Global ETF News Older than One Year
Swaps rules are expected to boost global demand for collateral
Spetember 3, 2012--Money used to make the world go around. Now it is collateral.
This is because collateral, in securitised markets, is the key to credit. Central banks have never lent on an uncollateralised basis and they have spread this predilection.
Collateral is what banks use to fund themselves at banks and central banks, what broker-dealers use to fund themselves at banks and what fund managers use to fund their portfolios at prime brokers.
Source: Financial News
STOXX Monthly Index Report-August 2012 In Review
September 3, 2012--As of August 31, 2012 stock market indices in Europe, Asia, the U.S. and globally were up in July, according to global index provider STOXX Limited.
For the month of August, the Asia, global markets and U.S. markets were down -2.87%, -0.32% and -0.14%, respectively; while European markets were up1.86%. The full performance report is below.
Source: Mondovisione
Questions over viability of US ETFs
September 2, 2012--More than a quarter of exchange-traded funds and notes listed in the US have failed to attract enough assets to be economically viable, according to data compiled for the Financial Times.
Cutthroat competition in the fast-growing market for tradable index-tracking funds is making it harder for sponsors to cover costs and forcing some to close funds. As the number of funds increases, assets are being spread more thinly across products, forcing sponsors to lower fees further in order to compete.
Source: FT.com
Pakistani team to convince MSCI Board tomorrow
September 2, 2012--Experts have expressed hopes from the Morgan Stanley Conversion Index (MSCI) Barra Board meeting with Nadeem Naqvi, managing director, Karachi Stock Exchange (KSE) and Muhammad Ali, chairman of the Securities and Exchange Commission of Pakistan (SECP), scheduled on September 3, as they expect that the KSE might regain the status of MSCI emerging markets, sources said on Saturday.
The prime criterion of MSCI for including any bourse in its emerging markets category is that the market capitalisation should be at least $50 billion, the sources said, adding that Pakistani bourse’s market capitalisation is around $40 billion.
Source: The News
Time for SWFs to show greater transparency
September 2, 2012--Sovereign wealth funds are suddenly on the radar. In truth, many have been there for decades but observers in the investment industry are increasingly noticing their numbers, their size, or in some cases just how big their most recent deal was, and pressure is growing for greater transparency.
Eliot Kalter, senior fellow of the Fletcher School’s Sovereign Wealth Fund Initiative, says the number of SWFs effectively doubled in the past 10 years, while Nick Tolchard, head of Invesco Middle East and global SWF co-ordination, estimates total SWF assets to be $5tn-$6tn.
Source: FT.com
EPFR Global Fund Data-Investors dip into equity funds again ahead of key policy meetings in September
August 31, 2012--Investors responded warmly to talk of increased Chinese spending on infrastructure during the final week of August as they positioned themselves for further quantitative easing, inflation, disappointment, increased volatility or some combination of these elements while maintaining their search for yield.
Flows into EPFR Global-tracked China Equity Funds jumped to a 32 week high, High Yield Bond and Gold Funds both took in over $1 billion, Floating Rate Bond Funds posted their biggest inflow since mid-April and Volatility Funds attracted fresh money for the fourth straight week.
Overall, Bond Funds collectively took in $5.3 billion during the week ending August 29, lifting year-to-date inflows over the $270 billion mark, while Equity Funds absorbed $2.1 billion and their first weekly inflow in four weeks. Money Market Funds recorded modest net outflows as commitments to US Money Market Funds were more than offset by redemptions from their European counterparts.
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Source: EPFR Global
Eurex aims for quick growth in Asia
August 31, 2012--Eurex hopes to gain over-the-counter derivatives business from Asian firms starting next year at its office in Singapore.
In preparation, the exchange will begin clearing interest-rate swaps for European clients in Asia by year-end. Clearing chief Thomas Book said Eurex might also add renminbi-linked and other derivatives to its clearing service as demand develops.
Source: Smart Brief
EDHEC-Risk Institute Research Highlights the Risk of New Forms of Equity Indices Underperforming Cap-Weighted Indices
August 30, 2012--In a new research paper published in the prestigious Journal of Portfolio Management, entitled "Diversifying the Diversifiers and Tracking the Tracking Error: Outperforming Cap-Weighted Indices with Limited Risk of Underperformance" EDHEC-Risk Institute warns of the risk of new forms of alternative-weighted equity indices seriously underperforming traditional cap-weighted indices.
The research shows that the main alternative indices on the market, while superior performers over the long term, have considerable relative drawdowns with regard to their cap-weighted counterparts. These drawdowns can be long (more than two years) and significant (more than 13%).
Source: EDHEC
DCGX Academy: US STIMULUS?: US GDP +1.7 % Vs 1.5% forecast, Consumer Spending 5M High, Jackson Hole
August 30, 2012--COMMODITIES
China Copper Demand Seen Growing at Slowest Pace in 15 Years
Oil Declines for a Second Day as Stockpiles Rise, Storm Weakens
Gold Set to Drop for Second Day as US GDP up 1.7% Vs 1.5% forecast
The rupee retreated 0.1 % to 55.7050 continuing the decline this month, One-month implied volatility, a unchanged at 9.80 %, the lowest level since May 3. The volatility has reduced 1.4 %a, this month.GDP data forecast shows that India's economy expanded at the slowest pace in three years. SENSEX fell for a fifth day. Investors are cautious before Federal Reserve Chairman Ben S. Bernanke speaks at a meeting of central bankers in Jackson Hole, Wyoming, tomorrow, RBI Governor said in New York yesterday that lower growth is acceptable to contain inflation , and need to reduce inflation by 2% . 3M NDF at 56.73 Vs 56.65 .
GOLD
Gold is poised to decline for a second day on opinion that the U.S. Federal Reserve will refrain from additional stimulus amid signs the world's largest economy is improving. Immediate-delivery gold was little changed at $1,657.90 in Singapore, poised for a third monthly gain. December-delivery gold fell as much as 0.4 % to $1,656.70 an ounce on the Comex, and was at $1,660.30. Gold is poised to decline for a second day on opinion that the U.S. Federal Reserve will refrain from additional stimulus amid signs the world's largest economy is improving. Spot Gold was little changed at $1,657.90 an ounce in Asian hours , poised for a third monthly gain.
Source: DGCX Academy
Australia EU Link Makes Carbon-Market Theory Real, Marcu Says
August 29, 2012--The proposed linking of the European Union and Australian greenhouse-gas-reduction programs will demonstrate to policy makers across the world that carbon markets can help address climate change, said Andrei Marcu.
“Those who say there is no urgency are being contradicted on the ground,” Marcu, head of the Centre for European Policy Studies’ Carbon Market Forum in Brussels, said today in an interview from United Nations climate talks in Bangkok. “This is a very good signal. This is not theory any more.”
Source: Bloomberg
