCI is set to acquire Investment Property Databank (IPD) at the end of November for £78m (€97.2m), having signed a definitive agreement.
IPD said the deal would help it pursue its ambitions to cover real estate markets on a global basis and has sought to reassure clients that it will be "business-as-usual" following the acquisition
Source: IP&E
Update on global adherence to regulatory and supervisory standards on international cooperation and information exchange
November 2, 2012--The Financial Stability Board (FSB) today published a statement providing an update of information on the jurisdictions evaluated to date under its initiative to encourage the adherence of all countries and jurisdictions to regulatory and supervisory standards on international cooperation and information exchange.
The initiative commenced in March 2010 in response to a call by the G20 Leaders at their April 2009 Summit in London for the FSB to develop a toolbox of measures to promote adherence to prudential standards and cooperation among jurisdictions. It complements similar initiatives by the Global Forum on Transparency and Exchange of Information for Tax Purposes to promote adherence to international standards in the tax area, and by the Financial Action Task Force for standards concerning anti-money laundering and combating the financing of terrorism.
Source: Financial Stability Board (FSB)
Fund firms face "unstable foundation," need new products: report
November 1, 2012--Despite cushy profit margins, asset managers must look to new areas such as retirement products and exchange-traded funds for growth as flows to their traditional equity funds stall out, a new research report found.
Scheduled to be released on Thursday morning by consulting firm McKinsey & Co, the report lays out stark alternatives for fund companies even as many have ridden a wave of rising assets to manage.
But often the asset growth has come from rising stock markets, and not because firms have found new ways to bring in cash from investors.
Source: Reuters
OCC Announces Average Daily Cleared Contract Volume Down 17% in October, Futures and Securities Lending Activity Up 31%
November 1, 2012--OCC announced average daily cleared contract volume in October was 15,598,902 contracts, a 17 percent decline from October 2011. Total cleared contract volume reached 327,576,945 contracts for the month, representing a 17 percent decline from
the October 2011 volume of 393,461,669 contracts. OCC's year-to-date total contract volume is down 14 percent with 3,385,778,300 contracts in 2012.
These figures reflect two fewer trading days due to the market shutdown caused by Hurricane Sandy on October 29 and October 30, 2012.
Options: Average daily options trading volume in October was 15,444,282 contracts, 17 percent lower than October 2011. Total options trading volume for the month reached 324,329,913 contracts, a 17 percent decline from October 2011. Year-to-date options trading volume is down 14 percent with 3,355,815,364 contracts.
Source: OCC
IMF paper-Fiscal Transparency, Accountability, and Risk
November 1, 2012--Summary:This paper surveys that state of fiscal transparency in the wake of the current crisis and looks at what can be done to improve it.
It examines the relationship between fiscal transparency and fiscal outcomes; reviews progress in promoting greater fiscal transparency over the past decade; considers the lessons of the recent crisis for existing fiscal transparency standards, practices, and monitoring arrangements; and makes a series of recommendations for renewing the global fiscal transparency effort in the wake of the crisis.
view the IMF paper-Fiscal Transparency, Accountability, and Risk
Source: IMF
