|DB - Equity Research-Weekly & Monthly European ETF Market Monitors: European ETF industry gets a fresh start in January-continued|
|February 10, 2012--ETF month in perspective|
2012: A fresh start for the European ETF industry
January brought a very strong start to the year for the global (US, Europe and Asia) ETF industry. ETF assets grew by 8.1% over January 2012, a growth rate that surpassed the overall 2011 year growth rate of 3.1%. Global ETF assets reached $1.4 trillion as of the end of January 2011, up from $1.3 trillion at the end of 2011.
|Both the US as well as the European ETF industries grew by 8.2% and 6.5%, reaching asset levels of $1.0 trillion and €221.3 billion respectively. Most of the growth came from rebounding equity markets, however, flows accounted for 2.9% of the growth in the US market and for 1.1% of the growth in the European market (US$ terms). Cash flows for the US market totaled $27.1 billion and €2.4 billion for the European market, for the month of January.
The performance of the European ETF market in the first month of 2012 was sharply different from how it ended the previous year. European ETFs registered outflows of €2.2 billion over December 2011, a decline that was largely driven by equity outflows (€1.8 billion). This situation was reversed in January 2012, with equities contributing €1.5 of net inflows towards the new money that flowed into the European ETF industry.
The January 2012 European ETF industry fresh start was mainly driven by two factors. First, overall market conditions improved somewhat, with the Euro Stoxx 50 delivering gains of 4.3%. Better market conditions helped bring ETF investors out of their shell and allocate money back in the equity market. Second, the European Securities and Markets Authority, ESMA, issued its second consultation on ETFs. ESMA’s publication of its views provided comfort to investors as it gave an indication both about the regulatory body’s future intentions as well as its views with regards to perceived ETF risks.
Overall, the ESMA consultation was deemed to be balanced, avoiding any dramatic changes in the European ETF market, especially those that would put it at odds with how mutual funds operate under UCITS. The consultation provided further evidence that ESMA, through ETFs, which are perceived to be the golden standard in the fund industry, is looking to 'tidy-up' a number of wider fund management industry issues, such as tracking capacity and fund construction, primarily pertaining to total return swaps and securities lending practices .
ETF Industry: The month’s investment trends
The US Market: Flows across the board, from domestic to emerging markets
The US ETF industry registered strong cash flows in the first month of the year totaling $27 billion. Investors favor for risky assets continued in January with equities having the lion’s share in cash inflows ($19.3 billion).
US ETF equity flows were quite diversified, with both domestic as well as emerging markets benefiting. US domestic benchmarked equity ETFs brought inflows of $11.5 billion, while emerging market benchmarked equity ETFs saw inflows of $5.7 billion. Sectors also did well, attracting new money totaling $3.2 billion.
Fixed Income ETFs collected a healthy $7.7 billion in cash inflows; a healthy increase over the $6 billion inflows received in December. Commodity ETVs had a positive month, receiving cash inflows in excess of $1.5 billion which is in sharp contrast to last month’s pattern where commodities registered outflows of $2.7 billion.
For more information about analysis and trends in the US ETF market please refer to our US ETF Market Monthly Review.
The European Market: Emerging Markets main flow growth driver
Equity markets across Europe had a very positive run over the month registering advances across the board: DAX (? 9.5%), CAC (? 4.4%), Euro Stoxx 50 (? 4.3%) and the FTSE 100 Index (? 2.0%). Gold and silver spot prices (US$/oz), also appreciated by 9.8% and 17.6% respectively.
The European ETF industry improved on its poor run in December (outflows of €2.1 billion) and received cash inflows of €2.4 billion in January. Most of the flows went into ETFs tracking equity benchmarks (€1.5 billion) with healthy contributions by other asset classes; Fixed Income ETFs (€412 million), commodities (€331 million) and alternatives (€159 million).
Within equities, emerging markets (EM) benchmarks were back in vogue, collecting cash inflows of €904 million in January. The BRIC countries (Brazil, Russia, India & China) collectively pocketed cash inflows of €365 million while ETFs tracking broad benchmarks like the MSCI EM collected €385 million over the same period. Within ETFs tracking developed markets (DM) benchmarks, a clear divergence was visible: ETFs focused on North American region which includes US & Canada received cash inflows of €672 million while ETFs tracking European benchmarks registered outflows of €663 million. ETFs tracking broader DM benchmarks such as MSCI World received net cash inflows of €107 million over the month of January.
ETFs tracking European sectors registered cash inflows of €171 million in January as compared to outflows of €166 million in the month of December.
Despite the positive equity markets and healthy flows, a hint of bearishness continues to persist as evident from the flows into leveraged and inverse products. ETFs providing inverse and leveraged inverse exposure pocketed inflows of €272 million and €282 million in January respectively. On the other hand ETFs providing leveraged exposure registered cash outflows of €332 million.
Fixed Income ETFs registered cash inflows of €412 million over January as compared to outflows of €404 million in December 2011. ETFs tracking corporate debt issuances and sub-sovereigns collected inflows of €588 million and €117 million respectively. Money market & sovereign ETFs registered outflows of €249 million and €144 million respectively.
Commodity ETPs received cash inflows totaling €498 million in January which is marginally higher than the €198 million received in December 2011. Most of the inflows were into products tracking crude oil (€211 million) and diversified commodity indices (€131 million).
ETP investors approached gold products with caution in January, evident from the inflows totaling €56 million which is significantly lower than the €623 million received in December 2011.
ETF comparatives: Mutual Funds, cash equity turnover
European ETF turnover is 8.0% of the region’s cash equities turnover as of the end of January 2012. The equivalent number for the US market stands at 24.5%.
European ETFs comprised 2.8% of the continent’s mutual fund industry, yet ETF cash flows, €17.7 billion from Jan-Nov 2011, was over 1.4x higher than the corresponding unlisted fund flows (- €44 billion). European unlisted mutual funds registered outflows of close to €138 billion in the months of Aug-Nov 2011. Mutual fund industry data as per the European Fund Management Association (EFAMA).
US ETFs comprised 8.1% of the its mutual fund industry, yet ETF cash flows, $113 billion for 2011, was over 4.7x higher than the corresponding unlisted fund flows ($24 billion). Mutual fund industry data as per the Investment Company Institute (ICI).
|Source: Christos Costandinides, European Head of ETF Research & Strategy, Deutsche Bank|
|Europe ETP News|
|World Bank-Stalling Economic Growth in Emerging Europe and Central Asia|
|Oil price shock and slowdown in Russia impacting region’s growth outlook
April 17, 2015--In the Emerging Europe and Central Asia (ECA) region, lower oil prices and the economic slowdown in Russia are weighing heavily on many economies in Eurasia, while countries in the Eurozone are benefiting from lower oil prices and a modest economic recovery.
|Van Eck Global lists first Market Vectors UCITS ETFs in Europe on the ISE|
|April 15, 2015--Van Eck Global Investments Ltd., a subsidiary of Van Eck Global, one of the largest provider of exchange-traded funds (ETFs) in the U.S. and the sponsor of Market Vectors ETFs, has listed its first Market Vectors UCITS ETFs in Europe on the ISE.|
|Euro Area Securities Issues Statistics: February 2015|
|April 13, 2015--The annual rate of change of the outstanding amount of debt securities issued by euro area residents decreased from -0.6% in January 2015 to -0.9% in February.|
|Euro area economic and financial developments by institutional sector (Early release)|
|April 13, 2015--Loans to households increased after being unchanged in the previous quarter (0.2% after 0.0%).|
Household financial investment increased at a broadly unchanged annual rate (1.6% after 1.5%).<
|Cantor Fitzgerald's ETF team sees growth in IFA interest in the UK|
|April 9, 2015--One of the largest and most experienced ETF full service trading teams in the business arrived at financial services firm Cantor Fitzgerald in December 2013|
|Euro area quarterly balance of payments and international investment position (fourth quarter of 2014)|
|April 9, 2015--Euro area quarterly balance of payments and international investment position (fourth quarter of 2014)
The current account of the euro area showed a surplus of €212.7 billion (2.1% of euro area GDP) in 2014.
|UK platforms struggle to keep up with ETF demand|
|April 8, 2015--Platforms are struggling to cope with the rapid increase in demand for passive investments, especially exchange traded funds, according to an outsourcing provider for the industry.|
|Deutsche Borse launches new ShortDAX and LevDAX indices|
|April 8, 2015--Deutsche Börse today expanded its DAXplus strategy index offering with the launch of four new ShortDAX and LevDAX indices. The ShortDAX x9 and x10 indices and LevDAX x9 and x10 indices meet the needs of sophisticated market participants, based on different evaluations of market conditions, who are seeking access to leveraged investments in the DAX when prices rise or fall.|
|New UBS bond index ETF launched on Xetra|
|ETF offers access to US corporate bonds with currency hedging
April 8, 2015--A new bond index ETF on liquid US investment grade corporate bonds from UBS Global Asset Management has been tradable on Xetra in Deutsche Börse's XTF segment since Wednesday.
|BlackRock expands currency-hedged ETF range|
|April 7, 2015--BlackRock has expanded its currency-hedged exchange traded fund (ETF) range with the launch of the iShares MSCI Europe ex-UK GBP Hedged Ucits ETF and the iShares JPX-NIKKEI 400 EUR Hedged Ucits ETF, providing investors with hedged exposure to European and Japanese equity markets respectively.|
|HM Treasury- national statistics: UK official holdings of international reserves: March 2015|
|April 7, 2015--This monthly release shows details of movements in the UK's official holdings of international reserves, or assets.|
|Xetra-15 years as Europe's leading ETF trading venue|
|1,057 ETFs now on offer/Record turnover for Q1|
April 7, 2015--On 11 April 2000, Deutsche Börse became the first European stock exchange to offer trading in exchange-traded funds (ETFs) with its XTF segment.
|New iShares ETF launched on Xetra|
|ETF offers access to Japanese stock corporations with currency hedging
April 7, 2015--A new equity index fund from BlackRock has been tradable on Xetra in Deutsche Börse's XTF segment since Tuesday.
Name: iShares JPX-Nikkei 400 EUR Hedged UCITS ETF
Asset class: equity ETF
Total expense ratio: 0.45 percent
|Northern Trust Monthly Funds Market Review: New Irish fund structure officially launched/Record highs for assets in European listed ETPs/Northern Trust voted Best European ETF Fund Administrator|
|April 7, 2015--Th Monthly Funds Market Review from Northern Trust is now available for download.
This month's highlights include:
|Advertising data reveal big fund house spenders|
|April 5, 2015--Advertising spending by Invesco Perpetual tripled last year.|
|ECB says QE programme already boosting recovery|
|April 3, 2015--The European Central Bank said Thursday it is increasingly confident that its controversial bond purchase programme is helping boost the eurozone's economic recovery, even as a top official expressed doubts about its effectiveness.|
|ECB says national central banks have flexibility on quantitative easing bond loans|
|April 2, 2015--The ECB laid out plans on Thursday to make bonds bought in its 1 trillion-euro stimulus programme available for borrowing, but said national central banks would have some flexibility in how they applied them.|
|OECD-France must continue its reform process to boost growth and jobs|
|April 2, 2015--France has begun implementing a series of important pro-growth structural policy measures, but boosting medium-term growth will require more ambitious action to reform the labour market, curb high levels of public spending and taxation and create jobs, according to the latest OECD Economic Survey of France.|
|HM Treasury-Statistics-national statistics: GDP deflators at market prices, and money GDP: March 2015|
|April 2, 2015--HM Treasury Statistics-national statistics: GDP deflators at market prices, and money GDP: March 2015(Quarterly National Accounts)is now available.|
|Top ECB official sceptical about bond purchases: report|
|April 2, 2015--One of the members of the European Central Bank's executive board, Sabine Lautenschlaeger, expressed doubt Thursday that the ECB's controversial bond purchase programme will have the desired effect.|
|Boerse Stuttgart generates turnover of around EUR 10.9 billion in March|
|April 2, 2015--Highest trading volume since August 2011/Record turnover from trading in equities and exchange-traded products|
|IMF-Russia Economic Report 33: The Dawn of a New Economic Era?|
|April 1, 2015--The World Bank projects a negative growth outlook for Russia in 2015-2016, with the economy expected to contract by 3.8 percent in 2015 and modestly decline by 0.3 percent in 2016.|
|Turnover at Deutsche Borse's cash markets at 162.6 billion euros in March|
|April 1, 2015--Order book turnover on Xetra, Börse Frankfurt and Tradegate Exchange across all asset classes stood at €162.6 billion in March (March 2014: €120.2 billion).|
|A guide to the FCA's new benchmark regulation powers|
|April 1, 2015-The UK's markets regulator on Wednesday assumes formal oversight of seven more benchmarks, adding to its existing supervision of the|
|EU lawmakers broaden commodities waiver in benchmarks bill|
|March 31, 2015--Securities market indexes, oil-price reports and other commodity indicators won wider exemptions from draft EU rules on financial benchmarks in a European Parliament committee vote today.|
|Eurex Margin Call Said to Be Behind DuessHyp's Collapse|
|March 31, 2015--The near-collapse of Duesseldorfer Hypothekenbank AG, the German lender hit by Heta Asset Resolution AG's debt moratorium, was prompted in part by a margin call from Eurex, people familiar with the matter said.|
|S&P Dow Jones Indices-Europe Index Dashboard|
|March 31, 2015--The European equity markets have been enjoying their stimulus: the S&P Europe 350(R) added a further 1.8% during March, bringing the quarter's total gain to a whopping 16.8%.|
|Europe's proposed commodity position limits prompt concern|
|March 31, 2015--Major commodity traders in Europe are increasingly concerned about a regulatory proposal to put position limits on about 1,900 commodity|
|ESMA publishes updated EMIR Q&A-No 12|
|March 31, 2015--The European Securities and Markets Authority (ESMA) has today issued the 12th update of its Q&A document on the implementation of the European Markets Infrastructure Regulation (EMIR).|
|Benchmarks: restoring confidence in the financial markets|
|March 30, 2015--Benchmarks are widely used to track market developments, however financial scandals involving benchmarks such as Libor and Eurobibor have shown that they are susceptible to manipulation.|
|First products on the IBEX 35 X10 leverage net & IBEX 35 X10 short indices listed on BME|
|March 30, 2015--Offering bullish and bearish exposure that is 10 times as much as the daily performance of the IBEX 35(R) NET RETURN|
|OECD-Swedish economy resilient but needs to focus on productivity and human capital to keep its edge|
|March 30, 2015--The Swedish economy has been among the most resilient in Europe, despite the slow global recovery and high uncertainty, but challenges remain if it is to maintain high growth and well-being and extend prosperity to all, according to the latest OECD Economic Survey of Sweden.|
|Pimco drops out of top-10 asset management brands in Europe|
|March 29, 2015--Pimco has dropped out of a coveted list of the top 10 asset management brands in Europe.|
|Source announces changes to management team|
|March 27, 2-15--Source, an investment firm and one of the market-leading European providers of Exchange Traded Products (ETPs), announces two significant changes to its management team.|
|ESMA-Draft technical standards under Article 10a(8) of MiFID on the assessment of acquisitions and increases in qualifying holdings in investment firms|
|March 27, 2015--Summary
Article 10b(4) of the Markets in Financial Instruments Directive (MiFID ) requires Member States to make publicly available the information necessary to carry out the assessment of a proposed acquirer of an investment firm.
|IMF Working paper-Spillovers in the Nordic Countries|
|March 27, 2015--Summary: Denmark, Finland, Norway, and Sweden form a tightly integrated region which has strong ties with the euro area as well as some exposure to Russia.|
|Central banks call for lower capital requirements on top-quality pooled debt|
|March 27, 2015-Bonds based on high-quality loans should benefit from lower capital requirements to kick-start the market in Europe, the Bank of England and European Central Bank (ECB) said on Friday.|
|Russia business sentiment bounces back in March|
|March 27, 2015--Russian business sentiment improved in March from a record low in the previous month, although a further decline in orders suggests that the recovery may be short-lived, according to the MNI Russia Business Sentiment Indicator.|
|Vanguard chief plans two-pronged UK retail market assault|
|March 27, 2015--US asset management giant Vanguard is weighing up a two-pronged assault on the UK's growing retail investment market,|
|Unscheduled adjustment in MDAX: CTS Eventim AG & Co. KGaA to replace TUI AG|
|March 27, 2015--Deutsche Börse today announced adjustments to its indices MDAX and SDAX.|