Americas ETP News
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Morgan Stanley-ETFs Exhibited Net Inflows of $29.5 Billion in 2Q11
July 28, 2011--There have been 160 new ETFs listed in the US so far in 2011, of which 90 were issued in the
second quarter. So far this year, four ETFs have been liquidated, resulting in net new issuance of 156 ETFs. As of July 21, 2011, there were 35
issuers with 1,123 ETFs listed in the US.
Net inflows into US-listed ETFs were $29.5 billion during the second quarter of 2011. This number is below the average quarterly net cash
inflows of $34.7 billion over the past three years. However, we believe that $29.5 billion is a respectable number considering equity markets, as
measured by the MSCI AC World Index, only returned 0.4% this past quarter.
The largest net cash inflows this past quarter went into fixed income and emerging market equity ETFs. These asset classes had net cash inflows of $9.6 billion and $4.3 billion, respectively, in the second quarter of 2011. ETFs providing exposure to commodities had the largest net cash outflows at $2.8 billion in the second quarter. For the first half of 2011, fixed income ETFs had the highest net cash inflows at $16.1 billion followed by international developed market equity ETFs at $13.3 billion.
US ETF industry assets of $1,113 billion are 12% higher than their level at the end of 2010. Despite the growth of the ETF market, it remains concentrated with three providers and 20 ETFs accounting for almost 78% and 47% of industry assets, respectively.
ETFs Exhibited Net Inflows of $29.5 Billion in 2Q11
This number is below the average quarterly net cash inflows of $34.7 billion over the past three years.
However, we believe that $29.5 billion is a respectable number considering equity markets, as measured by the
MSCI AC World Index, only returned 0.4% this past quarter as concerns over a hard landing in China, the European
debt crisis, and the sustainability of the US recovery reduced demand for risk assets. As of July 21, 2011, ETF
total assets were at $1,113 billion, which is roughly 12% above the level at the end of 2010. In the second quarter of 2011, 90 ETFs were launched that currently have approximately $844.9 million in assets. An additional seven
ETFs have been issued since the end of the second quarter, bringing the total number of US-listed ETFs to 1,123.
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Source: Morgan Stanley
AllianceBernstein files with the SEC
July 28, 2011--AllianceBernstein has filed a second amended and restated application for exemptive relief with the SEC.
view filing
Source: SEC.gov
Pimco files with the SEC
July 28, 2011--Pimco has filed a post-effective amendment, registration statement with the SEC for the PIMCO Total Return Exchange-Traded Fund
view filing
Source: SEC.gov
CFTC Commissioner Scott D. O’Malia Seeks Public Comment on the Review of Swaps for Mandatory Clearing
July 28, 2011--On July 28, 2011, Commissioner Scott D. O’Malia of the Commodity Futures Trading Commission (CFTC) issued a letter to the public seeking comment on the manner in which the Commission should determine (i) which swaps would be subject to the clearing requirement and (ii) whether to grant a stay of a clearing requirement.
“As I stated at the July 19th meeting, market participants, as well as international regulators, have requested more transparency and clarity regarding substantive criteria for mandatory clearing determinations. I view this request for public comment as a crucial first step towards the development of such criteria. I hope that any comments received will inform a public roundtable, as well as written guidance,” Commissioner O’Malia said.
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Source: CFTC.gov
Van Eck files with the SEC
July 27, 2011--Van Eck has filed a post-effecive amendment, registration statement with the SEC for the Dim Sum Bond ETF.
view filing
Source: SEC.gov
WisdomTree Lists on NASDAQ Global Market
July 27, 2011-- WisdomTree Investments, Inc. (NASDAQ:WETF - News), an exchange-traded fund (“ETF”) sponsor and asset manager, today announced the Company listed its common stock on The NASDAQ Global Market under symbol “WETF.”
WisdomTree CEO Jonathan Steinberg said, “In 2006 we launched our first ETFs and in five years have become the 8th largest sponsor with $13.4 billion in assets and a track record of product innovation. Today’s NASDAQ listing is an important milestone and represents the next chapter of growth for the Company.”
WisdomTree Chairman Michael Steinhardt commented, “From the beginning, Jonathan and I had a shared objective of building an asset management firm with a philosophy focused on performance in the investor-friendly ETF structure. I believed then, and am further convinced today, that this powerful combination makes for a tremendous opportunity.”
Source: WisdomTree Investments, Inc
Deutsche Bank -US ETF Market Weekly Review : Market rally pushes ETP assets near all-time highs
Deutsche Bank - Equity Research - North America
July 27, 2011--ETP flows suggest that investors returned to risk – at least during last week
Last week most of the equity markets around the globe rallied driven by positive corporate earnings data and the new Greek aid package. Equity markets in the US (S&P 500) soared by 2.19%.
The total US ETP flows from all products registered $4.2bn of inflows during last week vs $1.4bn of outflows the previous week, setting the YTD weekly flows average at +$2.4bn. US ETP AUM gained $23bn, closing at $1.12 trillion or 12.5% up YTD.
Long only ETP Flows reflect the current uncertain market environment as we start Q3. US focused Equity ETPs have clearly dominated the flows and last week they added up $3.7bn in new cash. However this dominance has not been exclusive as flows have been very volatile and, at times, have swapped the leading position with Precious Metals ETP flows. We believe that although the most recent data points out to a comeback to risky assets, there are still some outstanding issues (e.g. US debt ceiling) that need to be sorted out before we could talk about long lasting trends.
Long only equity ETPs recorded $3.4bn of inflows last week vs $4.2bn of outflows the previous week. From a geographic allocation perspective, US-focused ETPs concentrated the bulk of the inflows (+$3.7bn), followed by Global ETPs with +$283m; while EM, and DM ex US ETPs experienced outflows of $452m, and $192m in the same period, respectively.
Long-only fixed Income ETPs recorded inflows of $362m last week. Corporate ETPs received $190m in inflows, followed by broad benchmarked funds with $159m. Commodity ETPs recorded inflows of $876m last week. At a sector level, Precious Metals ETPs recorded the largest inflows with $913m; while Energy ETPs registered the largest outflows with $127m.
New Launch Calendar: 2 new ETNs tracking Internet IPOs
There were 2 new ETNs listed on the NYSE Arca during last week. Both ETNs offer exposure to Internet IPOs with and without leverage respectively (See Figure 3 for more details).
Turnover Review: Floor activity declines on lower volatility
Total weekly turnover declined by 17.1% to $331bn vs. $400bn in the previous week. The largest decrease was on Equity ETP turnover which fell by $63bn or 18.1% to $284bn. Commodity ETPs turnover also dropped driven by Gold and Crude Oil with a total weekly turnover of $30.6bn last week. Similarly, Fixed Income products turnover decreased totaling $13.1bn at the end of last Friday, about 9.5% lower from the previous week.
Assets Under Management (AUM) Review: rally adds $23bn to ETP assets
Equity market gains around the globe added $23.2bn or 2.1% to US ETP assets during last week. ETP AUM almost passed the April 29th all-time high level with $1.12 trillion as of the end of last Friday; recording a $124bn (12.5%) increase on a YTD basis.
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Source: Deutsche Bank - Equity Research
Dow Jones Indexes Launches a Global Shipping Industry Index CDS on US Sovereign Debt Q&A What triggers CDS? Of course, parties are free to agree to make whichever elections they wish, but standard elections are generally used for particular transaction types (so, for example, some of the elections for North American corporates, will be different from those for, say, Western European Sovereigns).
read more Oil falls below $99 a barrel after US crude supply jump read more
Dow Jones Global Shipping Index to Measure the Performance of 25 Leading Dividend-Paying Shipping Companies
July 27, 2011--Dow Jones Indexes, a leading global index provider, today announced the launch of the Dow Jones Global Shipping Index, which measures the performance of 25 leading dividend-paying companies in the shipping industry.
The Dow Jones Global Shipping Index has been licensed to Guggenheim Funds to serve as a basis for the Guggenheim Shipping ETF.
The index universe includes all companies involved in the shipping industry globally that primarily transport goods and materials; companies solely involved in carrying passengers are excluded. A company must also have a minimum float-adjusted market capitalization of $150 million and a three-month average daily trading volume of $2 million. From this universe, the 25 stocks ranked highest by indicated annual dividend yield — subject to buffers that aim to limit unnecessary turnover — are selected for the index.
Source: Dow Jones Indexes
July 27, 2011The following are responses to the most frequently-asked questions that ISDA has received in connection with a potential CDS Credit Event on US sovereign debt. The following does not constitute legal advice, and is subject in all respects to any determination that the ISDA Americas Credit Derivatives Determinations Committee may make in relation to CDS referencing the United States. ISDA makes no comment on the likelihood of the events described in this Q&A.
How are Credit Default Swaps documented?
The vast majority of Credit Default Swaps (CDS) are documented using the 2003 ISDA Credit Derivatives Definitions, as supplemented by the July 2009 Supplement. The Definitions can be obtained from ISDA’s Bookstore.
The CDS contract contains a number of elections that parties can make (for example, which events from a menu of potential Credit Events will apply, what obligations are relevant for triggering a Credit Event, what kind of obligation will be deliverable if a Credit Event occurs).
Source: International Swaps and Derivatives Association
July 27, 2011--Oil prices fell below $99 a barrel Wednesday in Europe after a report showed US crude supplies unexpectedly jumped last week, suggesting demand may be weakening.
By early afternoon in Europe, benchmark oil for September delivery was down 73 cents to $98.86 a barrel in electronic trading on the New York Mercantile Exchange. Crude rose 39 cents to settle at $99.59 on Tuesday. In London, Brent crude fell 60 cents to $117.68 per barrel on the ICE Futures exchange. The American Petroleum Institute said late Tuesday that crude inventories rose 4.0 million barrels last week while analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had predicted a drop of 2.3 million barrels.
Source: Todays Zaman
