Global ETF News Older than One Year
Bulls take on Japanese characteristics as Equity Fund flows hit three month high
May 17, 2013--The second week of May saw flows into Japan Equity Funds hit a record high in both dollar and percentage of assets under management terms as an market long associated with kuma (bears) saw the oushi (bulls) arrive in force.
That helped lift flows into all EPFR Global-tracked Equity Funds to their highest level in 14 weeks and allowed them to outgain Bond Funds by a 4-to-1 margin despite another week of net redemptions by retail investors.
Overall flows into Equity Funds during the week ending May 15 totaled $14.16 billion versus net inflows of $3.4 billion Bond Funds while Money Market Funds saw $15.7 pulled out with Europe Money Market Funds seeing the biggest redemptions. Year to date Equity Funds have absorbed $176.36 billion and Bond Funds $165.1 billion.
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Source: EPFR
IMF Working paper-"Near-Coincident" Indicators of Systemic Stress
May 17, 2013--Summary: The G-20 Data Gaps Initiative has called for the IMF to develop standard measures of tail risk, which we identify in this paper with systemic risk. To understand the conditions under which tail risk is present, it is first necessary to develop a measure of what constitutes a systemic stress, or tail, event.
We develop such a measure and uses it to assess the performance of eleven near-term systemic risk indicators as ‘early’ warning of distress among top financial institutions in the United States and the euro area. Two indicators perform particularly well in both regions, and a couple of other simple indicators do well across a number of criteria. We also find that the sizes of institutions do not necessarily correspond with their contribution to spillover risk. Some practical guidance for policies is provided.
view the IMF Working paper-"Near-Coincident" Indicators of Systemic Stress
Source: IMF
NYSE and Credit Suisse inch closer to "trade-at" rule
May 16, 2013--NYSE Euronext and the Credit Suisse Group have agreed on a proposal to test a "trade-at" rule that would require orders be sold at the best price.
They will need the Financial Industry Regulatory Authority to reactivate the alternative display facility to allow alternative trading venues to post bids.
Source: SmartBrief
World Gold Council Gold Demand Trends Q1 2013
May 16, 2013--Executive summary:
Key findings for first quarter 2013 examined by sector and region.
Global Gold Market: First quarter 2013 review
Jewellery: Fourth quarter recovery in the jewellery sector continued into the first quarter of this year.
Investment: The decline in investment demand relative to Q1 2012 was solely attributable to the net outflows from ETFs, which obscured the strong rise in investment for gold bars and coins at the retail level.
Technology: Technology demand has been broadly stable, holding around 100 tonnes, over the last six quarters.
Central Banks: Central banks added 109.2t of gold to their reserves in Q1 2013, the ninth consecutive quarter of net purchases.
Supply: At 1,051.6t, total gold supply was little changed from first quarter of 2012
Source: WOrld Gold Council
Developing countries to dominate global saving and investment, but the poor will not necessarily share the benefits, says report
May 16, 2013--Developing world's share of global investment to triple by 2030
China, India will be developing world's largest investors
Boost to education needed so poor can improve their well-being
In less than a generation, global saving and investment will be dominated by the developing world, says the just-released Global Development Horizons (GDH) report.
By 2030, half the global stock of capital, totaling $158 trillion (in 2010 dollars), will reside in the developing world, compared to less than one-third today, with countries in East Asia and Latin America accounting for the largest shares of this stock, says the report, which explores patterns of investment, saving and capital flows as they are likely to evolve over the next two decades.
Source: World Bank
MSCI Equity Indices May 2013 Index Review
May 15, 2013--MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools worldwide, including indices, portfolio risk and performance analytics and corporate governance
services, announced today the results of the May 2013 Semi‐Annual Index Review for the MSCI Equity
Indices-including the MSCI Global Standard,
MSCI Global Small Cap and MSCI Micro Cap Indices, as well as the MSCI Global Value and Growth Indices, the MSCI Frontier Markets and MSCI Frontier MarketsSmall Cap Indices, the MSCI Global Islamic and MSCI Global Islamic Small Cap Indices, the MSCI Pan‐Euro and MSCI Euro Indices, the MSCI US Equity Indices, the MSCI US REIT Index, as well as the MSCI China A Indices. All changes will be implemented as of the close of May 31, 2013.
Source: MSCI
ETF Securities-Research Note: Platinum Group Metals Outlook: Palladium Still Favoured
May 15, 2013--Report Summary
After a strong start to the year, platinum and palladium have given back most of the gains accumulated since the beginning of 2013, as the recent sell-off in precious metals has weighed on performance.
We expect the soft patch in US and Chinese economic indicators to be temporary and healthy growth will resume in the coming months, supported by on-going central bank policy stimulus. With platinum prices currently trading an estimated US$400 per ounce below miners' cash operating costs, more production cut backs are expected. While supply-side dynamics are price-supportive for both platinum and palladium, demand drivers are likely to favour palladium, which is more exposed to the strong growth of the US and Chinese auto sectors.
Source: ETF Securities
IMF Staff Discussion paper-Creating a Safer Financial System: Will the Volcker, Vickers, and Liikanen Structural Measures Help?
May 14, 2013--Summary: The U.S.,, the U.K., and more recently, the E.U., have proposed policy measures directly targeting complexity and business structures of banks. Unlike other, price-based reforms (e.g., Basel 3 and G-SIFI surcharges), these proposals have been developed unilaterally with material differences in scope, design and implementation schedules.
This may exacerbate cross-border regulatory arbitrage and put a further burden on consolidated supervision and cross-border resolution. This paper provides an analysis of the potential implications of implementing different structural policy measures. It proposes a pragmatic and coordinated approach to development of these policies to reduce risk of regulatory arbitrage and minimize unintended consequences. In doing so, it also aims to identify a set of common policy measures that countries could adopt to re-scope bank business models and corporate structures.
Source: IMF
Supply shock from North American oil rippling through global markets
IEA's Medium-Term Oil Market Report sees companies overhauling global investment strategies; meanwhile, surge in non-OECD refining capacity shakes up product market
May 14, 2013--The supply shock created by a surge in North American oil production will be as transformative to the market over the next five years as was the rise of Chinese demand over the last 15, the International Energy Agency (IEA) said in its annual Medium-Term Oil Market Report (MTOMR) released today.
The shift will not only cause oil companies to overhaul their global investment strategies, but also reshape the way oil is transported, stored and refined.
According to the MTOMR, the effects of continued growth in North American supply – led by US light, tight oil (LTO) and Canadian oil sands – will cascade through the global oil market. Although shale oil development outside North America may not be a large-scale reality during the report’s five-year timeframe, the technologies responsible for the boom will increase production from mature, conventional fields – causing companies to reconsider investments in higher-risk areas.
Source: International Energy Agency (IEA)
Number of Cross-Listed Futures Doubles as Investors Search for Better Access to Global Markets, Says TABB
Number of Cross-Listed Futures Doubles as Investors Search for Better Access to Global Markets, Says TABB
Majority of 30 Contracts are Found on Exchanges in India, Hong Kong and Russia
May 13, 2013--In a new report, international capital markets research firm TABB says cross-listed futures, which have more than doubled since 2010, can succeed as investors across the financial markets continue to allocate a greater percentage of their assets to non-domestic exposures.
Cross-listed futures allow investors to trade foreign-based futures contracts on their local exchange. They benefit institutional investors looking to simplify their trade and settlement processes. For exchanges, they create a new revenue base at a relatively low cost.
Source: TABB Group
