Global ETF News Older than One Year
Worldwide ETF assets keep increasing, but at slower rate
But flows switched to fixed-income offerings and out of equities
June 11, 2012--Worldwide assets managed in ETFs by managers in Pensions & Investments annual survey rose 9.2% in 2011, to $1.278 trillion, far off the pace of the 36% growth in 2010.
Of that total, more than 95% is in sponsored, or proprietary, exchange-traded funds. (P&I did not ask for a breakout between assets in sponsored ETFs vs. non-proprietary ones for the year-earlier survey, but estimates those assets alone rose 9.5%, to $1.218 trillion.).
Source: Pensions & Investments
Shin Corporation to enter the FTSE SET Large Cap after the June semi-annual review
June 11, 2012--FTSE Group ("FTSE"), the award-winning global index provider and the Stock Exchange of Thailand ("SET") announce today that Shin Corporation will replace Thai Airways in the FTSE SET Large Cap Index following the semi-annual review of the FTSE SET Index Series.
The FTSE SET Index Series is reviewed semi-annually by the independent FTSE SET Advisory Committee. The committee is made up of leading local and international market professionals who approve all index changes and ensure that the index review fully complies with a set of highly transparent and publicly available index rules.
All constituent changes will take effect before the start of trading on 18 June 2012. The next review will take place on 14 December 2012.
Source: FTSE
Quarterly Changes to the NASDAQ Q-50 Index
June 11, 2012--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) announced today the results of the quarterly re-ranking of the NASDAQ Q-50 IndexSM (Nasdaq:NXTQ), which will become effective prior to market open on Monday, June 18, 2012.
The following six securities will be added to the Index: Analog Devices, Inc. (Nasdaq:ADI), Fortinet, Inc. (Nasdaq:FTNT), IAC/InterActiveCorp (Nasdaq:IACI), Lincoln Electric Holdings, Inc. (Nasdaq:LECO), NetEase, Inc. (Nasdaq:NTES) and Patterson Companies, Inc. (Nasdaq:PDCO).
Source: Virtual Strategy Magazine
Standard & Poor''s Credit Ratings Now Available on Xpressfeed, S&P Capital IQ's flagship data feed management solution
Addition of Standard & Poor's Credit Ratings offers an independent analytical view of creditworthiness and risk exposures for new and existing deals.
June 11, 2012--S&P Capital IQ, a leading provider of multi-asset class data, research and analytics, today announced the integration of Standard & Poor's Credit Ratings within Xpressfeed, the firm''s enterprise data feed management solution.
Xpressfeed provides users access to qualitative and quantitative content from S&P Capital IQ, including public and private company information, S&P Indices, third-party content and now Standard & Poor's Credit Ratings. This addition provides financial professionals access to the full universe and history of credit ratings from Standard & Poor's Ratings Services. Xpressfeed allows credit ratings to be delivered at a near real time frequency, daily and monthly.
Source: S&P Capital IQ
ETFGI Global ETF/ETP Industry Insights, May 2012
June 12, 2012--Summary for ETFs listed globally
At the end of May 2012, the global ETF industry had 3,279 ETFs, with 7,230 listings, assets of US$1,443.6 Bn, from 164 providers on 50 exchanges.
Assets
ETF assets have decreased by 5.5% from US$1,528.1 Bn in April 2012 to US$1,443.6 Bn in May 2012. YTD through end of May 2012, ETF assets have increased by 6.8% from US$1,351.4 Bn to US$1,443.6 Bn. Flows
In May 2012, ETFs saw net inflows of US$20.9 Bn. YTD through end of May 2012, ETFs saw net inflows of US$81.0 Bn. Vanguard gathered the largest net inflows in May with US$6.8 Bn, followed by Huatai-PineBridge Fund Management with US$4.2 Bn and Harvest Fund Management with US$2.8 Bn net inflows. Vanguard gathered the largest net inflows YTD with US$28.6 Bn, followed by iShares with US$18.4 Bn and SPDR ETFs with US$5.9 Bn net inflows. SPDR ETFs experienced the largest net outflows in May with US$0.8 Bn. db x-trackers experienced the largest net outflows YTD with US$1.3 Bn, followed by Lyxor Asset Management with US$0.7 Bn and EasyETF with US$0.7 Bn net outflows.
Summary for ETFs/ETPs listed globally
Including other Exchange Traded Products (ETPs), at the end of May 2012, the global ETF/ETP industry had 4,650 ETFs/ETPs, with 9,316 listings, assets of US$1,618.9 Bn, from 198 providers on 54 exchanges.
Assets
ETF/ETP assets have decreased by 5.8% from US$1,717.8 Bn in April 2012 to US$1,618.9 Bn in May 2012.
YTD through end of May 2012, ETF/ETP assets have increased by 6.1% from US$1,526.0 Bn to US$1,618.9 Bn.
Flows
In May 2012, ETFs/ETPs saw net inflows of US$17.9 Bn. YTD through end of May 2012, ETFs/ETPs saw net inflows of US$85.3 Bn.
Vanguard gathered the largest net inflows in May with US$6.8 Bn, followed by Huatai-PineBridge Fund Management with US$4.2 Bn and Harvest Fund Management with US$2.8 Bn net inflows.
Vanguard gathered the largest net inflows YTD with US$28.6 Bn, followed by iShares with US$18.7 Bn and SPDR ETFs with US$7.0 Bn net inflows.
SPDR ETFs experienced the largest net outflows in May with US$1.2 Bn.
db x-trackers experienced the largest net outflows YTD with US$1.3 Bn, followed by Lyxor Asset Management with US$0.7 Bn and Deutsche Bank with US$0.7 Bn net outflows.
Source: ETFGI
SPAIN AID-WORRIES FADE:Spain asks for 126$ Billion-Greece
June 11, 2012--HIGHLIGHTS
INR
against the USD. bid at 55.5650 as of 9:04 a.m. in Mumbai versus 55.5800 the previous day,Offer prices were indicated at 55.5700 per USD, versus 55.5900 the previous day. Asian Currencies Gain as Spain Aid, Chinese Data Boost Sentiment
Asian currencies rose, led by the biggest rally in Malaysia's ringgit in six weeks, as a financial bailout for Spain and data showing China's exports climbed twice as fast as economists estimated supported stocks. JPMorgan Asia USD Index added to its first weekly gain since April, while the MSCI Asia-Pacific Index of shares advanced 1.7 %. Spain asked euro-region governments over the weekend for as much as 100 billion euros ($126 Billion USD).
FOREIGN EXCHANGE
Euro Strengthens to Two-Week High After Spain Seeks Bailout Fund
Euro Gains Seen by Stiglitz Removing $445 Billion Greek Debt
Spain's $125 Billion Rescue Gives Rajoy Best Chance to Fix Banks
Italy Enters Debt-Crisis Crosshairs After Spain Bank Rescue
Asian Currencies Gain as Spain Aid, Chinese Data Boost Sentiment
Euro Strengthens to Two-Week High After Spain Seeks Bailout Fund
The euro rose against most of its major counterparts after the region's governments agreed to provide Spain with a bailout loan, fanning expectations European leaders will step up effort to counter the debt crisis. The 17-nation currency climbed to a two-week high after Spain asked for as much as 100 billion euros ($126 billion) to rescue its banking system, making it the fourth member in the currency bloc to seek rescue.
Euro Gains Seen by Stiglitz Removing $445 Billion Greek Debt
Rather than a euro failure, an orderly Greek exit from the currency has Nobel laureate Joseph Stiglitz and Nomura Holdings Inc. chief strategist Jens Nordvig predicting a stronger and more stable monetary union. While Societe Generale SA suggests that the euro might break up because of the cost of Greece's departure, the nation accounts for just 2.3 % of the 17-nation trading bloc's GDP
Aussie, N.Z. USDs Climb to 4-Week Highs on Spanish Bailout
The Australian and New Zealand USDs climbed to their highest levels in almost four weeks as Spain's request for a bailout of its banking system revived demand for higher-yielding assets.
Source: DGCX Academy
ETFS Precious Metals Weekly: Gold futures see largest jump in speculative net long positioning in 4 and a half Years
June 11, 2012--Largest jump in gold speculative net long futures positions in 4½ years as bargain hunters step in. Although Fed Chairman Bernake's
testimony to the Congressional Joint Economic Committee last week was
non-committal on the potential for QE3, bargain hunters appeared to take
price weakness as an opportunity to accumulate net long gold futures
positions at the fastest pace since December 2008, surging 28%.
Despite the sharp rise, net longs still remain near end 2008 lows (see pg 4). The announcement over the weekend that the Eurozone has agreed to lend Spain €100bn to rescue its collapsing banking system caused most risk assets to rally Monday morning, with gold also benefiting. This week investor focus will likely be on the follow-through on the announcement, with key details and the mechanics of the package still to be revealed. Italy’s debt auctions this week will also be a key focus, to see if contagion has been halted by Spain’s package. On the data front, European industrial production and unemployment will be looked at closely as investors assess the strength of the European economy. US industrial production and CPI will also be monitored as a weakening US economy and weak inflation would increase the likelihood of the Fed moving towards QE3. Major upcoming signposts to monitor are the Greek elections on June 17th, the G20 summit on June 18/19 and the FOMC meeting statement on June 20th.
China gold imports surge over 65% in April to over 100 tonnes. Chinese gold imports from Hong Kong hit a record monthly level of over 103 tonnes in April according to the Hong Kong Census and Statistics Department. The 65% month-on-month surge in gold imports comes at a fortuitous time for the physical gold market given the recent weakness of Indian demand as a weak Rupee has continued to hold back demand.
South African platinum group metals (PGMs) production down over 28% in April compared to year-ago levels.
visit www.etfsecurities.com for more info
Source: ETF Securities
Pensions: Raising retirement ages and expanding private pension coverage essential, says OECD
June 11, 2012--Governments will need to raise retirement ages gradually to address increasing life expectancy in order to ensure that their national pension systems are both affordable and adequate, according to a new OECD report. At a time of heightened global economic uncertainty, such reforms can also play a crucial role in governments' responses to the crisis, contributing to fiscal consolidation at the same time as boosting growth.
Over the next 50 years, life expectancy at birth is expected to increase by more than 7 years in developed economies. The long-term retirement age in half of OECD countries will be 65, and in 14 countries it will be between 67 and 69. The Pensions Outlook 2012 says that increases in retirement ages are underway or planned in 28 out of the 34 OECD countries. These increases, however, are expected to keep pace with improved life expectancy only in six countries for men and in 10 countries for women. Governments should thus consider formally linking retirement ages to life expectancy, as in Denmark and Italy, and make greater efforts to promote private pensions.
Source: OECD
EPFR Global Fund Data News Release
June 8, 2012-Fund flows favor bonds, gold and whatever the BoJ is buying
The combined forces of deeply disappointing employment data in the US and another week of no clear policy consensus in Europe, along with the nagging fear that Chinese economic growth is slowing faster than previously thought, rattled global markets and encouraged investors to stay on course with the current bond buying spree while continuing to dump equities.
In the week ending June 6 EPFR Global tracked Bond Funds absorbed another $3.4 billion of inflows, their 31st consecutive weekly inflow and extending YTD total inflows to about $190 billion, a pace that is set to break the full year inflow record set in 2010. Investors were retreating from the perceived higher risk of equities as they made net withdrawals of $7.6 billion from Equity Funds during the week, the second strongest weekly outflow this year.
Japan Equity Funds again bucked the trend of equity fund outflows by recording their eighth consecutive week of inflows on the back of Bank of Japan’s asset-purchase program that includes direct purchases of domestic ETFs. And Dividend Equity Funds enjoyed continuing investor demand and posted their 44th consecutive week of inflows.
Meanwhile, Money Market Funds attracted nearly $9 billion of net inflows, but it was only European based investors feeling the love for this cash equivalent and ultra-low yielding fund vehicle, pumping in nearly $13 billion of net inflows while US domiciled Money Market Funds saw another week of substantial withdrawals. So far this year Europe domiciled funds have taken in about $38 billion of net inflows while the US domiciled funds have seen $107 billion of redemptions.
Visit http://www.epfr.com for more info.
Source: EPFR Global
FSB publishes a report entitled A Global Legal Entity Identifier for Financial Markets: FSB Report to the G20
June 8, 2012--The Financial Stability Board (FSB) today published "A Global Legal Entity Identifier for Financial Markets -FSB Report to the G20". The aim of the global Legal Entity Identifier (LEI) system is to uniquely identify counterparties to financial transactions and to provide high quality reference data on them (such as the name, address, and basic ownership information).
The FSB report responds to the mandate issued by the G20 at the Cannes Summit and will be transmitted for consideration at the forthcoming Los Cabos Summit. It sets out 35 recommendations for the development and implementation of the global LEI system. These recommendations are guided by a set of ‘High Level Principles’ which outline the objectives that a global LEI system should meet.
FSB Chairman, Mark Carney noted: “The FSB strongly supports the implementation of a global legal entity identifier system that uniquely identifies counterparties to financial transactions. This system would be a ‘building block’ for many financial stability and regulatory objectives, and it would deliver substantial benefits to financial firms.”
view FSB report-A Global Legal Entity Identifier for Financial Markets
Source: Financial Stability Board (FSB)
