Global ETF News Older than One Year
Old Mutual restructuring still under review
November 5, 2009--Julian Roberts, chief executive of Old Mutual, hopes to reveal the future structure of the life assurance and banking group around the time of its 2009 results in March next year.
Analysts and investors have long expected a break-up of the group’s diverse businesses and there has been renewed speculation that Nedbank, the South African bank, is likely to be sold.
Source: FT.com
Banks face change to loan losses rule
November 5, 2009--Banks outside the US would have to report expected losses on their lending much earlier, under proposals published on Thursday by the international accounting rulemaker.
The plans represent a virtual U-turn from the current system for banks. They would allow banks to provide for expected losses over the duration of a loan, rather than, as now, waiting until the losses have occurred – a practice criticised for exacerbating the crisis by increasing the cyclicality of bank accounting.
Source: FT.com
US, EU start 'clean energy economy' talks
November 4, 2009--The United States and the European Union opened high-level talks Wednesday aimed at boosting chances of switching "to a clean, sustainable energy economy," US Energy Secretary Steven Chu said.
Cabinet ministers from both sides, in Washington for the first meeting of the US-EU Energy Council, discussed tackling energy security and markets, energy policies and regulation, energy technologies and research cooperation.
Participants said their talks will promote technological efforts to cut sharply the carbon emissions blamed for climate change as a UN-backed climate summit in Copenhagen prepares to meet next month and set new emissions targets.
Source: EU Business
US asks WTO to rule on China raw materials restrictions
November 4, 2009--The United States, joined by the EU and Mexico, asked the World Trade Organization Wednesday to rule on a dispute over Chinese restrictions on raw materials exports, officials said.
The move seeks a formal WTO panel on a complaint filed June 23 alleging China improperly restricts exports to materials to help its own manufacturers.
"We are going to the WTO today to enforce America's rights, so we can provide our country's manufacturers with a fair competitive environment," said Debbie Mesloh, a spokeswoman for the office of the US Trade Representative (USTR).
Source: EU Business
Standard & Poor’s decides 2010 weights for S&P GSCI
November 4, 2009--Standard & Poor’s has published the composition and weights for the 2010 S&P GSCI.
The S&P GSCI is a world production-weighted commodity index which, in 2010, will be composed of 24 liquid, exchange-traded futures contracts.
The S&P GSCI includes energy, industrial metals, precious metals, agricultural and livestock products.
The weights become effective with the January roll period.
Source: ETF Express
Hedge Funds Face Investor War on Fees
November 4, 2009--Institutional investors are going to gang up on "arrogant" hedge funds, a pension fund chairman warned, as investors increasingly press for changes that would link lucrative fees more closely to genuine outperformance.
A key complaint of investors has been that while many of them lost money during the financial crisis, hedge fund managers were still able to rake in millions of dollars in fees. Last year, average hedge fund returns were a minus 19 percent.
"If they want money from us they will have to offer ... alignment of interests. If hedge funds remain arrogant and not humble, I think money will go elsewhere," Philip Read, chairman of the British Coal Staff Superannuation Scheme, said on Tuesday.
Source: Reuters
RiskMetrics confirms KLD buy-out
Combined firm is biggest global ESG research house.
November 4, 2009--RiskMetrics Group, the New York-listed US risk management and corporate governance group, has confirmed a $10m acquisition of Boston-based KLD Research & Analytics, the ESG research house. The planned buyout was first reported in Responsible-Investor.com on October 13. The
The companies have not disclosed whether the deal will have any impact on staffing. RiskMetrics said the combination of the two firms would deliver increased ESG coverage, including more robust data, expert insights, and user-friendly tools.
Knut Kjaer, president of RiskMetrics Group, said: “Our clients have indicated that ESG performance is a critical benchmark of a corporation’s risks and long-term value. KLD’s ESG capabilities, combined with our financial risk and corporate governance experience, will give investors worldwide a more thorough picture of sustainability and risk across geographic and industry boundaries.” The KLD acquisition is RiskMetrics’ second major buyout this year in the ESG (environmental, social and governance) space after it bought Innovest, the SRI research house in February.
Source: Responsible Investor
Investors and stock exchanges discuss ESG listings ‘comply or explain’ at UN headquarters
UNCTAD backs PRI calls for ESG exchange disclosure.
November 4, 2009--UN Secretary General Ban-ki Moon, this week kicked off a high-level meeting at the UN headquarters in New York between major institutional investors including the Norwegian Global Pension Fund and France’s national pensions reserve fund (FRR) and global stock exchange executives in New York to look at ways of tightening up environmental, social and governance criteria for company listings.
Among discussion topics at the UNPRI-organised event, was the introduction of a ‘comply or explain’ requirement for companies to put an annual sustainability report to a shareholder vote at their annual general meetings.
Some countries already oblige companies to include a description of their corporate responsibility activities and practices in their Annual Reports or, if there are none, a make statement to this effect.
Speakers at the UN event included Serge Harry, executive vice president and deputy head of strategy at NYSE Euronext, Paul Abberley, chief executive at Aviva Investors and Peter Clifford of the World Federation of Stock Exchanges.
Abberley said he hoped the event would be “catalytic” in promoting more sustainable business behaviour. Aviva called last year for a debate on how listing authorities could promote corporate transparency.
Source: Responsible Investor
Semi-Annual Changes to the NASDAQ OMX CRD Global Sustainability 50 Index
October 4, 2009--On Monday, November 2nd, NASDAQ OMX and CRD Analytics, LLC announced the results of the semi-annual evaluation of the NASDAQ OMX CRD Global Sustainability 50 Index (QCRD).
CRD Analytics screens more than 3,000 global corporations across all sectors for over 200 financial and ESG performance metrics to rank the companies in the index. "This larger universe led to an almost 50% turnover in the top 50 leaders, attributable to better disclosure from firms adopting the Global Reporting Initiative G3 Guidelines and the increase in asset managers and owners signing the U.N. Principles for Responsible Investing," said Michael Muyot, CRD Analytics President.
QCRD is an equally weighted equity index that serves as a benchmark for stocks of companies that are taking a leadership role in sustainability performance reporting and are traded on a major U.S. stock exchange.
"This Index ensures that investors can track a relevant benchmark that is comprised of high performing companies that are committed to environmental, social and governance issues," said John Jacobs, NASDAQ OMX Executive Vice President.
The Index is comprised of companies that comprehensively disclose their carbon footprint, energy usage, water consumption, hazardous and non-hazardous waste, employee safety, workforce diversity, management composition and community investing. Securities of component companies must also meet other eligibility criteria, including minimum requirements for market value, average daily share volume and price.
For more information on the NASDAQ OMX CRD Global Sustainability 50 Index, including a list of companies in the Index, please contact Rob Hughes at +1 212 401 8987 or Robert.hughes@nasdaqomx.com.
Source: NASDAQ OMX
CME Group Volume Averaged 10.8 Million Contracts per Day in October 2009, Up 2 Percent from September 2009
Highest first month of a quarter volume to date in 2009
- Double-digit year-over-year growth in FX, energy and metals
- Highest monthly energy and metals volumes to date in 2009
- Record non-roll month average daily notional value traded in FX of $99 billion
- Best year-over-year performance to date in 2009 for interest rates
November 3, 2009--CME Group, the world's largest and most diverse derivatives marketplace, today announced that October volume averaged 10.8 million contracts per day, down 13 percent from October 2008, but up 2 percent from September 2009. Total volume was 237 million contracts for October, of which 82 percent was traded electronically, and represented the highest first month of a quarter volume to date in 2009.
Electronic volume averaged 8.9 million contracts per day, down 11 percent from the prior October, but up 3 percent compared with September 2009. Average daily volume cleared through CME ClearPort was 559,000 contracts for October 2009, up 16 percent compared with October 2008, and up 14 percent sequentially. CME Group year-to-date volume through October averaged 10.3 million contracts per day.
In October, CME Group interest rate volume demonstrated the best year-over-year growth so far in 2009, averaging 4.5 million contracts per day, down only 2 percent compared with October 2008, but up 2 percent compared with the prior month. Eurodollar futures volume averaged 1.8 million contracts per day, up 4 percent versus October 2008, and Treasury futures volume averaged 1.8 million contracts per day, up 12 percent compared with the same period a year ago. CME Group equity index volume averaged 2.8 million contracts per day, down 43 percent compared with October 2008. CME Group foreign exchange (FX) volume experienced its highest non-roll month to date in 2009, up 33 percent compared with the prior October to average 747,000 contracts per day, reflecting average daily notional value of approximately $99 billion, a record for a non-roll month.
Source: CME Group
