|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|
|STOXX Launches Daily Currency Hedged Versions Of Key Indices|
|EURO STOXX 50 Daily GBP Hedged and EURO STOXX 50 Daily USD Hedged Indices licensed to Lyxor ETF
March 26, 2015--STOXX Limited, a leading provider of innovative, tradable and global index concepts, today introduced daily currency hedged versions of the EURO STOXX 50, EURO STOXX, EURO STOXX Select Dividend 30, STOXX Europe 600 and STOXX Europe Select Dividend 30 indices.
|Draft guidelines on complex debt instruments and structured deposits|
|March 24, 2015--Who should read this paper
This paper is primarily of interest to competent authorities and firms that are subject to MiFID, in particular, investment firms and credit institutions performing investment services and activities.
|Three new db x-trackers ETFs launched on Xetra|
|ETFs provide access to small, mid and large cap US stocks|
March 24, 2015-Three new db x-trackers ETFs from the product family section of Deutsche Asset & Wealth Management have been tradable in Deutsche Börse's XTF segment on Xetra since Monday.
Name: db x-trackers S&P 500 UCITS ETF (Prospective DR)
Asset class: equity index ETF
Ongoing charges: 0.30%
|ESMA-Call for evidence on private and bilateral SFIs|
|March 20, 2015--Summary|
This call for evidence should be read by all those involved in the EU securitisation markets. It is particularly targeted at the following market participants and the groups and trade associations who represent them:
Issuers, originators and sponsors of Structured Finance Instruments (SFIs);
|EBA consults on exposures to shadow banking|
|March 19, 2015--The EBA launched a public consultation on its guidelines proposing criteria to set limits on EU institutions' exposures to shadow banking entities.|
|New iShares ETF launched on Xetra|
|ETF provides access to UK real estate sector|
March 19, 2015--A new iShares ETF from BlackRock's product offering has been tradable in Deutsche Börse's XTF segment on Xetra since Thursday.
Name: iShares MSCI Target UK Real Estate UCITS ETF
Asset class: equity index ETF
Ongoing charges: 0.40 percent
|ESMA sees increased convergence in automated trading supervision|
|March 18, 2015--The supervision of automated trading has become more convergent across the European Union (EU), a recent review by the European Securities and Markets Authority (ESMA) has found. ESMA reviewed how the 30 national competent authorities (NCAs) across the EU have implemented ESMA guidelines on automated trading into their day-to-day supervision of trading platforms.|
|BlackRock launches UK real estate ETF|
|March 18, 2015--BlackRock has launched the iShares MSCI Target UK Real Estate Ucits ETF with the aim of achieving risk and return profile similar to physical real estate.|
|New Bank of England regulator warns of risks from U.S, rate hikes, dollar strength|
|March 17, 2015--The start of U.S. interest rate rises could inject volatility into global financial markets and create risks for Britain's financial stability, a new member of the Bank of England's top panel of financial regulators said on Tuesday.|
|Lyxor-Monthly European ETF Market Trends-FEB 2015 in brief|
|March 16, 2015--European ETF market flows for February 2015 came very close to last month's three-year record high. Net New Assets (NNA) over the month totalled EUR 10.4 billion. Total Assets under Management are up 17% vs. the end of 2014, reaching EUR 424 billion, and including a significant market impact (+6.8%*).|
|Dax breaks 12,000 barrier|
|March 16, 2015--Germany's Dax index broke through and closed above the 12,000 barrier for the first time on Monday as German equities emerged as the main beneficiaries of the European Central Bank's quantitative easing programme.|
|Unscheduled free float adjustment in MDAX|
|March 16, 2015--Deutsche Börse AG has announced an unscheduled adjustment to the free float of DMG MORI SEIKI AG O.N. in MDAX.|
|Source JPX-Nikkei 400 UCITS ETF launched on Xetra|
|ETF provides access to the performance of Japanese stock corporations|
March 16, 2015--A new equity index fund from the ETF offering issued by Source has been tradable on Xetra in Deutsche Börse's XTF segment since Monday.
Name: Source JPX-Nikkei 400 UCITS ETF (EUR hedged)
|Source launches currency-hedged share classes of its JPX-Nikkei 400 ETF|
|March 16, 2015--Source, a leading provider of Exchange Traded Products (ETPs), is pleased to announce the launch of USD-and EUR-hedged share classes of the Source JPX-Nikkei 400 UCITS ETF.|
|Assets invested in ETFs/ETPs listed in Europe reached a new record high of US$494 billion at the end of February 2015, According To ETFGI|
|March 15, 2015--Assets invested in ETFs/ETPs listed in Europe reached a new record high of US$494 billion at the end of February 2015, according to ETFGI's monthly ETF and ETP global insight report for February.|
|Norway takes action against closet-tracking|
|March 15, 2015--The Norwegian regulator has become the first in Europe to accuse a bank of mis-selling a "closet tracking" fund-products that charge high fees for active management but mimic an index.|
|Pension funds seek riskier, illiquid bets to make returns they need|
|March 14, 2015--British pension funds are coping with low bond yields and high share prices by seeking riskier investments, in a hunt for the returns they need to meet their obligations to pensioners.|
|EU states agree position for final deal to regulate market benchmarks|
|March 13, 2015--European Union states agreed a common position on Friday to regulate market benchmarks, opening the door to negotiations on a final agreement with lawmakers on new rules to avoid more damaging market rigging scandals.|
|Dutch regulator to probe active ETFs|
|March 12, 2015--The Dutch regulator says it will focus on active exchange traded funds as part of a recently announced investigation into areas of overlap between active and passive funds.|
|ESMA sees continued tense securities market conditions|
|March 11, 2015--The European Securities and Markets Authority (ESMA) has published its Report No. 1, 2015 on Trends, Risks and Vulnerabilities in European Union (EU) securities markets, covering market developments from July to December 2014.|
|ECB-Euro area securities issues statistics: January 2015|
|March 11, 2015--The annual rate of change of the outstanding amount of debt securities issued by euro area residents was -0.5% in January 2015, the same as in December.|
|Banks, bond dealers step up fight against ESMA disclosure rules|
|March 11, 2015--Financial industry officials have stepped up a fight against draft EU rules for disclosure in bond markets,|
|Ossiam adds income-distributing share class to FTSE 100 Minimum Variance ETF|
|March 11, 2015--Ossiam, a leading provider of smart beta exchange-traded funds, has introduced a distributing share class to the Ossiam FTSE 100 Minimum Variance UCITS ETF.|
|Lyxor expands Euro govies range with ultra long-duration ETF|
|March 11, 2015--Lyxor Asset Management has announced the launch of a new exchange-traded fund providing access to ultra long-duration eurozone bonds: the Lyxor Ultra Long Duration Euro Govt FTSE MTS 25+Y UCITS ETF (DR) C-EUR.|
|New ETF issuer: WisdomTree|
|March 10, 2015-SIX Swiss Exchange welcomes its 19th ETF issuer which enters the Swiss market with six products.|
|Bank of England-Investment banking: linkages to the real economy and the financial system|
|March 10, 2015--Investment banks play a key role in capital markets and contribute to the efficient functioning of financial markets. As demonstrated in the recent financial crisis, however, investment banks can create and propagate risks in the financial system given their scale, as well as the interconnected and complex nature of their activities.|
|Xetra-Gold registers new record high in gold holdings|
|Deutsche Börse Commodities stores 54.4 tonnes for physical backing of gold bond
March 10, 2015--The gold holdings of Deutsche Börse Commodities for the physical backing of the Xetra-Gold bond reached a new record high of around 54.4 tonnes in March, an increase of more than 4.5 tonnes since the beginning of the year.
|UPDATE 1-British ETF price war heats up with BlackRock FTSE 100 fee cut|
|March 10, 2015--Cost for two flagship ETFs now 7 pence/100 stg invested
Market could go as low as 3 pence-Hargreaves Lansdown
Adds emerging market, niche fund fees likely to fall next
|UBS unveils currency-hedged commodities ETF|
|March 10, 2015--UBS Global Asset Management has expanded its line-up of currency-hedged exchange-traded funds with the launch of the UBS ETF (IE) CMCI Composite hedged GBP SF UCITS ETF (UC90).|
|London Stock Exchange March 2015 ETF & ETP Monthly Report|
|March 10, 2015--News
London Stock Exchange is introducing two new order types in May 2015, Cross Orders and Block Trade Facility for ETFs and ETPs. The order types will facilitate bringing bilaterally agreed trades on Exchange.
London Stock Exchange, in partnership with Boost ETP, a WisdomTree Company, ETF Securities, FTSE and Societe Generale, is hosting an event dedicated to short and leveraged ETPs.
|WisdomTree to double UK ETF offering|
|March 9, 2015--WisdomTree Europe, the European branch of the North American exchange traded fund business WisdomTree Investments, plans to bring another six to eight ETFs onto the UK market over the next three to six months.|
|New UBS ETF launched on Xetra|
|ETF provides currency-hedged access to the CMCI commodity index|
March 9, 2015--A new exchange-listed commodity index fund from the UBS Global Asset Management product range has been tradable in Deutsche B€rse's XTF segment since Monday.
ETF name: UBS ETFs plc-CMCI Composite SF UCITS ETF (GBP) A-acc
|Euro-Area Bond Gains Send Yields to Records on ECB Buying Plans|
|March 9, 2015--Government bonds across the euro area advanced, sending yields to record lows, as investors absorbed details of the European Central Bank's extended sovereign debt-purchase program.|
|ESMA trade reporting standards "could decide" future of markets|
|March 9, 2015--The European Securities and Markets Association is consulting financial institutions on which messaging protocol and data formats would be best for trade reporting under MiFIR.|
|ESMA clarifies its interest rate swaps clearing standards|
|March 9, 2015--The European Securities and Markets Authority (ESMA) has today published a revised opinion on its draft Regulatory Technical Standard (RTS) on the clearing obligation for Interest Rate Swaps (IRS).|
|Row erupts as EU backtracks on index data transparency|
|March 8, 2015-- Scandals over the rigging of interbank interest rates such as Libor and Euribor and the alleged fixing of gold and silver prices have highlighted the dangers of a lack of transparency in the calculation of indices and benchmarks.|
|HM Statistics: Forecasts for the UK economy: February 2015|
|March 6, 2015--Forecasts for the UK economy is a monthly comparison of independent forecasts. This edition contains short term forecasts for 2014, 2015 and 2016, and medium term forecasts to 2019.|
|New UBS ETF launched on Xetra|
|ETF provides access with currency hedging to MSCI Canada index|
March 6, 2015--A new equity index fund from the UBS Global Asset Management product family has been tradable on Xetra in Deutsche Börse's XTF segment since Friday.
ETF name: UBS ETF-MSCI Canada UCITS ETF (hedged to EUR) A-acc
Asset class: equity index ETF
|European Parliament moves toward regulation of benchmarks|
|March 5, 2015--Cora van Nieuwenhuizen, the lawmaker leading an EU proposal to regulate financial benchmarks, said leaders are working toward a compromise.|
|UK official holdings of international reserves: February 2015|
|March 4, 2015--This monthly release shows details of movements in the UK's official holdings of international reserves, or assets. These consist of gold, foreign currency assets and International Monetary Fund assets.|
|GFT Technologies AG to be included in TecDAX|
|March 4, 2015--On Wednesday Deutsche Börse decided on changes in its selection indices which will become effective on 23 March 2015.|
|Vanguard's march to Europe tracks ECB's quantitative easing|
|March 4, 2015--Vanguard, one of the world's largest providers of passive investment products such as index-tracking funds, has been a big and powerful presence in the US mutual fund market for years.|
|Revised lists of the Moscow Exchange Indices announced|
|March 3, 2015--Moscow Exchange has revised lists for the constituent lists of the Moscow Exchange Indices as well as free floats effective from March 18, 2014 through June 16, 2014.|
|Boerse Stuttgart generates turnover of around EUR 8.6 billion in February|
|Trading volume up on February 2014//Brisk trading in corporate bonds
March 3, 2015--According to its order book statistics, turnover at Boerse Stuttgart amounted to around EUR 8.6 billion in February 2015. This meant the trading volume was down in comparison with January, when turnover was particularly high, but up by almost 7 percent year on year.
|STOXX announces component changes to STOXX Eastern Europe 50 Index|
|March 3, 2015--STOXX Limited, a leading provider of innovative, tradable and global index concepts, today announced component changes in the STOXX Eastern Europe 50 Index due to the regular semi-annual review.|
|Turnover at Deutsche Boerse's cash markets at 125.5 billion euros in February|
|March 2, 2015-Order book turnover on Xetra, Börse Frankfurt and Tradegate Exchange across all asset classes stood at €125.5 billion in February (February 2014: €102.6 billion).|
|Russia Moves to Shore Up Budget|
|Finance minister outlines cuts in social and maybe even military spending as well as raising pension age|
March 2, 2015--Faced with lower oil prices and a slowing economy, Russia needs to trim its budget,
|ETF Flows Show Investors Flocking to the Eurozone|
|March 2, 2015--The steady stream of evidence that shows investors barelling back into eurozone equities just got its latest datapoint: Exchange-traded funds with eurozone exposure received inflows of $19.3 billion so far this year|
|IMF Working paper-A Global Projection Model for Euro Area Large Economies|
|March 2, 2015-- Summary: The GPM project is designed to improve the toolkit for studying both own-country and cross-country linkages. This paper creates a special version of GPM that includes the four largest Euro Area (EA) countries.|
|European Banking Authority Delivers Benchmarking Package|
|March 2, 2015--The European Banking Authority (EBA) published a set of papers for benchmarking the internal approaches that EU institutions use to calculate own-funds requirements for credit and market risk exposures. The EBA final draft Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS) specify in detail the framework for EU institutions and competent authorities to carry out the annual supervisory benchmarking foreseen by the Capital Requirements Directive (CRD IV).|
|DeAWM's db X-trackers ETFs introduces range of interest rate hedged fixed income ETF share classes|
|February 28, 2015--Deutsche Asset & Wealth Management (DeAWM) has launched a range of interest rate hedged fixed income ETF share classes.|
|Fund sales slump in January|
|February 27, 2015--Sales of investment funds to retail investors totalled just €320m in January, little more than a quarter of the €1.25bn sold in the same month last year, when optimism about equity markets was high.|
|Financial Stability Paper 33: A European Capital Markets Union: implications for growth and stability|
|February 27, 2015--Capital Markets Union (CMU) is an overarching term used to describe a number of possible measures aimed at diversifying and integrating European capital markets to support economic growth and stability.|
|S&P Dow Jones Indices-Europe Index Dashboard|
|February 27, 2015--The European equity markets have been having a ripping year so far and the S&P Europe 350 added a further 6.9% during February, bringing the year-to-date returns to 14.7%.|
|Deutsche Börse welcomes WisdomTree Europe as new ETF issuer on Xetra|
|ETFs track smart beta index strategies
February 26, 2015--Six exchange-traded funds (ETFs) issued by WisdomTree Europe have been tradable on Xetra for the first time since Thursday.
|Best Execution under MiFID|
|February 25, 2015--The European Securities and Markets Authority (ESMA) has conducted a peer review on how national regulators (national competent authorities or NCAs) supervise and enforce the MiFID provisions relating to investment firms' obligation to provide best execution, or obtain the best possible result, for their clients when executing their orders.|
|Two new ComStage ETFs launched on Xetra|
|ETFs offer access to corporate stocks from Italy and Spain
February 25, 2015--Two new equity index ETFs issued by ComStage have been tradable in Deutsche Börse's XTF segment since Wednesday.
|Bank regulation takes back seat to kick-starting economy|
|February 25, 2015--As the banking crisis fades in memory, only to be replaced by a lingering economic slowdown, governments are losing interest in financial reform despite warnings that dangers still lurk.|
|Money market funds set for partial reprieve in EU vote-document|
|February 25, 2015--Europe's trillion euro money market funds industry faces major reform on Thursday when European Union lawmakers vote on new rules aimed at avoiding investor runs in a crisis.|
|Broker-Research Payment Plans Face EU Lawmaker Skepticism|
|February 25, 2015--European Union plans to rein in asset managers who use clients' money to pay for research face resistance from legislators concerned that the proposed rules could harm small business.|