|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|
|ESMA publishes results of EU central counterparties stress test|
|April 29, 2016--The European Securities and Markets Authority (ESMA) has published today the results of its first EU-wide stress test exercise regarding Central Counterparties (CCPs).|
|Euro area economic and financial developments by institutional|
|April 28, 2016--"Who-to-whom" data for securities, showing, for example, how much corporate or sovereign debt private households own, are being published for the first time.|
|Euronext Expands ETF Activity to London|
|April 28, 2016--Euronext has extended its range of ETF listing and trading venues to London, enabling ETF issuers to access the UK investor base alongside its existing Eurozone trading and distribution network.|
|Deutsche Boerse AG posts further revenue and profit growth in Q1/2016|
|April 27, 2016--Consolidated net revenue rises 8 per cent-Costs remain stable (excluding non-recurring and consolidation effects)-Adjusted EBIT up 9 per cent, to around €350 million-Profit forecasts for 2016 affirmed.|
|ComStage Vermogensstrategie UCITS ETF launched on Xetra|
|April 27, 2016--ETF offers access to a broadly diversified portfolio of different asset classes for long-term asset generation|
|Deutsche Boerse Takes Aim at Local Opposition to London Merger|
|April 27, 2016--German CEO sees LSE deal linking Frankfurt to tech, funding|
London headquarters among reasons for negative views locally
|SIX Swiss Exchange-ETF Quarterly Statistics: 1st quarter 2016|
|This report provides detailed figures regarding the performance of SIX Swiss Exchange's ETF segment.
April 26, 2016--In the first quarter of 2016, SIX Swiss Exchange recorded an ETF trading turnover of CHF 25.3 billion, which equates to an increase of 5.6 billion relative to the previous quarter.
|Source hires Nomura's Johnson to broaden European footprint|
|April 26, 2016--Reporting to recently appointed CEO Julian Ide, Johnson will be based in London in his new role.|
|Bank of New York Mellon in talks over DBV-X deal|
|April 26, 2016--US bank plans to move into repo trading by taking over start-up trading venue from Tradition|
|Monday Morning Memo: Review of the European ETF Market, March 2016|
|April 24, 2016--Detlef Glow, Thomson Reuters Lipper's head of EMEA research, reviews the fund flows in the European ETF market during March 2016.|
|Asset managers discount fees for big investors by a third|
|April 24, 2016--Regulation and competition among fund houses are making it harder to win and retain business|
|Forecasts for the UK economy: April 2016|
|April 21, 2016--Forecasts for the UK economy is a monthly comparison of independent forecasts.|
|UK gives the thumbs-up to robo-advice|
|April 21, 2016--Robo-advisers were given a thumbs-up by UK regulator the Financial Conduct Authority in March 2016, opening up a potentially large market for European ETF providers.|
|Unscheduled adjustments in MDAX|
|Adjustments to the free float and replacement of Wincor Nixdorf AG share class/Changes to be effective as of 21 April|
April 21, 2016--On Monday, Deutsche Börse announced unscheduled changes to MDAX.
|New db x-trackers ETFs on US Treasuries tradable on Xetra|
|ETFs provide access to US government bonds|
April 18, 2016--Two new db x-trackers ETFs from the Deutsche Asset & Wealth Management ETF product family have been tradable in Deutsche Börse's XTF segment since Monday.
Name: db x-trackers II IBOXX $
TREASURIES 1-3 UCITS ETF (DR)
|Deutsche Boerse improves efficiency of European ETF trading|
|Xetra Quote Request allows for optimized execution of large-sized ETF orders/Leading ETF issuers and market makers support the new service|
April 18, 2016--Deutsche Börse has launched a new service which allows for an optimized on-exchange execution of large-sized ETF orders, the Xetra Quote Request.
|FCA-Inducements and conflicts of interest thematic review: key findings|
|April 18, 2016--In January 2014 we issued Finalised Guidance 14/1: Supervising retail investment advice: inducements and conflicts of interest. This explained our concerns and why certain practices are likely to create conflicts of interest and result in firms not acting in their customers' best interests.|
|FCA-Occasional Paper No. 16: Are high-frequency traders anticipating the order flow? Cross-venue evidence from the UK market|
|April 15, 2016--High-frequency traders (HFTs) have received a mixed reaction from academics and practitioners with some people underlining their role as liquidity providers and others highlighting the problems that they could bring to the market.|
|New multi-factor Lyxor ETF launched on Xetra|
|April 14, 2016--ETF tracks Asia, Europe and North America taking five risk factors into account
A new exchange-listed index fund issued by Lyxor International Asset Management has been tradable on Xetra and Bürse Frankfurt since Thursday.
|New UniCredit ETF on convertible bonds launched on Xetra|
|April 13, 2016--A second ETF on European convertible bonds issued by Structured Invest S.A., a wholly-owned subsidiary of UniCredit Bank AG, is tradable on Xetra as of Wednesday.|
|Assets invested in ETFs/ETPs listed in Europe reach a new record high of 522 billion US dollars at the end of Q1 2016, according to ETFGI|
|April 12, 2016--Assets invested in ETFs/ETPs listed in Europe reach a new record high of US$522 billion US at the end of Q1 2016, according to preliminary data from ETFGI's March 2016 global ETF and ETP industry insights report. ETFs/ETPs listed in Europe gathered net inflows of US$5.11 Bn in March marking the 18th consecutive month of net inflows.|
|Source: New research reveals institutional investor dividend forecast|
|April 12, 2016--New research from Source, one of the largest providers of Exchange Traded Funds (ETFs) in Europe, reveals 61% of institutional investors anticipate that dividends from UK companies will stay the same or decline this year when compared to 2015.|
|ESMA Guidelines on ETFs and other UCITS issues|
|April 12, 2016--ESMA has published the Guidelines on ETFs and other UCITS issues compliance table.|
|ESMA publishes Opinion on EU framework for loan origination by investment funds|
|April 12, 2016--The European Securities and Markets Authority (ESMA) has today published an Opinion addressed to the European Parliament, the Council and the Commission on the components necessary for a common European framework which applies to loan origination by investment funds.|
|FCA clamps down on closet trackers|
|April 12, 2016--The UK financial watchdog, the Financial Conduct Authority (FCA), has clamped down on several 'closet tracker' funds, which closely follow benchmarks despite being marketed as actively managed.|
|db X-trackers bond index ETF on emerging market bonds launched on Xetra|
|Selection and weighting of emerging markets based on fundamental economic factors|
April 12, 2016--The db x-trackers iBoxx USD Emerging Sovereigns Quality Weighted UCITS ETF (DR) enables investors to participate in the performance of US dollar-denominated bonds issued by governments or central banks in emerging markets.
|Amundi ETF captures more than 40 per cent of European ETF inflows on Emerging Markets exposures in March 2016|
|April 11, 2016--Amundi ETF has attracted record inflows on Emerging Markets equities in March 2016, with 560 million EUR net inflows, representing 40 per cent of the total European ETF market flows on Emerging equity exposures in the period.|
|Deutsche Borse-LSE tie-up hits opposition|
|April 10, 2016--Mounting concern about the consequences for the merged entity if Britain votes to leave EU|
|Bitcoin app's U.K. launch opens door to free dollar-to-pound transfers|
|April 8, 2016--Barclays' backing of Circle is 'major milestone' in London's fintech, says U.K. Treasury.|
|Quarterly review: BlackRock tightens its grip on Europe|
|April 8, 2016--Squeeze on smaller managers as larger rivals gather most business|
|ESMA publishes new Q&A on CFDs and other speculative products|
|April 8, 2016--The European Securities and Markets Authority (ESMA) has published today a new question and answer document(Q&A) on the application of the Markets in Financial Instruments Directive (MiFID) to the marketing and sale of financial contracts for difference (CFDs) and other speculative products to retail clients (such as binary options and rolling spot forex).|
|Growth Recovery in South East Europe Underpinned by Investment, Says Latest World Bank Economic Report|
|April 8, 2016--The countries of South East Europe (SEE6) are projected to have grown at 2.1 percent on average in 2015. This growth is significantly higher than the 0.3 percent growth in 2014, when the region was severely impacted by record-breaking floods.|
|STOXX Launches Bond Version of EURO STOXX 50 Index|
|April 7, 2016--STOXX Ltd., the operator of Deutsche Böerse Group's index business, and a global provider of innovative and tradable index concepts, today introduced the EURO STOXX 50 Corporate Bond Index which is the only of its kind, tracking the corporate debt of the EURO STOXX 50 companies.|
|ESMA finds room for improvement in national supervision of investment advice to retail clients|
|April 7, 2016--The European Securities and Markets Authority (ESMA) has today published a peer review on how national regulators assess compliance with MiFID's suitability requirements when firms provide investment advice to retail clients.|
|ESAs finalise Key Information Documents for retail investors in the EU|
|April 7, 2016--The Joint Committee of the European Supervisory Authorities (EBA, EIOPA, ESMA-ESAs) has finalised its proposal for regulatory technical standards (RTS) on Key Information Documents (KIDs) for Packaged Retail and Insurance-based Investment Products (PRIIPs).|
|FCA-TR16/3: Meeting investors' expectations|
|April 7, 2016--We are reporting the findings of our thematic review that considered how firms ensure they manage funds and segregated mandates as they say they will. We also considered how firms monitor the appropriate distribution of their funds.|
|World Bank-Russia Economic Report 35: The Long Journey to Recovery|
|April 6, 2016--Russia's anticipated economic recovery has been delayed, and the country continues to adjust to an adverse external environment of lower oil prices and international sanctions.|
|Benchmarks: restoring confidence in the financial markets|
|April 6, 2016--Benchmarks are widely used to track market developments. As many financial transactions are linked to them, they can determine who benefits from investing in a particular financial product.|
|National Statistics: UK official holdings of international reserves: March 2016|
|April 6, 2016--This monthly release shows details of movements in the UK's official holdings of international reserves, or assets.|
|ESMA publishes Discussion Paper on UCITS share classes|
|April 6, 2016--The European Securities and Markets Authority (ESMA) has today published a discussion paper on UCITS share classes (the DP).|
|First smart beta ETF from NASDAQ AlphaDEX index family issued by First Trust on Xetra|
|April 6, 2016--The first equity index ETF from First Trust has been tradable via Xetra and Bürse Frankfurt since Wednesday. Smart beta ETFs enable European investors to participate in the performance of the NASDAQ AlphaDEX Germany Index with the aim of generating positive alpha compared to indices traditionally weighted by market capitalisation.|
|ESMA publishes updated AIFMD Q&A|
|April 5, 2016--The European Securities and Markets Authority (ESMA) has published an updated questions and answers document (Q&A) on the application of the Alternative Investment Fund Managers Directive (AIFMD).|
|ESMA publishes updated UCITS Q&A|
|April 5, 2016--The European Securities and Markets Authority (ESMA) has published an updated questions and answers document (Q&A) on the application of the Undertakings for the Collective Investment in Transferable Securities Directive (UCITS).|
|Global Exchange Market expands to include listing of investment funds|
|April 4, 2016--The Irish Stock Exchange (ISE) has expanded the Global Exchange Market (GEM) to include the listing of investment funds.|
|Boerse Stuttgart Reports March Turnover In Region Of EUR 6.9 Billion|
|April 4, 2016--Trading volume on a par with previous month//Figures show increased trading in equities and bonds|
|MiFID II-ESMA: no need to temporarily exclude ETDs from open access to trading venues and CCPs|
|April 4, 2016--The European Securities and Markets Authority (ESMA) sees no need to temporarily exclude exchange-traded derivatives (ETDs) from non-discriminatory access to central counterparties (CCPs) and trading venues, which will be introduced by the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR). MiFIR requires ESMA to assess whether ETDs should be exempted for a period of 30 months from the non-discriminatory access provisions.|