Global ETF News Older than One Year
MSCI Indices Q2 2012 Performance Results-Volatile Global Markets Generate Losses
Global markets produced almost universally negative returns, eroding the semblance of recovery glimpsed in Q1 2012
Only a handful of individual Emerging and Frontier Markets countries posted modest positive returns
High volatility prevailed
July 6, 2012--MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools worldwide, including indices, portfolio risk and performance analytics and corporate governance services, today published the Q2 2012 performance of its MSCI Global Equity Indices, revealing widespread negative returns across global markets.
These results significantly pared back the positive gains of Q1 2012; however, year-to-date (YTD) 2012 global market returns for the most part remained in modest positive territory. Major financial markets worldwide showed negative returns across all size segments in Q2 2012. MSCI ACWI IMI, comprised of close to 9,000 large, mid and small cap securities across 24 Developed and 21 Emerging Markets countries, for example, delivered a negative return of -6.44% for the quarter, resulting in a YTD 2012 return of 4.37%1.
Source: MSCI
Global Foreign Direct Investment losing momentum in 2012, though prospects for 2013 and 2014 are cautiously optimistic, UNCTAD Report says
Investment inflows climbed 16 per cent in 2011, World Investment Report 2012 finds, but economic uncertainty around world now making itself felt
July 5, 2012--Global foreign direct investment (FDI) inflows rose 16 per cent in 2011, surpassing the 2005-2007 pre-crisis level for the first time, despite the continuing effects of the global financial and economic crisis and the current debt crisis in Europe, UNCTAD's annual survey of investment trends reports.
The World Investment Report 20121 , subtitled “Towards a New Generation of Investment Policies”, was released today.
A resurgence of economic uncertainty and the possibility of lower growth rates in major emerging markets risk undercutting FDI in 2012, the report contends. UNCTAD predicts the growth rate of FDI will slow in 2012, with flows levelling off at around $1.6 trillion. Leading indicators are suggestive of this trend, with the value of both cross-border mergers and acquisitions and greenfield investments retreating in the first five months of 2012.
UNCTAD projections for the medium term based on macroeconomic fundamentals continue to show FDI flows increasing at a moderate but steady pace, reaching $1.8 trillion in 2013 and $1.9 trillion in 2014, barring any macroeconomic shocks. Investor uncertainty on the course of economic events for this period is still high, with UNCTAD’s annual survey of executives of transnational corporations (TNCs) finding that roughly half of respondents are either neutral or undecided about the state of the global investment climate in 2012.
view the UN report-World Investment Report 2012
Source: UN
IMF Working paper-International Capital Flows and Debt Dynamics
July 5, 2012--Summary: This paper presents a new model for studying international capital flows and debt dynamics that emphasizes the role played by expectations concerning future trade flows and returns. I use the model to estimate the drivers of the U.S. external position and capital flows between 1973 and 2008.
The estimates show that most of the secular rise in U.S. international indebtedness is attributable to growing optimism about future returns on U.S. holdings of foreign equity and FDI assets. They also show that the transformation of world savings into risky assets by the U.S. had little effect on its external position, but the expected future real depreciation of the dollar allowed the U.S. to sustain a higher level of international debt after the 1990s.
view the IMF Working paper-International Capital Flows and Debt Dynamics
Source: IMF
IMF Working paper-Equity Returns in the Banking Sector in the Wake of the Great Recession and the European Sovereign Debt Crisis
July 5, 2012--Summary: This study finds that equity returns in the banking sector in the wake of the Great Recession and the European sovereign debt crisis have been driven mainly by weak growth prospects and heightened sovereign risk and to a lesser extent, by deteriorating funding conditions and investor sentiment.
While the equity return performance in the banking sector has been dismal in general, better capitalized and less leveraged banks have outperformed their peers, a finding that supports policymakers’ efforts to strengthen bank capitalization.
Source: IMF
IEA sees renewable energy growth accelerating over next 5 years
July 5, 2012--Renewable power generation is expected to continue its rapid growth over the next five years, according to a new report from the International Energy Agency (IEA) that acknowledges the coming-of-age of the renewable energy sector. The report says that despite economic uncertainties in many countries, global power generation from hydropower, solar, wind and other renewable sources is projected to increase by more than 40% to almost 6 400 terawatt hours (TWh)-or roughly one-and-a-half times current electricity production in the United States.
The study, released today, marks the first time the IEA has devoted a medium-term report to renewable power sources, a recognition of the dynamic and increasing role of renewable energy in the global power mix. The study examines in detail 15 key markets for renewable energy, which currently represent about 80% of renewable generation, while identifying and characterising developments that may emerge in other important markets. It completes a series of IEA medium-term market reports also featuring oil, natural gas and coal. Like the others, it presents a forecast of global developments and detailed country projections over the next five years.
Source: International Energy Agency (IEA)
NYSE Euronext to Launch Retail Liquidity Program
Retail investor trades to benefit from price improvement on the NYSE and NYSE MKT
July 5, 2012-NYSE Euronext (NYX) has received approval from the U.S. Securities and Exchange Commission (SEC) to establish a first-of-its-kind Retail Liquidity Program, a market innovation that produces cost savings for individual investors through price improvement on retail equities trading order flow for New York Stock Exchange (NYSE) and NYSE MKT listed and NASDAQ UTP-traded equity securities.
The Retail Liquidity Program is complementary to existing marketplace offerings for retail investors and is intended for use by retail brokerage firms directly and market intermediaries that service retail order flow providers. NYSE Euronext expects to activate the RLP on both the NYSE and NYSE MKT markets on Aug. 1, 2012.
Source: NYSE Euronext
ETFGI Global ETF and ETP industry insights, Q2 2012
July 5, 2012--Summary for ETFs listed globally
At the end of Q2 2012, the global ETF industry had 3,309 ETFs, with 7,353 listings, assets of US$1,503 Bn, from 171 providers on 50 exchanges.
Assets
ETF assets have increased by 4.0% from US$1,445 Bn in May 2012 to US$1,503 Bn in June 2012.
YTD through end of Q2 2012, ETF assets have increased by 11.1% from US$1,353 Bn to US$1,503 Bn.
Flows
In June 2012, ETFs saw net inflows of US$18,571 Mn. YTD through end of Q2 2012, ETFs saw net inflows of US$99,800 Mn.
iShares gathered the largest net ETF inflows in June with US$6,504 Mn, followed by SPDR ETFs with US$4,204 Mn and PowerShares with US$1,730 Mn net inflows.
Vanguard gathered the largest net ETF inflows YTD with US$29,925 Mn, followed by iShares with US$24,929 Mn and SPDR ETFs with US$10,107 Mn net inflows.
Van Eck Associates Corp experienced the largest net outflows in June with US$369 Mn.
db x-trackers experienced the largest net outflows YTD with US$1,428 Mn, followed by Commerzbank with US$875 Mn and Lyxor Asset Management with US$857 Mn net outflows.
Summary for ETFs and ETPs listed globally
Including other Exchange Traded Products (ETPs), the global ETF/ETP industry had 4,684 ETFs/ETPs, with 9,443listings, assets of US$1,682 Bn, from 202 providers on 54 exchanges.
Assets
ETF/ETP assets have increased by 3.9% from US$1,619 Bn in May 2012 to US$1,682 Bn in June 2012.
YTD through end of Q2 2012, ETF/ETP assets have increased by 10.2% from US$1,526 Bn to US$1,682 Bn.
Flows
In June 2012, ETFs/ETPs saw net inflows of US$21,483 Mn. YTD through end of Q2 2012, ETFs/ETPs saw net inflows of US$106,940 Mn.
iShares gathered the largest net inflows in June with US$6,788 Mn, followed by SPDR ETFs with US$4,706 Mn and PowerShares with US$1,730 Mn net inflows.
Vanguard gathered the largest net inflows YTD with US$29,925 Mn, followed by iShares with US$25,467 Mn and SPDR ETFs with US$11,672 Mn net inflows.
Van Eck Associates Corp experienced the largest net outflows in June with US$369 Mn.
DB/x-trackers experienced the largest net outflows YTD with US$1,621 Mn, followed by Commerzbank with US$875 Mn and Lyxor Asset Management with US$857 Mn net outflows.
Summary for United States ETFs and ETPs
At the end of Q2 2012, the US ETF industry had 1,183 ETFs, assets of US$1,054 Bn, from 34 providers on 3 exchanges. Including other Exchange Traded Products (ETPs), the US ETF/ETP industry had 1,476 ETFs/ETPs, assets of US$1,179 Bn, from 52 providers on 3 exchanges.
Summary for European listed ETFs and ETPs
At the end of Q2 2012, the European ETF industry had 1,334 ETFs, with 4,708 listings, assets of US$277 Bn, from 39 providers on 21 exchanges. Including other Exchange Traded Products (ETPs), the European ETF/ETP industry had 1,932 ETFs/ETPs, with 5,933 listings, assets of US$311 Bn, from 45 providers on 22 exchanges.
Summary for Asia Pacific (ex-Japan) listed ETFs and ETPs
At the end of Q2 2012, the Asia Pacific (ex-Japan) ETF industry had 376 ETFs, with 491 listings, assets of US$66 Bn, from 86 providers on 14 exchanges. Including other Exchange Traded Products (ETPs), the Asia Pacific (ex-Japan) ETF/ETP industry had 395 ETFs/ETPs, with 513 listings, assets of US$67 Bn, from 88 providers on 14 exchanges.
Summary for Latin America listed ETFs and ETPs
At the end of Q2 2012, the Latin American ETF industry had 35 ETFs, with 506 listings, assets of US$10 Bn, from 16 providers on 4 exchanges. Including other Exchange Traded Products (ETPs), the Latin American ETF/ETP industry had 35 ETFs/ETPs, with 535 listings, assets of US$10 Bn, from 19 providers on 4 exchanges.
For further information please contact: deborah.fuhr@etfgi.com
Source: ETFGI
Record sums being injected into ETPs
July 4, 2012--Investors are pumping record sums into exchange traded products investing in assets such as bonds, vehicles that track a basket of assets, as they try to avoid equity volatility caused by the eurozone crisis and fears over the global economy.
Inflows into ETPs, which mainly offer exposure to baskets of equities, bonds or commodities, attracted new net assets of more than $100bn in the first half of the year for the first time since the industry emerged in the late 1980s, according to BlackRock’s ETP Landscape team.
Source: FT.com
Top Officials at Barclays Resign Over Rate Scandal .
July 4, 2012--A scandal over interest-rate manipulation reached the upper echelons of British banking and government, as the chief executive of Barclays PLC resigned and the bank released documents that threaten to drag Bank of England and U.K. government officials into the affair.
Robert Diamond, the American CEO of Barclays, stepped down from his post a day after the bank's chairman, Marcus Agius, resigned. A top deputy to Mr. Diamond, Chief Operating Officer Jerry del Missier, also stepped down.
Mr. Agius will stay on temporarily to run the bank and help find a new chairman and a CEO. Mr. Diamond's resignation was effective immediately
Source: Wall Street Journal
IOSCO-Global Developments in Securitization Regulation Consultation Report
July 4, 2012--I Introduction
In response to a request from the G20, the Financial Stability Board (FSB) has been developing recommendations to strengthen oversight and regulation of the shadow banking system.
As part of this work the FSB agreed to assess the case for action in respect of a number of areas, including regulation of securitization. Based on the FSB's decision, the Financial Stability Board’s Standing Committee on Supervisory and Regulatory Cooperation (FSB SRC) requested IOSCO to, in coordination with the Basel Committee on Banking Supervision, conduct a stock-taking exercise in relation to requirements for risk retention and measures enhancing transparency and standardisation of securitisation products, and to develop policy recommendations as necessary.
view the Global Developments in Securitization Regulation Consultation Report
Source: IOSCO
