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Capped Component Version of S&P GSCI Single Commodity Family Launched by S&P Dow Jones Indices
October 17, 2013--&P Dow Jones Indices announced today the launch of a family of indices based on the S&P GSCI(R) Single Commodities that applies the Capped Component rules according to the ESMA guidelines on UCITS issues.
Currently, the S&P GSCI includes 24 commodities that form 18 components, where three of the components, Petroleum, Wheat, and Cattle, include more than one commodity. For every S&P GSCI Single Capped Component, the namesake commodity is allocated 32%, with the remaining 68% equally distributed among the remaining commodities in the other components.
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Source: Wall Street Journal
S&P Dow Jones Indices Announces Changes To The S&P/TSX Canadian Indices
A Deletion From The S&P/TSX Venture Composite Index
October 17, 2013--S&P Dow Jones Canadian Index Services will make the following changes in the S&P/TSX Canadian Indices:
A Plan of Arrangement between Afferro Mining Inc. (TSXVN:AFF) and International Mining and Infrastructure Corp. plc (LSE:IMIC) has been approved.
Afferro shareholders will receive 80p cash and 40p value in a convertible loan note for each common share held. Afferro Mining will be removed from the S&P/TSX Venture Composite Index after close on Friday, October 18, 2013.
Source: S&P Dow Jones Canadian Index Services
S&P: The Shutdown Took $24 Billion Out Of The US Economy
October 17, 2013--There has been a cost to the gridlock in Washington over the past few weeks. Standard and Poor's puts it at $24 billion. S&P says that $24 billion loss will shave at least 0.6 percent off fourth quarter GDP growth.
And the costs are likely to continue, because the agreement to re-open the government and raise the debt ceiling is only temporary. Sam Stovall is chief equity strategist at S&P Capital IQ. He says businesses will be reluctant to invest in this atmosphere.
"Companies who are sitting on hordes of cash are going to be less willing to spend that cash if they realize that another fight is just around the corner," Stovall says.
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Source: Marketplace.org
Obama signs bill to raise debt limit, reopen government
October 17, 2013--After shutting down the U.S. government for 16 days and driving the nation toward the brink of default, a chastened Congress voted late Wednesday to reopen federal agencies, call hundreds of thousands of civil servants back to work and raise the $16.7 trillion debt limit.
An agreement struck by Senate Majority Leader Harry M. Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) ended a stalemate created last month, when hard-line conservatives pushed GOP leaders to use the threat of shutdown to block a landmark expansion of federally funded health coverage.
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Source: Washington Post
First Trust Announces Launch of First Trust Global Tactical Commodity Strategy Fund
An actively managed ETF that takes a risk-managed approach to commodities investing
October 17, 2013--First Trust Advisors L.P. ("First Trust") announced today that the launch of First Trust Global Tactical Commodity Strategy Fund, an actively managed exchange-traded fund ("ETF"), is expected to occur on October 23, 2013.
First Trust Global Tactical Commodity Strategy Fund will seek to provide total return by providing investors with commodity exposure while seeking a relatively stable risk profile by investing up to 25% of its total assets in commodity futures contracts and exchange-traded commodity linked instruments (collectively, "Commodities Instruments") through a wholly-owned subsidiary of the fund. The remainder of the fund’s assets will primarily be invested in short term investment grade fixed income securities, money market instruments, ETFs and other investment companies and cash and other cash equivalents. The fund’s shares will list and trade on The NASDAQ Stock Market, under the ticker symbol FTGC
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Source: First Trust
BlackRock's Profit Rose 14% in Third Quarter
October 16, 2013--The giant money management firm BlackRock is now managing a record $4 trillion after customers put more money into its stock mutual funds and exchange-traded funds.
The flow of new money helped push BlackRock's third-quarter profit up 14 percent from a year earlier. The company said net income in the quarter rose to $730 million, or $4.21 a share, from $642 million, or $3.66 cents a share, in the third quarter of 2012. The results were roughly in line with the expectations of analysts polled by Bloomberg News.
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Source: New York Times
CFTC Files and Settles Charges Against JPMorgan Chase Bank, N.A., for Violating Prohibition on Manipulative Conduct In Connection with "London Whale" Swaps Trades
October 16, 2013--The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order against JPMorgan Chase Bank, N.A. (JPMorgan or Bank), bringing and settling charges for employing a manipulative device in connection with the Bank's trading of certain credit default swaps (CDS),
in violation of the new Dodd-Frank prohibition against manipulative conduct.
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Source: CFTC.gov
Banks could face surcharge on physical-commodities assets
Fee Could Spur Firms to Pare Involvement in the Sector
October 16, 2013--Federal Reserve officials are considering imposing a new capital surcharge on Wall Street banks that own oil pipelines, metals warehouses and other lucrative physical-commodities assets, according to people familiar with the matter.
Such an approach could encourage banks to pare back their involvement in physical commodities, which has increasingly raised concerns among regulators and lawmakers.
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Source: Wall Street Journal
Schwab ETF OneSource(TM) Expands to Offer More Than 120 Commission-Free ETFs
October 16, 2013-- Since its debut earlier this year, Charles Schwab has added 16 new ETFs to Schwab ETF OneSource(TM), the platform that gives investors and advisors access to the most commission-free ETFs anywhere in the industry(1) .
Today, Schwab clients can now buy and sell 121 ETFs with $0 online trade commissions--a 15% increase from the 105 ETFs first offered when Schwab ETF OneSource was launched in February.
Schwab ETF OneSource includes funds from six leading providers--State Street SPDR(R) ETFs, Guggenheim Investments, PowerShares, ETF Securities, United States Commodity Funds, and Charles Schwab Investment Management.
The 16 new ETFs include five from Guggenheim, five from SPDR ETFs and six from Charles Schwab Investment Management.
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Source: Wall Street Journal
DB-Synthetic Equity & Index Strategy-North America-US ETF Market Weekly Review- US ETP assets up by 0.5% amid flat flows
October 15, 2013--Data in this report is as of Friday, October 11
Market and Net Cash Flows Review
Markets moved higher during last week. The US (S&P 500) edged higher by 0.75%; while, outside the US, the MSCI EAFE (in USD) and the MSCI EM (USD) rose by 0.63% and 1.55%, respectively.
In the meantime, performance was mostly positive across US sectors. Utilities (+2.58%) and Consumer Staples (+1.78%) recorded the biggest gains. The DB Liquid Commodity Index rose by 0.92%; similarly, the Agriculture sector (DB Diversified Agriculture Index) rose by 0.54%; meanwhile, the WTI Crude Oil, Gold and Silver prices fell by 1.75%, 2.95% and 1.75%, respectively. Moving into other asset classes, the 10Y US Treasury Yield rose by 4bps ending at 2.70%. Meanwhile on the FX side the USD weakened against all major currencies. The Euro, the British Pound, the Swiss Franc and the Japanese Yen appreciated 0.10%, 0.33%, 0.52% and 1.13%, respectively. Last but not least, Volatility (VIX) dropped by 6.09% during the same period.
The total US ETP flows from all products ended flat during last week vs. $1.1bn (-0.1%) of outflows the previous week, setting the YTD weekly flows average at +$3.1bn (+$125.1bn YTD in total cash flows).
Equity, Fixed Income and Commodity ETPs experienced flows of +$1.1bn (+0.1%), -$0.7bn (-0.3%) and -$0.7bn (-1.0%) last week vs. +$2.9bn (+0.2%), -$3.1bn (-1.2%) and -$0.8bn (-1.2%) in the previous week, respectively.
Top 3 ETPs & ETNs by inflows: MDY (+$2.2bn), EFA (+$0.6bn), BZF (+$0.5bn)
Top 3 ETPs & ETNs by outflows: SPY (-$2.3bn), QQQ (-$0.4bn), SCPB (-$0.4bn)
New Launch Calendar: China, Infrastructure, short duration, leveraged, active
There were five new ETFs and one ETN listed during the previous week on the NYSE Arca. The new products offer exposure to the China A-Share market, Infrastructure, short duration bonds, leveraged, and active strategies.
Turnover Review: Floor activity increased by 5.0%
Total weekly turnover increased by 5.0% to $350.2bn vs. $333.7bn from the previous week; Furthermore, last week's turnover level was 29.9% over last year's weekly average. Equity ETPs turnover increased by $24.5bn (+8.4%); while Fixed Income and Commodity ETPs turnover decreased by $8.1bn (-31.8%) and $1.6bn (-12.6%), respectively.
Assets under Management (AUM) Review: assets increased by 0.5%
US ETP assets rose by $7.9bn (+0.5%) totaling $1.558 trillion at the end of the week. As of last Friday, US ETPs had accumulated an asset growth of +16.8% YTD. Assets for Equity, Fixed Income and Commodity ETPs moved +$10.2bn, -$0.6bn, -$2.2bn during last week, respectively.
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Source: Deutsche Bank -Synthetic Equity & Index Strategy- North America
