Global ETF News Older than One Year
NYSE Euronext And APX Complete Transaction And Form NYSE Blue
NYSE Blue will operate leading environmental exchanges while providing governments and corporations with the tools and solutions to adapt to the changing energy markets.
February 22, 2011--NYSE Euronext (NYX) today announced the completion of its transaction with APX, Inc. to create NYSE BlueSM, a new global company with an exclusive focus on environmental and sustainable energy markets.
NYSE Euronext contributes its ownership in BlueNext in return for a majority interest in NYSE BlueSM. The transaction has been approved by regulators and APX shareholders, who will retain a minority stake in NYSE Blue in return for their shares in APX. BlueNext is one of the world's leading spot markets in carbon credits, and APX is a leading provider of market infrastructure and services for the environmental and sustainable energy markets. Brian Storms, who served as Chairman and CEO of APX, is the new Chairman and CEO of NYSE Blue.
Source: NYSE Euronext
Dow Jones Indexes To Launch Dow Jones Islamic Market Global Finance & Takaful Index
February 22, 2011-- Dow Jones Indexes, a leading global index provider, today announced it will expand its Dow Jones Islamic Market Indexes series by launching the Dow Jones Islamic Market Global Finance & Takaful Index, which measures the performance of financial services stocks that pass rules-based screens for Shari’ah compliance. (Insurance stocks that pass such screens are known as Takaful.)
The index, designed to provide broader coverage of the Shari’ah-compliant financial services sector, will serve as a benchmark and an underlying instrument for investment products such as mutual funds and exchange-traded funds (ETFs).
“The Dow Jones Islamic Market Indexes is a unique series that combines faith-based principles and benchmarking,” said Michael A. Petronella, president, Dow Jones Indexes. “Our index family was the first to market and has clearly set the standards of Islamic indexing around the world. And, once again, with the launch of the Dow Jones Islamic Market Global Finance & Takaful Index, we are providing the market with the first benchmark of its kind for these combined sectors.”
Eligible companies are banks, insurance and financial services companies. Included in the index are those stocks that pass financial ratio screens that are less than 33% in total debt, divided by trailing 24-month average market capitalization; cash plus interest-bearing securities, divided by trailing 24-month average market capitalization; and accounts receivables, divided by trailing 24-month average market capitalization.
Source: Dow Jones Indexes
Measuring Energy Security: Trends in the Diversification of Oil and Natural Gas Supplies-IMF Working paper
February 22, 2011--We present evidence on one facet of energy security in OECD economies - the extent of diversification in sources of oil and natural gas supplies. Viewed from the perspective of the energy-importing countries as a whole, there has not been much change in diversification in oil supplies over the last decade, but diversification in sources of natural gas supplies has increased steadily.
We document the cross-country heterogeneity in the extent of diversification. We also show how the extent of diversification changes if account is taken of the political risk attached to suppliers; the size of the importing country; and transportation risk.
Source: IMF
Libya turmoil sets oil surging
February 21, 2011--Oil prices charged to fresh 2-1/2 year highs on Monday as traders reacted to increasing violence in major producer Libya, which fed investor fears about rising inflation and unsettled other markets.
Globally, equities were lower and there was no input from US markets, where there was a holiday.
Source: FIN24
DB Global Equity Index & ETF Research :Migration into equities continues, with US broad equity and European sector ETF flows showing strength
February 21, 2011--Investment Outlook: US equity indices & European sectors the big equity ETF winners so far this year
The week that finished on February 11th 2011 registered €721 million of inflows, largely driven by equity (€492 million) and, to a lesser extent, commodity flows (€295 million). Fixed income continued to bleed assets, losing €142 million for the week, largely out of sovereign benchmarked ETFs.
Developed non-European equity indices (especially the US S&P 500, MSCI USA and Nasdaq 100 indices) continue to be the biggest beneficiaries of ETF equity flows. This week saw inflows into US indices totaling close to half a billion, while inflows to comparable European equity indices were roughly half of that. Year to date, non-European developed market equity indices (primarily US) have gathered €1.9 billion while comparable European country and regional indices gathered €768 million.
European sectors have also had a very good run, gathering €1.1 billion year to date. Insurance and financial services were the biggest beneficiary with €306 million. Technology and Oil and gas followed with €145 and €141 respectively. The remainder was roughly equally divided among a variety of sectors, signaling an overall sector investing bias rather than strong preference for a single sector.
Commodities received €295 million in cash inflows in the week just passed. Broad commodity benchmarks made up for the bulk of the inflows with €186 million of new capital entering the market. Year to date commodity cash flows are flat with €51 net inflows. This is primarily due to gold outflows, the European commodity ETP sector’s biggest segment lost €614 million so far this year, a theme that is consistent with the return of investors to the equity market.
New Product Launch Calendar: 10 new product launches in the last week
Ten new products were launched and three new listings were introduced into the European ETP market in the past week.
ETFLab launched four ETFs tracking the newly created Euro French government bond Deutsche Börse indices. These were listed on the Deutsche Börse.
Credit Suisse introduced two money market ETFs tracking the Credit Suisse EONIA Total Return (€) index and the Credit Suisse Fed Funds (US$) Effective Rate Total Return index. The same issuer also launched two equity ETFs tracking the MSCI World and the Credit Suisse Alternative Energy indices. All four ETFs were listed on the Swiss Stock Exchange.
UBS launched two equity ETFs, on Deutsche Börse, tracking US benchmarks, namely the S&P 500 and MSCI USA TR index. The secondary share classes of these funds were also listed on the Deutsche Börse.
Assets Under Management (AUM): Modest increase led by inflows
Total European ETP assets increased by 0.6% and ended the week at €237.1 billion.
Equity ETF assets contributed largely to the overall asset increase, adding €1.2 billion from the prior week, reaching €155.4 billion. Most of this increase (60%) is attributed to rising equity markets as most major European benchmarks ended the week on a positive note. Germany’s DAX experienced the highest increase among its peers and rose by 2.2% week on week. The French CAC index, UK’s FTSE 100 and the Euro Stoxx 50 indices were up by 1.3%, 1.1% and 0.7% respectively.
Fixed Income assets experienced a slight decline of 0.5% and closed the week at €41.6 billion. Sovereigns contributed largely to overall decline with a decrease of €203 million week on week. Year to date sovereign assets are down by €1.4 billion.
Cash inflows in broad commodity benchmarks (€186 million) and price appreciation in the precious metals sector, notably the spot price of gold (up 0.4%) and silver (up 1.8%), led to European commodity assets increasing by 1.1% and reaching €37.6 billion.
On-Exchange Total Weekly Turnover: Commodity and fixed income decline
On exchange ETP Total turnover declined by 4.2%, to € 11.3 billion for the week ended on February 11th 2011. Fixed Income and commodities together, contributed largely to the decrease by shaving off close to €600 million. Equity total turnover remained relatively flat week on week at €8.6 billion.
To request a copy of the report
Source: Source: Deutsche Bank Global Equity Index & ETF Research
Exchanges asked to crack down on 'inadequate' reporting
February 21, 2011--Institutional investors with a total of $1.6trn (€1.2trn) in assets under management have written to 30 of the world's largest stock exchanges asking them to address inadequate sustainability reporting by listed companies.
Based on Bloomberg data, the letter also ranks individual listing authorities on a sustainability league table that assesses the current level of environmental social and governance (ESG) disclosure among listed companies.
Source: IP&E
Cowen Group to acquire LaBranche for $192.8m
February 18, 2011--Diversified financial services firm Cowen Group has agreed to acquire LaBranche, a former New York Stock Exchange floor specialist, for approximately $192.8m.
As per the terms of the agreement, LaBranche shareholders will receive upon closing a fixed ratio of 0.9980 of a share of Cowen Class A common stock for each their outstanding common stock.
Source: BBR Prime Brokerages
Trade pact is 'win-win' for South Korea, EU
February 18, 2011-- A sweeping free trade agreement between South Korea and the European Union is a "win-win" deal for both parties, an EU diplomat said Friday after Europe's parliament approved the deal.
The parliament in Strasbourg voted 465-128 for the pact Thursday after securing safeguards to protect Europe's auto industry from tough South Korean rules on fuel efficiency and CO2 emissions.
Source: Eubusiness
BM&FBOVESPA: Memorandum of Understandings (MoU) with Shanghai Stock Exchange will not cover cross listing of company´s stocks
February 18, 2011--Bolsa de Valores, Mercadorias e Futuros (the "Company") announces that, on February 21st, 2011, BM&FBOVESPA and Shanghai Stock Exchange (SSE) will sign a MoU in order to start discussions regarding business opportunities and information exchange.
Unlike articles released by national and international press, this MoU will not cover cross listing of company´s stocks listed in the two exchanges.
Source: WFE
Investing in Public Investment: An Index of Public Investment Efficiency-IMF Working paper
February 17, 2011--Summary: This paper introduces a new index that captures the institutional environment underpinning public investment management across four different stages: project appraisal, selection, implementation, and evaluation.
Covering 71 countries, including 40 low-income countries, the index allows for benchmarking across regions and country groups and for nuanced policy-relevant analysis and identification of specific areas where reform efforts could be prioritized. Potential research venues are outlined.
Investing in Public Investment: An Index of Public Investment Efficiency=IMF working paper
Source: IMF
