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Van Eck files with the SEC
August 24, 2011--Van Eck has filed a post-effective amendment, registration statement with the SEC for the
European Currency High Yield Bond ETF (HYE).
view filing
Source: SEC.gov
Chile: Selected Issues
August 24, 2011--A. Introduction
1. Chile’s exchange rate has appreciated in recent years alongside the copper price boom. The appreciation has raised concerns about the competitiveness of Chile’s nonmineral
exports. This paper uses two approaches to assess competitiveness. First, the IMF’s Consultative Group on Exchange Rate Issues (CGER) methodologies are applied to assess the alignment of the overall real exchange rate with economic fundamentals.
Second, an analysis of exchange rates and competitiveness is done at a sectoral level. The main finding
is that Chile’s real exchange rate is broadly in line with fundamentals. The sectoral analysis suggests that competitive pressures have been more pronounced in the industrial sector,
pointing to the need to increase productivity and diversify into higher-value added products in this sector to maintain competitiveness.
2. The chapter is organized as follows: Section II discusses the stylized facts on Chile’s trade performance; Section III assesses the exchange rate level using the IMF’s CGER methodology; Section IV studies external competitiveness by sector; and finally, Section V concludes. An appendix contains more details on methodology and data description.
B. Stylized Facts
3. Chile’s exports have been increasingly dominated by mining, in particular copper exports, since 2003 (Figure 1). The share of copper exports in Chile’s total exports increased from 36 percent in 2003 to 57 percent in 2010, while the share of industrial and agricultural exports2 declined from 43 and 10 percent in 2003 to 27 and 6 percent in 2010, respectively. Copper exports increased from US$7.8 billion in 2003 to US$40.3 billion in 2010. The ratio of copper exports to nominal GDP also increased from 11 to 20 percent.
view the IMF report-Chile: Selected Issues
Source: IMF
Global X Funds Now On Dorsey Wright Platform
August 24, 2011--Global X Funds, the New York based provider of exchange traded funds, today announced the partnership with Dorsey Wright & Associates' (DWA), an independent registered investment advisory firm. The ETF provider is pairing up with DWA to market the Global Opportunities portfolio, a global portfolio based off of relative strength.
Dorsey Wright's relative strength methodology has long been a vehicle for advisors utilizing ETFs. Global X Funds passively managed ETFs, broken down into Developed Markets, Emerging Markets, Commodity Producers, Income Producers and Special Opportunities fund suites, will be selectively available in the portfolio.
“Dorsey Wright’s expertise in relative strength and technical analysis provides an additional resource to our investors’ portfolio allocation tactics,” said Bruno del Ama, chief executive officer of Global X Funds.
"We are rarely interested in timing precise tops and bottoms in a market, but are very interested in finding the strongest of performance trends within an asset class, and staying with them. We feel our relative strength-based approach is as adept a means for identifying such trends as exists today, and when applied in a disciplined fashion can help investors get the most out of a dynamic fund lineup such as Global X's,” said Tom Dorsey, President Dorsey, Wright & Associates.
Source: Global X
Chavez formalizes nationalization of gold industry
August 24, 2011--Venezuelan President Hugo Chavez signed a decree on Tuesday formalizing the nationalization of his country's gold mining industry, a move aimed at giving the government total control over gold produced in the South American country.
Speaking during a televised speech, Chavez also announced the repatriation of $11 billion in Venezuelan gold reserves currently held in US and European banks would begin within several weeks. Chavez did not offer details how the new decree differs from a 1965 law that nationalized gold mining. In 1977, the government granted itself exclusive rights to extract gold. But he suggested it would give authorities increased powers to evict wildcat miners from illegal mines.
read more
Source: Todays Zaman
BNY Mellon Clearing Joins CME Group for OTC Clearing
August 23, 2011--BNY Mellon Clearing, LLC announced today that it has joined CME Group as a clearing member firm in order to clear over-the-counter interest rate swaps on behalf of its institutional clients.
As a result of recent regulatory changes, it is expected that a large percentage of derivatives transactions will be cleared through central clearinghouses. The Dodd-Frank Act passed in the United States last year mandated clearing of "standardized" OTC derivatives.
"The standardization of OTC derivatives and migration to central clearing should reduce counterparty credit risk and allow better regulatory oversight," said Sanjay Kannambadi, CEO of BNY Mellon Clearing. "By joining CME Group as a clearing member for OTC interest rate derivatives, we have partnered with one of the leading and most respected derivatives clearinghouses and expanded the options available to our clients."
read more
Source: BNY Mellon
ETFs: Growing Up
August 23, 2011--Exchange-traded funds have been lauded for their efficiency and cost effectiveness over traditional fund structures. As their global and market expansion quickens—assets are on pace to exceed $2 trillion by 2015, according to a new study— Joe Keenan, head of Global Exchange Traded Fund Services at BNY Mellon Asset Servicing, speaks with Global Custodian about what is behind the growth and what the world’s largest global custodian can do for ETFs as they evolve
GC: What are the major reasons behind the rapid growth of exchange-traded funds and related products?
JK: The primary reason is that the exchange-traded fund product structure simply offers a better mousetrap. It is a fundamental en-hancement over more traditional fund struc-tures. Depending on the market, some of the inherent costs have been either addressed, or improved upon, by ETFs. For instance, with most traditional funds investors buy or sell their shares at the end of day net asset value. Inevitably, you get the price that reflects the impact of all the market decisions that have happened throughout the day. So that is one fundamental restriction that ETFs address, be-cause you can buy and sell them throughout the day based upon the quoted price on the exchange. This offers a real advantage.
read more
Source: BNY Mellon
PowerShares files with the SEC
August 23, 2011-PowerShares has filed a post-effective amendment, registration statement with the SEC for the
PowerShares KBW Bank Portfolio
(KBWB)
PowerShares KBW Capital Markets Portfolio (KBWC)
PowerShares KBW Insurance Portfolio (KBWI)
PowerShares KBW Regional Banking Portfolio (KBWR)
view filing
Source: SEC.gov
DB Global Equity Research: US ETF Market Weekly Review : GLD overtakes SPY as the largest ETP due to risk off trade
August 23, 2011-Risk off trade continues expanding amidst glooming economic outlook
This week's title says it all. Market sentiment kept wearing down throughout last week, especially after the Philly Fed Survey results came out significantly lower-than-expected increasing the likelihood of recession thus taking a toll on the equity markets. Equity markets in the US (S&P 500) plunged by 4.69% by the end of last week, while Gold prices advanced 6.02%. Market movements and flows have crowned a new king among ETPs: GLD.
The total US ETP flows from all products were $1.1bn of inflows last week vs $7.5bn of outflows the previous week, setting the YTD weekly flows avg. at +$1.7bn.
As weeks go by we just see signs of expansion for the risk off trade. Within long only US ETPs, Equity products added another round of outflows (-$3.1bn) last week and completed 4 weeks of straight negative flows for a total of -$18.7bn in such period. At the same time, we have seen increasing and consistent inflows to Fixed Income and Commodity ETPs. Last week Fixed Income funds received $2.0bn of inflows, lead by IG funds with $1.6bn; similarly Commodity ETPs also received $2.0bn in inflows, driven almost exclusively by Gold products with $1.9bn. On a quarter to date basis, Equity, Fixed Income, and Commodity products have recorded flows of -$8.7bn, +$4.5bn, and +$6.2bn (Figure 1).
Recently, another face of the risk off trade has been most notable among long only US-focused Sector ETPs. Flows pattern among sectors grouped by business cycle sensitivity suggest that fears about a US recession have increased. In the risk off trades earlier this year we had seen outflows from Global Cyclicals, inflows to Defensives, and flat flows to Domestic Cyclicals, suggesting that most of the defensive trade was being fueled by global growth concerns; however sector allocations took a clear shift during last week with Domestic Cyclicals experiencing massive outflows of $2.9bn, while Global Cyclicals recorded $1.6bn of outflows and Defensives received $518m in inflows (Figure 2).
New Launch Calendar: Multiple Asset Class choices joined the ETF offering
There were four new ETPs and one ETN launched in the NYSE Arca during the last week. The new products offer access to US Mortgage REITs, Target Date funds, Emerging Markets Small Cap stocks and Volatility exposure
Turnover Review: floor activity pulls back after record highs
Total weekly turnover decreased by 40.8% to $516bn vs. $872bn in the previous week. The largest decrease was on Equity ETP turnover which fell by $308bn or 40.3% to $456bn. Commodity ETPs turnover decreased by $26bn to $33.9bn last week, mainly driven by Precious Metals ETPs. Finally, Fixed Income products turnover decreased by 47.1% totaling $21.9bn at the end of last Friday.
Assets Under Management (AUM) Review: AUM "recession"
The economy may not be in recession yet, but ETP AUM growth already entered into negative territory for 2011. Assets dropped by $20.5bn or 2.1% falling to $982bn as of the end of last Friday. On a YTD basis ETPs have recorded negative growth of 1.3% or a $13.4bn slip.
to request report
Source: Deutsche Bank - Equity Research
Vanguard to launch six ETFs in Canada
August 23, 2011--U.S. investment fund goliath Vanguard Group Inc. has filed a preliminary prospectus to launch six exchange-traded funds (ETFs) in Canada.
The stock ETFs include Vanguard MSCI Canada and the Vanguard MSCI Emerging Markets, as well as the Vanguard MSCI U.S. Broad Market and Vanguard MSCI EAFE, which will both be hedged to Canadian dollars. The bond category includes Vanguard Canadian Aggregate Bond and Vanguard Canadian Short-Term Bond ETFs.
Vanguard, founded by index-investing champion John Bogle and known for its rock-bottom fees, is the latest player to jump into the Canadian ETF market that is dominated by the iShares Canada division of U.S.-based Blackrock Inc.
read more
Source: Globe and Mail
FlexShares files with the SEC
August 22, 2011--FlexShares has filed a third amended and restated application for exemptive relief with the SEC.
view filing
Source: SEC.gov
