Global ETF News Older than One Year
Global ETF and ETP assets reach a new high of nearly $2 trillion ($1.95 trillion) at the end of 2012
January 7, 2013--Global assets invested in Exchange Traded Funds (ETFs)and Exchange Traded Products (ETPs) hit an all-time high of nearly $2 trillion ($1.95 trillion) at the end of 2012.
ETF and ETP assets have increased by 27.6% from $1.53 trillion to $1.95 trillion during 2012, according to figures from ETFGI’s monthly Global ETF and ETP industry insights.
The 10 year compounded annual growth rate (CAGR) of global ETF and ETP assets at the end of 2012 was 29.6%. There are currently 4,731 ETFs and ETPs with 9,710 listings, assets of $1.95 trillion, from 208 providers on 56 exchanges.
iShares is the largest ETF/ETP provider in terms of assets with $760 billion, reflecting 39.0% market share; SPDR ETFs is second with $337 billion and 17.3% market share, followed by Vanguard with $246 billion and 12.6% market share. These top three ETF/ETP providers, out of 208, account for $1.34 billion or 68.9% of global ETF/ETP assets, while the remaining 205 providers each have less than 4% market share.
The top 3 providers of ETFs/ETPs accounted for $179.5 billion, or 67.6%, of all net new assets gathered in 2012. iShares gathered the largest net new ETF and ETP inflows in 2012 with $87 billion, followed by Vanguard with $54.2 billion and SPDR ETFs with $38.3 billion net inflows. All three gathered significantly more net new assets in 2012 than in 2011.
Source: ETFGI
ETF Securities-ETFS Precious Metals Weekly-Precious metal prices decline as FOMC comments outweigh US fiscal cliff optimism
January 7, 2013--Gold hits two week low after release of FOMC minutes. The release of the minutes of the December FOMC meeting last week triggered a sell-off of US Treasury bonds and gold on concerns that the Fed's bond purchase program could end sooner than expected.
The market's reaction in selling gold seems exaggerated because the statement accompanied a further expansion of monetary policy and also indicated that there are downside risks to growth. With other central banks also continuing to flood financial markets with cheap liquidity (ECB, Bank of Japan, and potentially more from the Bank of England with a new governor in 2013), global monetary policy continues to be supportive of gold in particular.
Currency debasement by the US and major developed economies is likely to continue until their long-term structural debt issues are resolved. This process could take years and will likely involve reducing real debt burdens through higher inflation. Therefore, while cyclical growth pick-ups may cause short-term pauses in debasement policies and the gold price rally, until real debt burdens are reduced, gold should remain in a structural bull market.
Precious metals 'fiscal cliff' rally overshadowed by FOMC minutes. Precious metals staged an early 2013 rally following the fiscal cliff deal but could not hold the gains after the FOMC minutes were released. Concerns over US debt levels are likely to remain in focus as negotiations will now switch to the US debt ceiling issues which must be resolved in the coming weeks in order to avoid a debt default by the US government. Gold rallied by 28% in July and August 2011 as deliberations over the debt ceiling at the time faltered.
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Source: ETF Securities
Basel Committee releases revised version of Basel III's Liquidity Coverage Ratio
January 7, 2013--The Basel Committee has issued the full text of the revised Liquidity Coverage Ratio (LCR) following endorsement on 6 January 2013 by its governing body-the Group of Central Bank Governors and Heads of Supervision (GHOS).
The LCR is an essential component of the Basel III reforms, which are global regulatory standards on bank capital adequacy and liquidity endorsed by the G20 Leaders.
The LCR is one of the Basel Committee's key reforms to strengthen global capital and liquidity regulations with the goal of promoting a more resilient banking sector. The LCR promotes the short-term resilience of a bank's liquidity risk profile. It does this by ensuring that a bank has an adequate stock of unencumbered high-quality liquid assets (HQLA) that can be converted into cash easily and immediately in private markets to meet its liquidity needs for a 30 calendar day liquidity stress scenario. It will improve the banking sector's ability to absorb shocks arising from financial and economic stress, whatever the source, thus reducing the risk of spillover from the financial sector to the real economy.
Source: BIS
Old Mutual begins hiring for asset drive
January 6, 2013--Julian Ide, chief executive of Old Mutual Global Investors, hopes to double the size of the group's assets of €13bn within three years, as part of a plan to improve profitability and regroup from setbacks its parent company endured in 2012.
Mr Ide told FTfm that Old Mutual Global Investors, owned by Old Mutual, was looking to “become more profitable while continuing to deliver positive investment returns”.
Source: FT.com
Custodian banks balk at AIFM rules
January 6, 2013--Any hopes that the final version of the Alternative Investment Fund Managers Directive would be kinder to custodian banks were dashed in the final days of last year.
The European Commission’s “level 2” measures, published on December 19, made it clear that custodian banks will indeed be liable for lost assets held in their custody. To avoid liability, depositories will have to show that the loss was caused by an event outside its control and that it had taken all possible precautions to protect the asset. The directive also bans depositories from delegating their liability risks to sub-custodians.
In addition to the strict liability rule, which effectively makes depositories responsible for mistakes and fraud across the sector, they will also have to monitor all cash movements of clients’ assets – they must know where trillions of dollars of client monies are at any given time.
view moreSource: FT.com
Group of Governors and Heads of Supervision endorses revised liquidity standard for banks
January 6, 2013--The Group of Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision, met today to consider the Basel Committee's amendments to the Liquidity Coverage Ratio (LCR) as a minimum standard.
It unanimously endorsed them. Today's agreement is a clear commitment to ensure that banks hold sufficient liquid assets to prevent central banks becoming the "lender of first resort".
The GHOS also endorsed a new Charter for the Committee, and discussed the Committee's medium-term work agenda.
Source: BIS
FTSE China A50 Index-linked ETFs hit US$10 Billion AUM
January 4, 2013--FTSE Group ("FTSE"), the award winning global index provider, is proud to announce that the combined assets of FTSE China A50 Index linked ETFs have surpassed $US10 billion
FTSE reveals the combined assets of FTSE China A50 Index linked ETFs have gone past $US10bn. This milestone underlines FTSE’s position in the China ETF marketplace, with a majority of the assets under management (AUM) in China-themed ETFs listed globally – more than 58% - benchmarked to FTSE indices.
The AUM of FTSE China A50 Index linked ETFs, including the iShares FTSE A50 China ETF and CSOP FTSE China A50 ETF, both listed on the Stock Exchange of Hong Kong, went past the record US$10bn level over the holiday period. The index represents the 50 largest A-Share companies, offering the optimal balance between representativeness and tradability for China’s A Share market.
Source: FTSE
Cliff Bounce: Russell Global Indexes Reflected Positive Returns on First Trading Day of 2013 for the Global Equity Markets
January 4, 2013--European equity markets showed positive returns on Wednesday, January 2nd 2013 as reflected by the Russell Eurozone Index, the day after U.S. Congress passed a resolution to avert the so-called "fiscal cliff."
The Russell Eurozone Index reflected a daily return of 2.4%, led by country constituents Greece (3.8%), Finland (3.8%) and Italy (3.6%).
Other world equity markets also performed strongly Wednesday, with positive returns for the Russell U.S. large-cap Russell 1000® Index, U.S. small-cap Russell 2000® Index, Russell Greater China Index and Russell Emerging Markets Index. This follows positive returns for these indexes in 2012.
Source: Russell Investments
Uncertainty a definite plus for ETFs as assets hit record
Nearly $188B in net inflows in 2012; tactical, strategic
January 4, 2013--The exchange-traded-funds industry is enjoying a boost in its popularity, thanks to growing levels of political and economic uncertainty, according to the latest report from ETFGI LLP.
The research firm said assets in exchange-traded products listed in the U.S. set a record in 2012 of $1.35 trillion, a 27% increase over 2011
Source: Investment News
BATS Global Markets Sets Full-Year Market Share Records In All Business Segments
Reports Yearly Average of 11.9% in U.S. Equities; 3.3% in U.S. Options; BATS Chi-X Europe Reports 24.6% in European Equities
January 4, 2013--BATS Global Markets (BATS), a leading operator of securities markets in the U.S. and Europe, reported its best annual market share performance across all of its markets in 2012,
including 11.9% U.S. equities market share for the year, up from 11.2% in 2011, the previous annual record, and 10.2% in 2010.
BATS Chi-X Europe averaged 24.6% pan-European equities market share for the year, measured by notional value traded, maintaining its position as the largest equity market in Europe during 2012, compared to a pro forma market share of 24.1% a year ago. In the U.S., BATS Options recorded 3.3% market share for the year vs. 3.0% in 2011.
Source: BATS Global Markets
