Global ETF News Older than One Year
State Street eyes securities services buys
May 16, 2011-State Street plans to expand its securities services arm outside the US through acquisitions, benefiting from European lenders' needs to shed ancillary businesses to raise capital.
“The market is going to deliver opportunity,” Jay Hooley, the trust bank’s chief executive, told the Financial Times. “I think we’re poised very well, from the standpoint of business model and capital strength, to take advantage of acquisitions as they present themselves.”
Source: Financial Trust
Canadian Bid for TMX May Trumpet Nationalism to Thwart LSE
May 14, 2011---- A group of Canadian banks and pension funds is offering to buy Toronto Stock Exchange owner TMX Group Inc. in a C$3.6 billion ($3.7 billion) bid that champions a domestic alternative to London Stock Exchange Group Plc’s takeover agreement.
Ontario Finance Minister Dwight Duncan said in an interview yesterday that he welcomed the proposal from Maple Group Acquisition Corp., a consortium of four banks including Toronto- Dominion Bank and five Canadian pension funds. Toronto-based TMX already trades 7.2 percent higher than LSE’s Feb. 9 bid.
Source Bloomberg Businessweek
TMX Group Inc. Statement
May 14, 2011 (Canada NewsWire via COMTEX) -- TMX Group Inc. announces that it has received a written proposal for the acquisition of TMX Group by a corporation, formed by a number of Canadian financial institutions, including pension funds and banks, operating under the name Maple Group Acquisition Corporation ("Maple").
The Maple proposal, which is not binding and was prepared for discussion purposes, provides for a combination of cash and equity consideration stated to be at a premium to the current market price of TMX Group shares. The proposal also involves a number of significant conditions, including regulatory approval for the combination of TMX Group with both Alpha Group and CDS Inc., but does not specify the means for satisfying these conditions.
The Board of Directors of TMX Group, in accordance with its fiduciary duties and with counsel from its financial and legal advisers, will fulfill its legal responsibility and will evaluate the proposal.
TMX Group will continue to pursue efforts currently underway to secure the necessary regulatory and shareholder approvals required to complete its agreed merger with London Stock Exchange Group.
TMX Group will make no other public comment on the Maple proposal until the Board of Directors has completed its analysis.
Source: Toronto Stock Exchange
Hedge Fund Inflows Swell to 9-month High
May 13, 2011--Hedge funds last month enjoyed their biggest monthly net inflows since August, as investors backed managers to profit from increasing market volatility, indicative data from GlobeOp Financial Services (GO.L) shows.
The GlobeOp Capital Movement Index -- which tracks the monthly net of subscriptions to and redemptions from around $167 billion (103 million pounds) of hedge fund assets under administration -- showed a net inflow of 2.29 percent in the month to May 1 compared with a 0.05 percent net outflow a month earlier.
Source: Reuters
Statement: The Management and Supervisory Boards of Deutsche Börse AG recommend acceptance of the offer made by Alpha Beta Netherlands Holding N.V.
Combination of Deutsche Borse and NYSE Euronext creates the world’s premier global exchange group/ Superior value creation through enhanced growth profile and significant synergies/ Management and Supervisory Boards of Deutsche Börse recommend that all shareholders accept the offer
May 12, 2011-- Management Board and Supervisory Board of Deutsche Borse Aktiengesellschaft today made a joint statement in accordance with Section 27 of the German Securities Acquisition and Takeover Act (WpÜG) on the voluntary takeover offer published on 4 May 2011 by Alpha Beta Netherlands Holding N.V.
The Management Board and the Supervisory Board recommend that the shareholders of Deutsche Börse AG accept the offer under which they will receive one share of the Dutch holding for each share in Deutsche Börse. The Dutch holding will be the joint holding company of Deutsche Börse AG and NYSE Euronext in the combined company.
Reto Francioni, CEO of Deutsche Börse AG, said: “The combination with NYSE Euronext will drive significant long-term value for all shareholders through superior cash flow generation, a strong balance sheet and a clear path to value creation. The unique growth opportunities and specific, clearly identified synergies will allow the combined company to maintain a shareholder-friendly distribution policy while providing it with the flexibility to invest, grow and innovate to meet the demands of the global marketplace.”
Source: Deutsche Börse
CDS Spreads and Default Risk: A Leading Indicator?
May 12, 2011--Summary
Credit default swap (CDS) spreads have been gaining greater visibility as default risk indicators
over the past several years. Fitch Ratings provides its ratings analysts with access to CDS pricing
data as one of many analytical tools, and outliers whose spreads deviate significantly from peers
may prompt further review of an individual credit.
Some market participants also use CDS spreads to derive quantitative estimates of a company’s probability of default (PD).
Given the growing influence of CDS spreads as risk indicators, Fitch has undertaken a series of studies to assess the predictive performance of CDS spreads more systematically. This study analyzes the ability of CDS spreads to identify in advance companies that eventually default by reviewing the CDS-implied PDs of monolines, financial institutions, and corporate entities that experienced a credit event (e.g. failure to pay, bankruptcy, restructuring) between 2008 and 2010.
Source: Fitch Ratings
Banks look to counter LSE’s TMX deal
May 12, 2011--This week a giant blue illuminated ball and electronic ticker tapes were inaugurated at the London Stock Exchange as the UK bourse launched a new market opening ceremony to kick off trading each day.
It was probably a welcome distraction for Xavier Rolet, LSE chief executive, from having to follow the progress of his planned “merger of equals” with TMX Group, operator of the Toronto and Montreal exchanges, thousands of miles away in Canada.
Source FT.com
D Börse raises NYSE revenue forecasts
May 12, 2011--Deutsche Börse on Thursday raised its estimates for revenue synergies that could be achieved in its planned combination with NYSE Euronext from €100m ($141m) to €150m partly through expanding the group’s clearing service across the proposed new group.
Reto Francioni, Deutsche Börse chief executive, also attacked the counter-bid for NYSE Euronext by Nasdaq OMX and IntercontinentalExchange, saying it would lead to a monopoly in US listings, weaken New York as a financial centre and “marginalise” European cash markets through “a US-oriented Nasdaq and NYSE Euronext combination”.
Source: FT.com
China eases trade rules, allows US fund sales
May 11, 2011--China on Tuesday pledged easier access for US companies to key sectors of its economy by removing barriers to its huge market in government contracts and offering a foothold to US mutual funds.
The pledges were made in two days of talks between the world’s two biggest economies which ended with both sides hailing progress in their often tense relationship. The difficulties in relations, particularly in human rights issues, were underscored by US Secretary of State Hillary Clinton, who described Beijing’s rights decord as “deplorable” in a magazine interview. China’s current crackdown on dissent, she said, amounted to “a fool’s errand”. But on economic matters, officials were upbeat after talks. “We are seeing very promising shifts in the direction of Chinese economic policy,” US Treasury Secretary Timothy Geithner said.
Source: Todays Zaman
BlackRock New Report ETF Landscape: Industry Highlights - End of April 2011
US$22.4 Bn of net new assets went into United States listed ETFs/ETPs in April 2011. US$16.7 Bn net inflows went into equity ETFs/ETPs, of which US$9.8 Bn went into ETFs/ETPs tracking US equity indices and US$3.5 Bn went into ETFs/ETPs tracking emerging markets equity indices. Fixed income ETFs/ETPs saw net inflows of US$2.9 Bn, of which US$0.7 Bn went into corporate bond ETFs/ETPs and US$0.6 Bn went into Government bond ETFs/ETPs. Commodity ETFs/ETPs saw net inflows of US$1.8 Bn, of which US$2.4 Bn went into ETFs/ETPs providing exposure to precious metals, while ETFs/ETPs providing exposure to energy experienced US$0.9 Bn net outflows in April 2011. Of the US$45.5 Bn of net new assets in United States listed ETFs in April 2011, Vanguard gathered the largest net inflows with US$13.2 Bn, followed by iShares with US$12.7 Bn net inflows, while Bank of New York had the largest net outflows with US$1.4 Bn in 2011 YTD. Global ETF and ETP industry: Record April net inflows with US$25.3 Bn. Record YTD net inflows in the first four months with US$67.2 Bn through the end of April 2011. The global ETF industry had 2,670 ETFs with 6,021 listings and assets of US$1,469.8 Bn, from 140 providers on 48 exchanges around the world at the end of April 2011. This compares to 2,189 ETFs with 4,354 listings and assets of US$1,113.1 Bn from 122 providers on 42 exchanges, at the end of April 2010. The global ETF and ETP industry combined, had 3,819 products with 7,893 listings, assets of US$1,670.9 Bn from 176 providers on 52 exchanges around the world. This compares to 2,967 products with 5,453 listings, assets of US$1,295.1 Bn from 150 providers on 44 exchanges, at the end of April 2010. European ETF and ETP industry: The European ETF industry had 1,128 ETFs with 3,952 listings and assets of US$328.2 Bn, from 39 providers on 23 exchanges at the end of April 2011. This compares to 932 ETFs with 2,748 listings and assets of US$234.3 Bn from 36 providers on 18 exchanges, at the end of April 2010. US$3.6 Bn of net new assets went into European listed ETFs/ETPs in April 2011. US$2.8 Bn net inflows went into equity ETFs/ETPs, of which US$1.6 Bn went into ETFs/ETPs providing emerging markets exposure while ETFs/ETPs providing broad European exposure saw net outflows of US$1.2 Bn. Fixed income ETFs/ETPs saw net outflows of US$0.4 Bn, of which money market ETFs/ETPs experienced US$0.3 Bn net outflows while high yield ETFs/ETPs saw net inflows of US$0.2 Bn. US$1.1 Bn net inflows went into commodity ETFs/ETPs, of which US$0.5 Bn went into ETFs/ETPs providing exposure to precious metals and US$0.4 Bn went into ETFs/ETPs providing broad commodity exposure. Of the US$2.8 Bn of net new assets in European listed ETFs in April 2011, Source Markets gathered the largest net inflows with US$0.9 Bn, followed by db x-trackers with US$0.6 Bn net inflows, while iShares and Lyxor Asset Management had the largest net outflows with US$0.2 Bn. Asia Pacific (ex-Japan) ETF industry: The Asia Pacific (ex-Japan) ETF industry had 250 ETFs with 362 listings and assets of US$58.6 Bn, from 63 providers on 13 exchanges at the end of April 2011. This compares to 168 ETFs with 267 listings and assets of US$44.4 Bn, from 53 providers on 13 exchanges, at the end of April 2010. Japan ETF industry:
The Japanese ETF industry had 84 ETFs with 88 listings and assets of US$29.4 Bn, from seven providers on three exchanges at the end of April 2011. This compares to 70 ETFs with 73 listings and assets of US$26.3 Bn from six providers on two exchanges, at the end of April 2010. There are 178 ETFs which have filed notifications in Japan.
Latin America ETF industry: The Latin American ETF industry had 27 ETFs, with 407 listings and assets of US$10.4 Bn, from four providers on three exchanges at the end of April 2011. This compares to 21 ETFs, with 243 listings and assets of US$9.1 Bn from three providers on three exchanges, at the end of April 2010. Canada ETF industry: The Canadian ETF industry had 180 ETFs and assets of US$43.1 Bn, from four providers on one exchange at the end of April 2011. This compares to 134 ETFs and assets of US$33.0 Bn from four providers on one exchange, at the end of April 2010.
Source: Global ETF Research & Implementation Strategy Team, BlackRock
May 11, 2011--This report highlights the Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) industry at the end of April 2011.br>United States ETF and ETP industry:
Record April net inflows with US$22.4 Bn.
Record YTD net inflows in the first four months with US$51.5 Bn through the end of April 2011.
The ETF industry in the United States had 972 ETFs and assets of US$997.3 Bn, from 29 providers on two exchanges at the end of April 2011. This compares to 839 ETFs and assets of US$764.0 Bn, from 28 providers on two exchanges at the end of April 2010.
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