Global ETF News Older than One Year
ETFGI monthly newsletter, January 2014
January 10, 2014--Global ETF and ETP assets suffer a 3.2 percent decline in January 2014
In January 2014, global ETF/ETP assets fell by 3.2% to US$2.32 trillion based on negative market performance and net outflows of US$7.6 billion, according to preliminary findings from ETFGI's January 2014 Global ETF and ETP industry insights report.
January was a difficult month for emerging and developed equity markets.view more
Source: ETFGI
ETFs respond to market changes
February 10, 2014--Sir, John Authers, in "Emerging markets are not being well served by ETFs" (February 3), attempts to make the case that exchange traded funds are the cause of recent outflows from emerging markets.
This argument provides a catchy headline, but it is quite naive. ETF assets respond to changes in markets; they don’t cause them. And emerging markets have always been more volatile than developed ones. For investors, this is the point. It is what drives the dynamics of risk and return.
Source: FT.com
EPFR Global News Release- US Equity Funds see record outflows as institutional investors shift to Bond Funds
February 7, 2014--Institutional redemptions from EPFR Global-tracked US Equity Funds and commitments to US Bond Funds both set new records in dollar terms going into February as markets around the world continue to struggle with the shift in US monetary policy, China's slower growth and the cautious tone of the latest corporate earnings forecasts.
This 'mini-rotation' by institutional investors between US-dedicated fund groups underpinned a new inflow record for all Bond Funds and a new outflow record for all Equity Funds during the week ending Feb. 5. Collective outflows from all Equity Funds totaled $28.3 billion, with Emerging Markets Equity Funds accounting for a fifth of that total, while a net $14.7 billion flowed into Bond Funds.
Visit www.epfr.com for more info
Source: EPFR
SPDR Weekly Report
February 7, 2014--ECONOMIES:
Unemployment falls in the US and Canada. The Bank of England, the European Central Bank, and the Reserve Bank of Australia leave administered rates unchanged.
MARKETS: US hits its debt ceiling again but emerging markets remain the primary concern for investors. Equities are mixed. G7 government bonds see their safe haven bids erode. AUD jumps. Gold and oil are up.
NEXT WEEK PREVIEWED
SPOTLIGHT: Retail sales are expected to begin the year flat in the US. GDP should rise moderately in Germany, France, Italy and the
overall eurozone. Unemployment likely edges higher in Australia.
THE WEEK IN REVIEW
US
It seemed that the January EMPLOYMENT REPORT would be difficult to interpret. The Bureau of Labor Statistics (BLS) incorporated new population controls in the household survey and benchmark revisions in the establishment survey. In addition, a polar vortex created unseasonably cold weather across much of the country, and the Congress failed to extend emergency unemployment benefits. But, it’s unclear
that these had much of an impact. The effects of the new
population controls were "negligible." And the benchmark
revisions boosted payrolls by (an unadjusted) 347,000 (0.3%)
in March 2013. The Labor Department estimated that
inclement weather kept 262,000 from work, which is less than
December and little different from last year. And there were
no untoward moves in the household data to suggest that the
ending of the emergency benefits had much effect. So, we
were left with a generally weak report that contained enough
pockets of strength to prevent a change in the Fed’s course.
For more information, including product fact sheets and related whitepapers:
Source: SSgA
ESMA tells firms to improve their selling practices for complex financial products
February 7, 2014-The European Securities and Markets Authority (ESMA) has published an Opinion on practices to be observed by investment firms when selling complex financial products to investors. ESMA is issuing this opinion to remind national supervisors and investment firms about the importance of requirements governing selling practices under MiFID (Markets in Financial Instruments Directive).
ESMA is issuing this Opinion as it is concerned that firms' compliance with the MiFID selling practices when selling complex products may have fallen short of expected standards. The concerns relate mainly to the suitability and appropriateness of complex products that are increasingly within the grasp of retail investors. The Opinion sets out ESMA’s minimum expectations with respect to the conduct of firms when selling complex products to retail investors.
Source: ESMA
Food prices fall for first time in three months-UN agency
February 6, 2014--Global food prices declined for the first time in three months as lower prices for cereals, sugars, oils and meat outstripped gains in dairy values, the United Nations Food and Agriculture Organization (FAO) reported today.
The Rome-based agency said its Food Price Index averaged 203.4 points in January, which is 1.3 per cent below December and 4.4 per cent below January 2013.
The Index measures monthly changes in international prices of a basket of meat, dairy, cereals, oils and fats, and sugar.
Source: UN
DECPG Weekly Brief -February 6, 2014
February 6, 2014--Notwithstanding improving growth prospects for the Euro Area and the United States, a sell-off that started in developing country equity markets spread to high income markets in late January. The equity market sell-off does not
appear to have been caused by the taper itself (globally yields are broadly stable), although taper-related uncertainty may have exacerbated declines.
Currency pressures in mid-2013 and again in early 2014 prompted monetary policy tightening in several large middle-income countries, but real interest rates remain low. The World Bank's latest Commodity Markets Outlook forecasts most non-energy commodity prices to decline for the second year in 2014.
Global equity markets experienced a generalized correction in recent weeks, with high income and developing markets each falling 6 percent since January 22. While the weakness began in developing countries (down 5.8% since January 22), high-income countries’ market losses since January 22 are broadly similar (-5.1% for the U.S. S&P index, -7.7% for the Japanese Topix, and -5.8% for Euro Area stocks). The declines came despite signs of a strengthening in high-income economies, which saw Japan’s manufacturing Purchasing Managers’ index reach a 7-year high in January, and Euro Area PMIs strengthen further. U.S. data is somewhat more mixed with signs of some easing in the pace of activity in January. Notwithstanding recent declines, high-income country markets are 9 percent higher than a year earlier, following extended gains during 2013, while developing markets weakened, bringing total declines since January 2013 to 15 percent. US long-term bond yields have declined by about 30 basis points since the start of the year, and developing country spreads have increased by about 40 basis points-suggesting some flight to quality. However, the two effects mostly cancel one another out, leaving developing-country longterm yields and borrowing costs broadly stable.
Source: World Bank
NASDAQ OMX Reports Record Fourth Quarter 2013 Results
February 5, 2014--Fourth quarter 2013 net revenues1 were a record $520 million, up 23% from the prior year quarter.
On an organic basis, assuming constant currency and excluding acquisitions, net revenues increased 5% year-over-year.
Achieved record fourth quarter non-GAAP diluted EPS of $0.69, which was 8% higher year-over-year. Fourth quarter 2013 GAAP diluted EPS was $0.81.
Achieved organic revenue growth year-over-year in all three non-trading business segments, Information Services, Technology Solutions, and Listing Services.
Non-transaction based revenues were 73% of our total fourth quarter 2013 net revenues, and increased 27% from the prior year quarter.
Both recent acquisitions of eSpeed and the IR, PR, and Multimedia businesses of Thomson Reuters are contributing earnings accretion and progress continues on delivering the synergy potential of both transactions.
Source: NASDAQ OMX
IOSCO Issues Report on Risks and Benefits of Financial Return Crowd-Funding
February 5, 2014--The Research Department of the International Organization of Securities Commissions (IOSCO) today published a Staff Working Paper entitled Crowd-funding: An Infant Industry Growing Fast.
The report provides a global overview of the crowd-funding industry along with a mapping exercise of the global regulatory landscape. It seeks to identify investor protection issues and to determine whether crowd-funding poses a systemic risk to the global financial sector. The views expressed in this Staff Working Paper are solely those of the IOSCO Research Department and do not necessarily reflect the views of IOSCO or its members.
view the Crowd-funding: An Infant Industry Growing Fast report
Source: IOSCO
MOVES-Credit Suisse, Federated Investors, BNY Mellon
February 5, 2014--The following financial services industry appointments were announced on Wednesday.
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CREDIT SUISSE GROUP AG
The Swiss bank appointed Helene von Roeder as managing director and chief executive for Germany, Austria and Central Europe from Sept. 1. Von Roeder, who was an executive board member at Morgan Stanley's German business, will be based in Frankfurt
Source: Reuters
