Global ETF News Older than One Year
S&P SMIT 40 Index launched by S&P Dow Jones Indices
October 22, 2012--S&P Dow Jones Indices today announced the launch of the S&P SMIT 40 Index, designed to measure the performance of 40 leading companies from four emerging markets: South Korea, Mexico, Indonesia and Turkey ("SMITs").
The index has been licensed by UniCredit to serve as the basis for structured products, to be issued in Germany and Austria. Marketed under the brand names "HypoVereinsbank onemarkets" in Germany and "UniCredit onemarkets" in Austria, the structured products will be listed on the Frankfurt and Stuttgart Stock Exchanges.
The S&P SMIT 40 Index represents the four largest markets of the Next Eleven (N-11). The N-11, a concept developed by Goldman Sachs Asset Management (GSAM), are the eleven countries (Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, Turkey, South Korea, and Vietnam) recognized by GSAM as having the potential for strong long-term growth (in addition to the BRIC countries). The Index is designed to be representative of these four equity markets yet be efficient to replicate in order to support financial products.
Source: S&P Dow Jones Indices
Banks Opt Out in Swap Row
October 22, 2012--Two large banks in Asia and Europe said they won't register with U.S. regulators to trade complex derivatives with U.S.-based financial companies, amid controversy over a proposed rule tied to the Dodd-Frank financial overhaul.
Non-U.S. banks have been complaining for months about regulations that would force banks to register with U.S. regulators if they trade a set amount of swaps, a type of privately negotiated derivative, with U.S. banks or for U.S. clients.
Source: Wall Street Journal
EPFR Global Fund Data News-EM Funds sustain momentum as investors step up pursuit of yield
October 19, 2012-Some better US data and expectations that Spain will seek a bailout sooner rather than later encouraged investors to put more emphasis on returns during the week ending October 17.
EPFR Global-tracked Emerging Market Bond and Emerging Market Equity Funds both took in over $1 billion during the week, as did High Yield Bond and Dividend Equity Funds, while Gold Funds posted outflows for the first time since late July and another "safe haven" fund group -- US Equity Funds -- recorded their fourth consecutive week of net redemptions.
"Our daily data shows that flows on the equity side did not pick up until later in the week, when the US retail numbers were out, and the fact flows into Money Market Funds hit a 45 week high suggests that investors are still very cautious," noted EPFR Global Research Director Cameron Brandt.
Overall, EPFR Global-tracked Bond Funds took in another $8.4 billion which took year-to-date inflows into record setting territory. All Equity Funds posted a net outflow of $1.2 billion while Money Market Funds attracted $23.1 billion.
Visit http://www.epfr.com/overview.aspx for more info.
Source: EPFR
Global Farming Index feeds hungry and generates returns
Listed farming companies undercapitalised
Poor harvests signal need for higher production
Index returns over 10% in 12 months
October 16, 2012--
Investment into global farm production has not only generated high returns for investors over the past year, but will be increasingly necessary in the fight to avert global food shortages.
Extreme weather has led to a fall in food production this year, leading to dramatic increases in food prices1, and the UN has called for increased sustainable food production to avert a global crisis. The GAIA Farming Index calculated by Indxis, a leading independent provider of bespoke indices, allows investors to support agricultural production through a great long-term investment
Source: Indxis
ESMA publishes two lists of links to national websites relating to the notification and disclosure of net short position
October 19, 2012--According to Article 9(4) of Regulation (EU) No 236/2012 on short selling and certain aspects of credit default swaps, ESMA has to post on its website the addresses of the central websites operated or supervised by each competent authority where the net short position in shares should be publicly disclosed.
In addition, as announced in ESMA's Q&A on the Short Selling Regulation, ESMA publishes the list of the links the websites in the different Member States where the information on the national process for submitting notifications and disclosure of net short positions is specified.
Source: ESMA
'Flash crash' reforms will fail to make markets safer, study claims
Finance academics call for "liquidity safety valves" to prevent stock market turmoil
October 18, 2012--
US 'flash crash' reforms will fail to avert another market meltdown unless they are coupled with new "liquidity-based circuit breakers"' researchers claim.
Academics studying the May 2010 crash, which saw stock prices plummet and recover in the space of minutes, have called for the introduction of liquidity safety valves to go alongside standard price-based circuit breakers.
The findings come from a new paper ‘Illiquidity Contagion and Liquidity Crashes’ by Dr Giovanni Cespa of Cass Business School, part of City University London, and Thierry Foucault from HEC School of Management in Paris.
The findings come from a new paper 'Illiquidity Contagion and Liquidity Crashes' by Dr Giovanni Cespa of Cass Business School, part of City University London, and Thierry Foucault from HEC School of Management in Paris.
view the Illiquidity Contagion and Liquidity Crashes paper
Source: Cass Business School
Advanced Automation Will Bring Greater Efficiency to the Commission-Recapture Process, Says TABB Group
October 18, 2012--In new research published today, TABB Group says that recent advancements in automating low-touch trading are helping to ease institutional investors' traditionally manual, often burdensome commission-recapture process.
According to Cheyenne Morgan, research analyst and author of “Automated Trading Decisions: Unifying the Goals of Asset Managers and Asset Owners,” as the buy-side’s trading desk becomes more efficient, their sales traders are able to focus greater time to and attention on high-touch trading, adding the most value for their customers.
The new research note focuses on how developments in automation technology will allow asset managers to streamline low-touch, labor-intensive responsibilities, such as satisfying commission-recapture programs and focus on more nuanced tasks, ultimately generating alpha. The report also covers automation solutions available today, including various software platforms that help implement low-touch and no-touch trading strategies.
Source: TABB Group
ETF Securities-Global Commodity ETP Quarterly 3Q 2012
October 17, 2012--We are pleased to present the Q3 2012 edition of the Global Commodity ETP Quarterly
Our goal is to provide you with the most comprehensive one-stop-shop reference guide for investors interested in accessing commodities market returns through exchange traded products (ETPs).
A comprehensive and fully up-to-date reference guide to global commodity ETPs and indexes - no ETP type or geographic area is excluded. The report details the large and growing choice of commodity ETP exposures and strategies around the world.
Summary analysis of global commodity ETP flows, trading volumes and AUM trends. Includes a detailed analysis of what has been driving trends so far in 2012 and the outlook for the rest of the year and 2013.
Roll yield analysis (contango/backwardation) broken down by individual commodity and commodity sectors.
Useful fundamental commodity data and information. An updated and revised inventory trends section, positioning data, futures curve developments, commodity index compositions and weights.
Source: ETF Securities
Natixis buys Chicago boutique and plans new fund launch
October 17, 2012--French firm Natixis Global Asset Management (NGAM) has acquired US boutique McDonnell Investment Management and will launch a new fund focused on the municipal bond sector.
The Chicago-based boutique runs $13.5 billion for both retail and institutional investors and is a bond specialist with products covering a range of sectors such as 'core' bonds and municipal bonds.
Source: CityWire
Credit Suisse to sell European ETF business-sources
October 17, 2012--Credit Suisse Group AG (MLPN.P) has put its $17.2 billion European exchange-traded fund business up for sale, according to sources familiar with the matter.
BlackRock Inc (BLK.N) and State Street Global Advisors, the asset management arm of State Street Corp (STT.N), are among the firms that have bid for the business, three of the sources said.
The first round of bids was due in early October and the investment banking arm of Credit Suisse is representing its parent company on the deal, they said.
Source: Reuters
