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* New Report * ETF Landscape Industry Review July 2010
August 31, 2010--Current ETF and ETP landscape, as at end July 2010
Global
At the end of July 2010 the global ETF industry had 2,282 ETFs
with 4,872 listings, assets of US$1,095.2 Bn, from 124 providers
on 42 exchanges around the world.
YTD assets increased by 5.7%, compared to the the 3.7%
decrease in the MSCI World Index in US dollar terms.
The top 100 ETFs, out of 2,282, account for 63.9% of global
ETF AUM, while 1,187 ETFs have less than US$50.0 Mn in assets
and 457 ETFs have less than US$10.0 Mn in assets.
YTD the number of ETFs increased by 17.3% with 368 new ETFs launched, while 33 ETFs were delisted.
The number of ETFs listed in Europe surpassed the US in April 2009, now with 969 ETFs listed in Europe, compared to 866 in the US at end July 2010.
There are currently plans to launch 970 new ETFs.
YTD the number of exchanges with official listings increased from 40 to 42.
YTD the average daily trading volume in US dollars increased by 30.9% to US$66.4 Bn.
MSCI ranks first in terms of ETF AUM tied to its benchmarks with assets of US$263.9 Bn and 323 ETFs, while Standard & Poor’s (S&P) ranks second with US$244.3 Bn and 277 ETFs, followed by Barclays Capital with US$110.3 and 78 ETFs.
Globally, iShares is the largest ETF provider in terms of both number of products, 453 ETFs, and assets of US$506.8 Bn, reflecting 46.3% market share; State Street Global Advisors is second with 110 products and US$153.3 Bn, 14.0% market share; followed by Vanguard with 47 products and assets of US$113.1 Bn and 10.3% market share at the end of July 2010.
The top three ETF providers, out of 124, have 70.6% market share.
Globally, net sales of mutual funds (excluding ETFs) were minus US$283.3 Bn, while net sales of ETFs were positive US$71.3 Bn during the first six months of 2010 according to Strategic Insight.
Additionally, there were 849 other Exchange Traded Products (ETPs) with 1,415 listings and assets of US$128.6 Bn from 47 providers on 20 exchanges.
Combined, there were 3,131 products with 6,287 listings, assets of US$1,223.7 Bn from 150 providers on 45 exchanges around the world at the end of July 2010.
Knight Direct Joins ExNet By Orc Software For Global Market Access
August 31, 2010--Swedish company Orc Software AB (STO: ORC) said today that US firm Knight Direct, part of financial services firm Knight Capital Group (NYSE: KCG | PowerRating), has jointed the Orc ExNet broker connectivity network to offer algorithmic execution services and market access to clients.
The partnership allows Orc Software's users to trade securities directly via Knight Direct, and provides access to the latter's extensive set of execution algorithms.
By joining Orc ExNet, Knight Direct is able to offer its suite and global market access to an even wider community of traders, managing director at a Knight Capital's subsidiary Bradley Duke said.
Orc ExNet provides hedge funds, proprietary traders, and other advanced traders with non-membership access to major liquidity pools worldwide, including official exchanges and electronic communication networks (ECNs).
Annual inflation in OECD area edges up to 1.6% in July 2010
August 31, 2010--Consumer prices in the OECD area rose by 1.6% in the year to July 2010, up from 1.5 % in June. This small increase mainly reflected developments in energy and food prices, which increased by 6.2% and 1.1% respectively in the year to July, compared with rises of 4.7% and 0.6% in June.
Excluding food and energy, consumer prices rose by 1.2% in the year to July 2010, down from 1.3%
in June.
Deflation continued in Japan where consumer prices fell by 0.9% in the year to July, compared with a decline of 0.7% in June. Inflation rose in all other G7 countries except the United Kingdom, where annual inflation was 3.1% in July down from 3.2% in June. In Canada, inflation was 1.8% in the year to July, up from 1.0% in June. In France, inflation was 1.7% in July, up from 1.5% in June. Prices rose 1.7% in Italy in July, up from 1.3% in June. In Germany, prices rose 1.2% in July, up from 0.9% in June. Inflation was 1.2% in the United States in July, up from 1.1% in June. Euro area annual inflation (HICP) was 1.7% in July up from 1.4% in June.
Investors Pull $7.1 Billion From Stock Funds Globally
August 27, 2010--Investors withdrew a net $7.1 billion from equity funds tracked worldwide in the week to Aug. 25 and put some $5.2 billion into bonds amid concern economies in the U.S. and Europe are losing momentum, EPFR Global said.
A net $5.4 billion was redeemed from U.S. stock funds, while inflows into emerging markets were the lowest in 13 weeks, EPFR said in an e-mailed statement. Developing-nation bond funds took in $1 billion, on course for a record-setting year, while U.S. bond funds drew $2.5 billion, according to the Cambridge, Massachusetts-based research firm.
* New Report * ETF Landscape Industry Review July 2010
August 26, 2010--Current ETF and ETP landscape, as at end July 2010
Global
At the end of July 2010 the global ETF industry had 2,282 ETFs
with 4,872 listings, assets of US$1,095.2 Bn, from 124 providers
on 42 exchanges around the world.
YTD assets increased by 5.7%, compared to the the 3.7%
decrease in the MSCI World Index in US dollar terms.
The top 100 ETFs, out of 2,282, account for 63.9% of global
ETF AUM, while 1,187 ETFs have less than US$50.0 Mn in assets
and 457 ETFs have less than US$10.0 Mn in assets.
YTD the number of ETFs increased by 17.3% with 368 new ETFs launched, while 33 ETFs were delisted.
The number of ETFs listed in Europe surpassed the US in April 2009, now with 969 ETFs listed in Europe, compared to 866 in the US at end July 2010.
There are currently plans to launch 970 new ETFs.
YTD the number of exchanges with official listings increased from 40 to 42.
YTD the average daily trading volume in US dollars increased by 30.9% to US$66.4 Bn.
MSCI ranks first in terms of ETF AUM tied to its benchmarks with assets of US$263.9 Bn and 323 ETFs, while Standard & Poor’s (S&P) ranks second with US$244.3 Bn and 277 ETFs, followed by Barclays Capital with US$110.3 and 78 ETFs.
Globally, iShares is the largest ETF provider in terms of both number of products, 453 ETFs, and assets of US$506.8 Bn, reflecting 46.3% market share; State Street Global Advisors is second with 110 products and US$153.3 Bn, 14.0% market share; followed by Vanguard with 47 products and assets of US$113.1 Bn and 10.3% market share at the end of July 2010.
The top three ETF providers, out of 124, have 70.6% market share.
Globally, net sales of mutual funds (excluding ETFs) were minus US$283.3 Bn, while net sales of ETFs were positive US$71.3 Bn during the first six months of 2010 according to Strategic Insight.
Additionally, there were 849 other Exchange Traded Products (ETPs) with 1,415 listings and assets of US$128.6 Bn from 47 providers on 20 exchanges.
Combined, there were 3,131 products with 6,287 listings, assets of US$1,223.7 Bn from 150 providers on 45 exchanges around the world at the end of July 2010.
Can Global Liquidity Forecast Asset Prices?-IMF Working paper
August 25, 2010--During the period leading up to the global financial crisis many asset classes registered rapid price increases. This coincided with a significant rise in global liquidity. This paper attempts to determine the extent to which the rise in asset prices was influenced by developments in global liquidity.
We confirm that global liquidity had a significant impact on the buildup in house prices; however, the impact on equity prices was limited. In contrast to common perception, we find that the impact of global liquidity declined during the period of the Great Moderation. The paper also examines spillovers from global liquidity to domestic variables and concludes that domestic factors generally played a more significant role in house price appreciation relative to global factors. This contradicts the hypothesis of weakened potency of domestic monetary policy in the presence of increased international liquidity.
Islamic Banking: How Has it Diffused?-IMF Working Paper
August 25, 2010--This paper investigates the determinants of the pattern of Islamic bank diffusion around the world using country-level data for 1992 - 2006. The analysis illustrates that income per capita, share of Muslims in the population and status as an oil producer are linked to the development of Islamic banking, as are economic integration with Middle Eastern countries and proximity to Islamic financial centers. Interest rates have a negative impact on Islamic banking, reflecting the implicit benchmark for Islamic banks.
The quality of institutions does not matter, probably because the often higher hurdle set by Shariah law trumps the quality of local institutions in most countries. The 9/11 attacks were not important to the diffusion of Islamic banking; but they coincided with rising oil prices, which are a significant factor in the diffusion of Islamic banking. Islamic banks also appear to be complements to, rather than substitutes for, conventional banks.
August 2010 “Islamic Market’s Measure” - Preliminary Report - Monthly Report On The Performance Of The Dow Jones Islamic Market Indexes
August 25, 2010--Based on the close of trading on August 24 the global Dow Jones Islamic Market Titans 100 Index, which measures the performance of 100 of the leading Shari’ah compliant stocks globally, dropped -3.45% month-to-date, closing at 1888.71. In comparison, the Dow Jones Global Titans 50 Index, which measures the 50 biggest companies worldwide, posted a loss of -3.65%, closing at 152.75.
The Dow Jones Islamic Market Asia/Pacific Titans 25 Index, which measures the performance of 25 of the leading Shari’ah compliant stocks in the Asia/Pacific region, decreased -1.79%, closing at 1799.33. The Dow Jones Asian Titans 50 Index, in comparison, posted a loss of -2.07%, closing at 125.68.
Measuring Europe, the Dow Jones Islamic Market Europe Titans 25 Index, which measures the performance of the 25 of the leading Shari’ah compliant stocks in Europe, closed at 1827.21, a loss of -3.15%, while the conventional Dow Jones Europe Index loss -4.91%, closing at 230.04.
IMF economists criticise CDS model
August 24, 2010--One of the main tools used by investors and policymakers to predict whether a company may default on its debt is riddled with problems, making it a potentially ineffective gauge for measuring the risks of large banks, according to International Monetary Fund economists.
Bank credit default swaps – which offer investors protection in the event of a default – were closely watched during the financial crisis with some critics arguing that they tipped some groups closer to collapse. But a recent working paper by Manmohan Singh and Karim Youssef, economists at the IMF, argues that they offer a flawed model for policymakers looking at potential losses and contagion among large banks in times of financial stress.
view the working paper-Price of Risk—Recent Evidence from Large Financials
S&P launches world’s first index for preferred stock on European and Asian markets
August 24, 2010--The first index dedicated to providing investors with exposure to preferred stock in developed European and Asian markets, has been announced.
Standard & Poor’s International Preferred Stock Index has been launched in response to demand for an investable benchmark of non US developer market preferred stocks and the high yields and diversifications that they can provide.
S&P, the world’s leading index provider, said the move creates first benchmark for international preference shares and follows last week’s launch of the S&P/TSX North American Preferred Stock Index, dedicated to North American preferred stocks.
Preferred stocks, or preference share, are a class of securities that combine the characteristics of debt and common stocks. While their expected volatility and returns fall between those of common stocks and bonds, their yields are typically higher than those of common stocks, bonds and money market instruments. With relatively low correlations to common stocks and bonds, they can serve as a good diversification instrument for investors.
‘Market conditions make this index, the first of its type, ideal for investors who are searching for higher yields at a time of historically low interest rates worldwide. The S&P International Preferred Stock Index will open up new avenues to access this increasingly sought after area of the market in Europe and Asia,’ said Steve Goldin, vice president of Strategy Indices at S&P Indices.
