Global ETF News Older than One Year
BNY Mellon scoops up $1 billion Taiwanese custody mandate
Demand for global custody and administration services expected to rise as Taiwanese investors continue to seek increased exposure to international markets
July 24, 2012--BNY Mellon, the global leader in investment management and investment services, has been appointed by Taiwanese Government Pension Fund, Bureau of Labor Insurance, to provide custody and investment administration solutions for its National Pension Insurance Fund.
BNY Mellon has been selected to provide global custody, fund accounting, performance & risk analytics and compliance services for the Fund, which has assets totalling approximately US$1 billion.
"Taiwan continues to be a dynamic market as its funds industry becomes increasingly globalised," observes Chong Jin Leow, head of Asia, BNY Mellon Asset Servicing. "As Taiwanese asset managers diversify their portfolios through increased investment overseas, demand for global custody and related services from institutions like BNY Mellon, is on the rise."
Source: BNY Mellon
Mirae Asset Global Investments Appoints Global Head of ETF Sales & Marketing
July 24, 2012-- Mirae Asset Global Investments ("MAGI") has appointed Howard J. Atkinson as the Global Head of ETF Sales and Marketing for MAGI's rapidly growing international ETF business.
Mr. Atkinson is currently the President of Horizons ETFs Management (Canada) Inc. ("Horizons Canada"), which is headquartered in Toronto, Canada and is a subsidiary of MAGI. Mr. Atkinson will remain President of Horizons Canada, but in addition to that role, he will formally oversee the sales and marketing initiatives of MAGI's global ETF business, which operates from offices in Australia, Canada, Hong Kong, Korea and most recently, the United States, where regulatory filings have been made with the U.S. Securities and Exchange Commission to launch ETFs. Mr. Atkinson will be responsible for overseeing global marketing projects and rebranding efforts across all ETF product suites.
Source: Mirae Asset Global Investments
IMF Working paper-Riding Global Financial Waves: The Economic Impact of Global Financial Shocks on Emerging Market Economies
July 24, 2012--Summary: Over the past two decades, most emerging market economies witnessed two key developments. A marked process of financial integration with the rest of the world, arguably turning these economies more vulnerable to global financial shocks; and an improvement of macroeconomic fundamentals, helping to increase their resiliency to these shocks.
Against a backdrop of these opposing forces, are these economies more vulnerable to global financial shocks today than in the past? Have better fundamentals offset increasing financial integration? If so, what fundamentals matter most? We address these questions by examining the role of these two forces over the past two decades in amplifying or buffering the economic impact of these shocks. Our findings show that EMEs, with the exception of Emerging Europe, have become less vulnerable. Exchange rate flexibility and external sustainability are key determinants of the impact of these shocks, while the extent to which deeper financial integration is a source of vulnerability depends on the exchange rate regime.
Source: IMF
WFE Publishes First Half 2012 Market Highlights
July 24, 2012--The total market capitalization of WFE exchanges increased by 5.3% in the first half of 2012 while global trading volumes continued their decline.
The rise in market capitalization was mainly attributed to markets in the Americas and Asia-Pacific regions, according to figures released today by the World Federation of Exchanges (WFE).
Specific 2012 first half highlights from WFE are as follows:
Equity Markets
In the first half of 2012, global equity market capitalization rebounded 5.3% from year end 2011, but still remain below the level from one year ago. The market capitalization in the Europe-Africa-Middle East region was flat during the sovereign debt crisis in Europe and appreciation of USD. The Americas and Asia-Pacific regions increased 9.1% and 4.8% respectively.
Despite the higher market capitalization, the total value of share trading[1] of WFE member exchanges continued to decrease significantly falling 14% in the first half of 2012 after an earlier drop of 4% in second half-year of 2011.
Source: World Federation of Exchanges
Macro Matters-Negative data surprises persist
July 23, 2012--In this issue of Macro Matters, while the tide of data disappointments recedes throughout the world, we briefly review the sustained negative surprises out of the US.
Last week it was retail sales, housing permits, leading indicators, consumer sentiment and weekly jobless claims that kept the US economic surprise index under pressure.
Through our LSE (Liquidity, Surprises and Events) framework for assessing risk appetite, we have highlighted the fact that liquidity is improving and will likely continue to do so over the summer and into the fall. Expectations for high-frequency data points out of the US are at extremely low levels, beating down market expectations and lowering the bar for data surprises. Unfortunately, while the misses in the rest of the world have eased, the US data remains weak.
Source: Mirae Asset Financial Group
DCGX Academy: Spain 10Y +7%, Greece, China GDP forecast at 7.4%, China FX less $65B, EUR 11 years low
July 23, 2012--HIGHLIGHTS--COMMODITIES
Commodities decline on Chinese GDP, Euro Zone concerns.
Oil Declines a Second Day on China GDP, Europe Concerns
Copper Declines to One-Week Low on China Demand, Greek Concerns
Gold falls as Dollar Rallies on European Zone concern
Orders for Copper double prices may rise in the medium term
FOREIGN EXCHANGE
INR at Week low , FII Debt Target Missed
German VC Philipp Roesler "very skeptical" that European leaders will be able to rescue Greece"
EURJPY at 11 years low as Spanish yields cross 7%
Yuan declines to lower limit
CHINA FX Reserves decline $65 billion
Greece leaving the Euro-Zone , concerns resurface
Osborne may tweak UK policy on current quarter economic concerns
Asia Currencies Decline on China's GDP, Greek developments
Source: DCGX Academy:
EPFR Global Fund Data-Global uncertainty favors US fund groups
July 23, 2012--Global uncertainty favors US fund groups
Flows into EPFR Global-tracked Equity and Bond Funds during the third week of July were dominated by US fund groups as corporate earnings, macroeconomic data and geopolitics provided plenty of mixed signals for investors.
Against a backdrop that included a sharp escalation in Syria’s civil war, data showing China’s economy growing at the slowest pace in three years and Spanish bond yields testing 7% again, investors committed $3.1 billion to US Bond Funds and $6 billion to US Equity Funds. Total flows for all Bond and Equity Funds in the week ending July 18 totaled $4.7 billion and $5.1 billion respectively while Money Market Funds experienced net redemptions of $10.5 billion.
Yield remains an issue for investors at a time when the safest short-term government debt is selling for over 100 cents on the dollar. High Yield Bond Funds took in over $1 billion for the fifth straight week, investors committed over $900 million to Emerging Market Bond Funds and flows into Dividend Equity Funds, which stumbled in mid-June, accelerated for the fourth consecutive week and hit an 11 week high.
The appetite for EM debt did not extend to equities. Redemptions from Emerging Market Equity Funds jumped to a six week high as rising agricultural commodity prices cooled expectations of more fiscal and monetary stimulus in key markets.
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Source: EPFR Global
ETFS Precious Metals Weekly: Investors Move to Sidelines as Spanish Bond Yield Surge to Record Levels
July 23, 2012--Spanish 10 year bond yields break into unchartered territory, pushing precious metals investors to the sidelines. Despite the German parliament's approval of the bailout loan for Spanish banks last week, Spain's 10-year bond yields continued to rise, rising to a Euro-era all
time high above 7.5% in early Monday trade as markets deem current
measures insufficient to save Spain from possible sovereign default.
Risk appetite is also being hit by growing concerns that Greece may not be given the bailout funds necessary to get it through its upcoming August bond payment. The uncertainty around the future of the Eurozone has kept investors on the sidelines, keeping the gold price trading in a relatively narrow range. Last week the much-anticipated Congressional testimony of Fed Chairman Bernanke provided no new information on the timeframe for potential additional monetary stimulus, disappointing gold investors.
Gold-Silver ratio remains near 2-yr high. Silver appears undervalued compared to gold based on their price relationship over the past two years, with the gold-silver ratio near a two year high of 58 versus its two year average of 50. Silver prices have dropped to near their lowest levels in over 18 months, as slowing global industrial demand and the strength of US dollar take their toll. While silver volatility has eased from 2-month highs, normally a positive signal for the metal, more solid economic readings are likely to be required (or additional policy stimulus) before the silver price can make a sustainable move higher. Indeed, silver price moves tend to lag moves in gold so the ratio has potential to move higher in the near-term before, bringing its relative value more in line with its historic averages.
Platinum Group Metals (PGMs) in holding pattern, investors remain cautious. While investors remain cautious about adding to long exposures to PGMs in the current risk-off environment, positive signs remain on a fundamental level. Auto sales, have continued to improve, with North American auto sales recording over 20% gains in Q2. On the supply front, the expected modest sales of Russian state stockpiles and labour unrest in South Africa, leading to potential deficit conditions in 2012, particularly for palladium. However, until policymakers can resolve the myriad issues facing global financial system, the ebb-and-flow of investor risk appetite will likely remain the dominant catalyst for price movements.
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Source: ETF Securities
Wealth doesn't trickle down -it just floods offshore, research reveals
A far-reaching new study suggests a staggering $21tn in assets has been lost to global tax havens. If taxed,that could have been enough to put parts of Africa back on its feet-and even solve the euro crisis
July 21, 2012--The world's super-rich have taken advantage of lax tax rules to siphon off at least $21 trillion,
and possibly as much as $32tn, from their home countries and hide it abroad-a sum larger than the entire American economy.
James Henry, a former chief economist at consultancy McKinsey and an expert on tax havens, has conducted groundbreaking new research for the Tax Justice Network campaign group – sifting through data from the Bank for International Settlements (BIS), the International Monetary Fund (IMF) and private sector analysts to construct an alarming picture that shows capital flooding out of countries across the world and disappearing into the cracks in the financial system.
Source: The Guardian
Announcement Pursuant To Rule 703(1) Of The Listing Manual -Market Rumours About Potential Merger Between The London Stock Exchange And SGX
July 20, 2012--Singapore Exchange (SGX) wishes to make a clarification on market rumours today about a potential merger between the London Stock Exchange (LSE) and SGX.
SGX has not engaged in talks with the LSE on a potential merger. However, we are open to collaborations and partnerships which may benefit our shareholders and the company. SGX will notify the market of any material developments as required under the Securities and Futures Act and the SGX-ST Listing Rules.
Source: Singapore Exchange (SGX)
