Americas ETP News
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Passive performers beat active cousins
July 8, 2012--Managers of institutional US equity accounts have been fighting protracted battles on two business fronts.
One effort is struggling severely, as pension sponsors continue to pull US equity assets out of active management.
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Source: FT.com
BM&FBOVESPA:-Institutional investors lead participation in volume of index funds (ETFs) traded on the Exchange in June
July 6, 2012--Institutional investors led with a 34.89% participation of the total volume of index funds (ETFs) traded on the Exchange in June, followed by financial institutions (32.47%), foreign investors (20.19%), individuals (11.60%) and public and private companies (0.84%).
In June, shares of the iShares Ibovespa Index Fund were the most traded on BM&FBOVESPA. The BOVA11 ticker accounted for 95.4% of total volume of ETFs traded on the Exchange.
view the BM&FBOVESPA June Bulletin on ETF activities
Source: BM&FBOVESPA
CFTC's Division of Market Oversight Issues Letter to Market Participants Regarding Compliance with Large Trader Reporting System for Physical Commodity Swaps and Swaptions
Division to Provide Temporary No-Action Relief for Less than Fully Compliant Reporting of Positions Based on Ownership
July 6, 2012--The Commodity Futures Trading Commission's (CFTC) Division of Market Oversight (Division) issued a letter to market participants providing temporary no-action relief for less than fully compliant reporting of positions based on ownership under the CFTC's large trader reporting system for physical commodity swaps and swaptions.
This temporary relief is intended to provide sufficient time for the industry to transition to fully compliant reporting for positions based on ownership by July 27, 2012. As a condition of this relief, market participants must submit, by July 30, 2012, fully compliant reports dating back to July 2, 2012.
view the Staff No-Action Relief: Temporary No-Action Relief for Less Than Fully Compliant Reporting of Positions Based on Ownership
Source: CFTC.gov
IndexIQ files with the SEC
July 6, 2012--IndexIQ has filed a second and restated application for exemptive relief with the SEC for actively-managed ETFs.
view filing
Source: SEC.gov
IndexIQ Announces Changes to Its ETF Family
July 6, 2012--IndexIQ, a leading developer of index-based alternative investment solutions, today announced it plans to close the IQ South Korea Small Cap ETF (NYSE Arca: SKOR).
Assets in SKOR represent only approximately 1% of IndexIQ’s ETF assets.
The Board of Trustees of the IndexIQ ETF Trust approved the closures on July 3, 2012. The final day of trading on the NYSE Arca will be Friday, August 17, 2012. Shareholders who do not sell their fund shares by this date will have their shares automatically redeemed on August 22, 2012, the fund’s last day of operations.
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Source: Index IQ
OECD-The United States needs to foster education and innovation to keep its cutting edge
July 6, 2012--The United States should do more to foster innovation and provide more equitable access to high-quality education in order to maintain its status as the world's most vibrant and productive economy, according to OECD's latest Economic Survey of the United States.
Data from the Survey suggest the United States is losing its cutting edge in innovation. This affects prospects for long-term growth and for maintaining living standards. Productivity in the U.S. is still growing faster than in most other OECD countries but growth has slowed down since the 1970s. Also, U.S. companies are no longer more likely to innovate than companies in other OECD countries.
Particularly worrying is the performance in education, which is essential to provide workers with the skills necessary to become more productive and to adapt to technological change. Attainment in tertiary education stagnated over the past three decades while it grew significantly in almost every other OECD country. Today, 22 out of 30 OECD countries surveyed have more graduates in science and engineering among the 25 to 34 year old workers than the United States.
view the Overview of the Economic Survey of the United States 2012
Source: OECD
DB-Equity Research - North America-US ETF+ Monthly Directory:June 2012 ETPs
July 6, 2012--This document includes all US listed exchange-traded funds (ETFs) and exchangetraded vehicles (ETVs), plus a special section covering exchange-traded notes (ETNs).
The directory is organized by asset class and asset-class-related sub sections. Within each sub section it has also been sorted. For Equity and Fixed Income ETPs it is sorted by country (or sub region for regional products) in alphabetical order and by AUM in descending order, and for the other ETP asset classes it is sorted by sub sector in alphabetical order and by AUM in descending order. A number of key information points per product has been included in order to enable the reader to get an overview in their respective area of interest. Among the key numeric information we include avg. daily turnover, assets under management, and cash flows (all in $US). If you have any questions for any of the products listed, or any suggestions on how to improve the directory going forward, please do not hesitate to get in touch.
The following link will be available for 90 days. For more information, please click on the link for the full PDF.
If you have any trouble viewing the link, copy and paste the link in a browser. http://pull.db-gmresearch.com/p/395-DBB0/71014195/US_ETF+_Monthly_Directory.pdf
Source: Deutsche Bank-Equity Research-North America
US education plans see advantage in ETFs
July 5, 2012--Faced with shrinking contributions and shaky returns, 529 college-savings plans are dangling a new carrot to attract wary parents: exchange-traded funds.
The aim is to attract more investors by providing more diversification and extra protection from wild swings in the market.
Nebraska last month introduced four new ETFs in three of its 529 plans. One of New York's plans recently added six ETFs, while Nevada's Upromise 529 moved almost exclusively to ETFs and away from mutual funds, which still dominate the college-savings industry.
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Source: Financial News
DB-Equity Research-US ETF Market Monthly Review : ETP assets grew by 11.2% in H1 2012 with inflows of $72bn
July 5, 2012--US ETP assets recovered 3.7% MoM in June, back above 10% YTD
ETP assets in the US rose by $41.4bn to $1.16 trillion last month, boosting AUM growth back to the double-digit territory (11.2%) in the first half of the year.
Global ETP industry assets rose to $1.59 trillion, or 10.5% up YTD.
Mixed trends suggest range-bound market
US ETP flows experienced inflows of $12.1bn during June (+$72.3bn, 6.9% of last year’s AUM).
Within long-only ETPs, total flows were +$11.6bn in June vs. +$5.0bn in May.
Equity, Fixed Income, and Commodity long-only ETPs experienced cash flows of +$5.1bn, +$5.1bn, and +$1.5bn, respectively.
June turned out to be a very fluid month for risky assets as the European Sovereigns continued to muddle through the financial crisis and US economic data continued to disappoint. However, things become less pessimistic towards the end of the month and the bottom line turned positive for risky assets.
A closer look at the new equity and fixed income allocations, however, suggest that investors have been rather cautious and have not displayed clear signs of a new trend yet, either bullish or bearish. For example, equity allocations favored safer bets such as relatively stronger economies (e.g. the US), and diversified regional exposures (e.g. broad EM and DM ex US) rather than country allocations. In the meantime, new fixed income flows were concentrated on corporate debt products, but heavily inclined to the investment grade segment. And on the commodity space, flows were mixed between safe-haven (e.g. precious metals) and growth-driven (e.g. energy) sectors.
Some of the relevant flow trends of the month were: (1) US equity (+$4.0bn), (2) Investment Grade debt (+$3.3bn), and (3) Corporate debt (+$3.3bn).
New Launch Calendar: expanding investors toolbox
There were 10 new ETPs and 1 new ETN listed during the previous month. All of the products were listed in the NYSE Arca. The new products cover multiple asset classes such as equity, fixed income, Commodity, and Currency
Floor activity dropped by 10% driven by receding volatility
Total monthly turnover dropped by 10.1% to $1.31 trillion vs. $1.46 trillion in the previous month.
US ETP trading made up 29.5% of all US cash equity trading in June, down from both its August 2011 peak of 37.5% and its 3-year monthly average of 30.0%.
The largest drop was on Equity ETP turnover, which fell by $144bn or 11.1% to $1.15 trillion, followed by Commodity products turnover which shrank by $3.6bn, totaling $68bn for the month of June. Meanwhile, Fixed Income ETP turnover slightly rose by $0.8bn to $82bn last month.
to request report
Source: Deutsche Bank-Equity Research-North America
Canada's top regulators approve TMX takeover
July 4, 2012--Canada's top regulators on Wednesday approved the takeover of the country's biggest stock exchange operator by a group of Canadian financial firms, pushing a protracted process tantalizingly close to the finish line.
The Ontario Securities Commission and Canada's Competition Bureau approved the takeover of TMX Group by Maple Group - a consortium of Canada's largest banks, insurers and pension funds - removing two big hurdles to a deal that now needs only the approval of two provincial regulators.
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Source: Reuters
