|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|
|Borsa Italiana-ETFstat January 2015|
|February 20, 2015--New Listing
ETFplus market welcomed a new issuer: WisdomTree launched on the market 6 ETFs
In January 11 new instruments were listed on ETFplus market
At the end of January there were listed 920 instruments (664 ETFs and 256 ETCs/ETNs)
|Natixis set to buy French group DNCA|
|February 19, 2015--Natixis is in exclusive talks regarding a bid to add French asset manager DNCA Finance to its suite of global investment management affiliates.|
|Banks Seek Easing of 'Draconian' EU Equity Research Plan|
|February 19, 2015--Investment banks want the European Union to scale back potentially "draconian" draft rules that would rein in asset managers using clients' money to pay for equities research.|
|Deutsche Börse to make unscheduled adjustment in MDAX: Bertrandt AG to replace Gagfah S.A. (tendered)|
|February 19, 2015--Due to its anticipated merger with Deutsche Annington SE, the tendered share class of Gagfah S.A. (ISIN LU1152862774), which is currently listed in MDAX, will be delisted from stock trading as of 24 February 2015 upon request of the company.|
|Four new SPDR Smart Beta ETFs launched on Xetra|
|ETFs use value-weighted based strategy with a focus on Europe and the USA
February 19, 2015--Four new equity index funds from the ETF offering issued by SPDR (State Street Global Advisors) have been tradable in Deutsche Börse's XTF segment on Xetra since Thursday.
ETF name: SPDR MSCI Europe Value Weighted UCITS ETF
Asset class: equity index ETF
|SSGA launches four value-weighted smart beta ETFs|
|February 19, 2015--State Street Global Advisors (SSGA), the asset manager behind the SPDR brand of exchange-traded funds, has announced the launch of four smart beta ETFs linked to the MSCI Value Weighted Index family.|
|Statistics: Forecasts for the UK economy: February 2015|
|February 18, 2015--The Statistics: Forecasts for the UK economy: February 2015 are now available.|
|ESMA publishes Addendum Consultation Paper to implementing rules for MiFID II/MiFIR|
|February 18, 2015--The European Securities and Markets Authority (ESMA) has published today a consultation paper (CP) which complements the transparency section of the CP on MiFID II/MiFIR published on 19 December 2014.|
|STOXX Ltd. Expands Smart-Beta Offering With STOXX Sharpe Ratio Index Family - STOXX Europe Sharpe Ratio 50 Index Licensed To JP Morgan|
|February 18, 2015--STOXX Limited, a leading provider of innovative, tradable and global index concepts, today released a first-of-its-kind index family that selects components based on their Sharpe ratios.|
|Q & A on the Green Paper on building a Capital Markets Union|
|February 18, 2015--General Questions|
What does the term 'Capital Markets Union' mean?
The free movement of capital is a long-standing objective of the European Union-a fundamental freedom which should be at the heart of the single market.
|Ossiam launches Shiller Barclays CAPE Sector Value Europe ETF|
|February 17, 2015--Ossiam, a leading provider of smart beta investment solutions, has teamed up with Barclays to launch the Ossiam Shiller Barclays CAPE Europe Sector Value TR UCITS ETF 1C (EUR).|
|SocGen buys stake in trading platform|
|February 17, 2015--Société Générale has bought a minority stake in a UK start-up trading platform in a move that underlines how banks are exploring hybrid fixed income derivatives to ease their capital requirements.|
|Source increases number of managing directors to nine|
|February 16, 2015--Source is pleased to announce that Kevin Gant, James King and Stephen Crowe have been promoted to the position of Managing Director.|
|UBS Global Asset Management lists new ETF on the London Stock Exchange (LSE)|
|February 16, 2015-- UBS Global Asset Management has today listed a new ETF on the LSE. The UBS ETF (LU) MSCI EMU hedged USD UCITS ETF (USD) A-dis offers investors the opportunity to invest in equities from Eurozone countries with US dollar currency hedging.|
|New Ossiam Smart Beta ETF launched on Xetra|
|ETF tracks performance of undervalued European sectors|
February 16, 2015--A new equity index fund issued by Ossiam has been tradeable in Deutsche Börse's XTF segment on Xetra since Monday.
ETF name: Ossiam Shiller Barclays Cape Europe Sector Value TR- UCITS ETF
Asset class: equity index ETF
|Market Vectors Global Junior Gold Miners Index Licensed to ProShares|
|Index to underlie inverse and leveraged ETFs listed on NYSE Arca|
February 13, 2015--Market Vectors Index Solutions GmbH (MVIS) today announced the licensing of the Market Vectors Global Junior Gold Miners Index (MVGDXJ) to ProShares, one of the top ten providers of exchange-traded products (ETPs) in the United Sates.
|Xetra Dax energised by GDP rebound|
|February 13, 2014--Industrial and financial stocks led a resurgent Xetra Dax on Friday after stronger than expected German growth data energised Frankfurt's main equities index.|
|FTSE, Legal & General launch index series to benchmark annuity rates|
|February 12, 2015--Index provider FTSE and the fund arm of British insurer Legal & General on Thursday launched an index series to benchmark annuity prices.|
|New UBS ETF launched on Xetra|
|ETF offers first-time access to euro zone equities with currency hedging against US dollar|
February 12, 2015--A new exchange-listed equity index fund issued by UBS AG has been tradable in Deutsche Börse's XTF segment on Xetra since Thursday:
ETF name: UBS ETF-MSCI EMU Hedged USD UCITS ETF (USD) A-dis
Asset class: equity index ETF
|Euro area securities issues statistics|
|February 11, 2015--The annual rate of change of the outstanding amount of debt securities issued by euro area residents was -0.5% in December 2014, compared with -0.9% in November.|
|Deutsche Börse presents policy paper on a European Capital Markets Union|
|February 11, 2015--Deutsche Börse presents policy paper on a European Capital Markets Unionrse Group supports efforts to create a Capital Markets Union as proposed by the President of the European Commission Jean-Claude Juncker.|
|UK lawmakers, watchdog spar over rate swaps compensation|
|February 10, 2015--A scheme for compensating companies mis-sold complex products by banks to shield against interest rate hikes is skewed in favour of the lenders, British lawmakers said on Tuesday.|
|Boost's short and leveraged ETP platform is the most liquid in Europe for trading oil and natural gas|
|February 10, 2015--Boost proved to be the S&L platform of choice for trading oil and natural gas
With the price of oil hitting $44/bl, Boost’s S&L oil ETPs traded nearly $500m in notional volume in January, 20% more than any other issuers' S&L ETPs
|European ETFs post another record month|
|February 9, 2015--European ETF/ETP industry gathers $14.9bn in net new assets in January, smashing the previous record of $10.8bn set in July 2014|
|ETFs/ETPs listed in Europe gathered a record level of US$14.9 billion in net new assets in January 2015, according to ETFGI|
|February 9, 2015--ETFGI's new research finds the ETF/ETP industry in Europe gathered US$14.9 Bn in net new assets which is the largest amount of monthly net inflows gathered in a month, surpassing the prior record of US10.8 Bn in net inflows set in July 2014.|
|London Stock Exchange February 2015 ETF & ETP Monthly Report|
|February 9, 2015--News
London Stock Exchange is introducing two new order types, Cross Orders and Block Trade Facility for ETFs and ETPs. The order types facilitate large size trades with the benefits of orderbook price validation for best execution, automated trade reporting and clearing. For more information please see the Service Announcement
|Amundi launches S&P500 Buyback ETF|
|First ETF in Europe tracking S&P500 Buyback index will be aimed at smart beta investors
February 9, 2015--Amundi ETF has launched the first ETF in Europe tracking the S&P 500 Buyback Index.
|Northern Trust Monthly Funds Market Review: Explosive growth for smart beta in Europe|
|February 6, 2015--The latest Monthly Funds Market Review from Northern Trust is now available for download.
This month's highlights include:
Explosive growth for smart beta in Europe
ETF assets will double to US$5tn by 2020, study claims
|Winter Economic Forecast: outlook improved but risks remain|
|February 5, 2015--For the first time since 2007, the economies of all European Union Member States are expected to grow again this year, according to the European Commission's winter forecast.|
|Two new iShares ETFs launched on Xetra|
|ETFs offer access to euro-zone corporate bonds with a BBB-BB rating and stock corporations with buyback programme "Buyback Achievers"
February 5, 2015--Tnew iShares ETFs from BlackRock's product offering have been tradable in Deutsche Börse's XTF segment on Xetra since Thursday.
|EU states in preliminary deal on regulating market benchmarks-diplomats|
|February 4, 2015--A wider than anticipated range of market benchmarks will come under the European Union's regulatory net if a deal brokered among member states on Wednesday wins final approval, EU diplomats said.|
|ESMA's technical advice on possible delegated acts concerning the Market Abuse Regulation|
|February 3, 2015--This advice:
specifies the MAR market manipulation indicators, by providing examples of practices that may constitute market manipulation as well as proposing "additional" indicators of market manipulation;
|Pension funds should benefit from a further two year exemption from central clearing requirements|
|February 3, 2015--The European Commission has today published a report that recommends granting pension funds a two-year exemption from central clearing requirements for their over-the-counter (OTC) derivative transactions.|
|Irish ETFs set to exceed $500bn by 2020|
|Ireland already hosts some $250bn in exchange traded funds; growth will come from international investor demand|
February 3, 2015--Irish domiciled exchange-traded funds are set to double to $500 billion by 2020, as new investors seek to integrate them into their portfolios and fund sponsors continue to introduce more products.
|Lyxor introduces Euro-hedged JPX-Nikkei 400 ETF|
|February 3, 2015--Lyxor, Europe's third largest provider of exchange-traded funds, has announced the launch of the Lyxor UCITS ETF JPX-Nikkei 400 Daily Hedged C-EUR.|
|Quality Equities for Europe in 2015|
|February 3, 2015--WisdomTree, an exchange-traded fund ("ETF") and exchange-traded product ("ETP") sponsor, and pioneer of dividend-weighted smart beta ETFs, today announced its outlook for 2015.|
|Fund managers await clarity on cost disclosure rules|
|February 3, 2015--European rules requiring greater disclosure of portfolio costs could apply to fund managers sooner than expected if regulators decide to clear up inconsistencies in existing sets of proposals.|
|SSgA in smart beta ETF push|
|February 3, 2015--State Street Global Advisors has expanded its range of smart beta exchange traded funds with the registration of four value-weighted ETFs in Ireland.|
|Turnover in the region of EUR 9.7 billion recorded by Boerse Stuttgart in January|
|2015 kicks off with a significant increase in trading activity -All asset classes post strong gains-Record month for equities and ETP trading
February 3, 2015--According to the order book statistics, turnover at Boerse Stuttgart for January 2015 amounted to EUR 9.7 billion.
|Assets held in UK tracker funds rocket by 23.5%|
|February 2, 2015--While the figures, especially at the higher-cost end, are likely to have been skewed by the advent of the RDR and the banning of commission, the huge inflows into equity funds with an OCF of less than 0.49 per cent showed a clear shift towards passive investing.|
|Guggenheim Securities International Commences Operations|
|February 2, 2015--Guggenheim Securities International Ltd, the international investment banking and capital markets division of Guggenheim Partners, today announced it has commenced operations, providing sales and trading services for European clients.|
|Turnover at Deutsche Börse AG's cash markets at 148.5 billion euros in January|
|February 2, 2015--Order book turnover on Xetra, the Frankfurt Stock Exchange and Tradegate across all asset classes stood at €148.5 billion in January (January 2014: €124.9 billion).|
|Assets held in UK tracker funds rocket by 23.5%|
|February 2, 2015--February 2, 2015--UK investors are increasingly turning to low-cost investment options, prompting an increase in demand for passive funds, a spate of recent reports has found.|
|Oslo Børs launches new bond indices|
|February 2, 2015--As from today Oslo Børs is calculating 20 new bond indices. With that the bond index portfolio is expanded from five to 25 indices.|