|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|
|MAR guidelines on commodity derivatives now available in all EU languages|
|January 17, 2017--The European Securities and Markets Authority (ESMA) has issued today the official translations of its final guidelines on commodity derivatives under the Market Abuse Regulation (MAR).|
|LSE dismisses report on moving clearing to Germany|
|January 16, 2017--UK exchange operator hits out at study commissioned by merger partner Deutsche Börse.|
|ESMA issues briefing on transaction reporting requirements under MiFID II|
|January 16, 2017--Toward the end of 2016, ESMA published guidelines for transaction reporting under the Markets in Financial Instruments Directive (MiFID II) and Regulation(MiFIR).|
|Monday Morning Memo: Review of the European ETF Market, December 2016|
|January 16, 2017--The promoters of exchange-traded funds (ETFs) enjoyed net inflows for December. Positive market impacts in combination with net inflows led to increased assets under management in the European ETF industry (€514.5 bn) for December, up from €495.8 bn at the end of November.|
|Source launches low-cost commodity ETF|
|January 16, 2017--Source is seeking to cater for growing investor appetite for commodities with the launch of a low-cost ETF.|
|ESMA calls for MiFIR to apply to wider range of firms|
|January 13, 2017--ESMA says there could be consequences to excluding certain fund management companies from the scope of MiFIR powers.|
|EBA updated Risk Dashboard shows that elevated NPLs and a high cost base pose a significant profitability challenge for EU banks|
|January 13, 2017--The European Banking Authority (EBA) published today a periodical update of its Risk Dashboard summarising the main risks and vulnerabilities in the EU banking sector by a set of Risk Indicators in Q3 2016.|
|GF International Asset Management Launches First ETF On London Stock Exchange|
|January 12. 2017--First ETF to track the FTSE Global China A Inclusion Index Series|
First ETF from a Chinese asset management firm based in Europe
Growing number of Chinese issuers choosing to list ETFs in London.
|Global Node for A Standardized Blockchain-Based Digital Currency is Formally Established in the UK|
|January 12, 2017--An agreement on the establishment in the UK of a global node for a standardized digital currency based on blockchain technology was formally signed at Central Hall Westminster on January 9.|
|ESMA calls for consistent application of MiFIR product intervention powers|
|January 12, 2017--The European Securities and Markets Authority (ESMA) has issued today an Opinion regarding the scope of the product intervention powers under the Markets in Financial Instruments Regulation (MiFIR).|
|Greater Productivity, Investment in People Can Put Russia Back on Path to Sustainable and Inclusive Growth|
|January 12, 2017--Increased productivity and greater investment in human capital and services are essential to achieving sustainable and inclusive economic growth to benefit all of Russia's citizens, says the World Bank Group's Systematic Country Diagnostic for the Russian Federation, "Pathways to Inclusive Growth" launched today at the 2017 Gaidar Forum|
|Euro area securities issues statistics|
|January 11, 2017--Euro Area Securities Issues Statistics: November 2016
The annual rate of change of the outstanding amount of debt securities issued by euro area residents was -0.1% in November 2016, compared with -0.3% in October.
|Britain's finance industry drops demands for passporting after Brexit|
|January 11, 2017--Britain's finance industry has given up on efforts to keep full access to the European Union after Brexit and is pushing instead for a more limited trade deal that would potentially exclude some financial products.|
|ESMA finds improvement in regulators' supervision of MiFID best execution requirements|
|January 11, 2017--The European Securities and Markets Authority (ESMA) finds that national regulators are giving greater attention to best execution requirements under the Markets in Financial Instruments Directive (MiFID) in the follow-up report to its Peer Review published in 2015.|
|Blockchain could streamline regulatory reporting, EU lawmaker says|
|January 11, 2017--Securities firms should be allowed to experiment with using blockchain technology to cut the cost of their regulatory reporting, a European Parliament leader said, pressing EU authorities to promote financial technology.|
|Brexit adds to caution on LSE, Deutsche Boerse merger: Draghi|
|January 11, 2017--The European Central Bank needs to carefully analyze a proposed merger between London Stock Exchange Group (LSE.L) and Deutsche Boerse (DB1Gn.DE), particularly given Britain's decision to leave the EU, ECB President Mario Draghi said on Wednesday|
|Turkish lira plumbs record lows against the dollar on economic and political fears|
|January 10, 2017--Turkey,s currency, the lira, hit an all-time low of 3.7790 against the U.S. dollar in early trade on Tuesday, breaking previous record lows plumbed during Monday's session.|
|WisdomTree creates European compliance chief role|
|January 9, 2017--Former Aberdeen Asset Management consultant on Mifid II joins $39bn ETF provider.|
|ETF on UBS inflation-protected US government bonds launched on Xetra|
|January 9, 2017--ETF tracks US Treasury Inflation-Protected Securities (TIPS) with a minimum term of 10 years|
A new UBS Global Asset Management bond index ETF has been tradable via Xetra and Börse Frankfurt since Tuesday.
|Unscheduled adjustment in SDAX|
|January 9, 2017--On Monday, Deutsche Börse announced an unscheduled change to SDAX.|
|Tradeweb European Exchange-Traded Funds Update-December 2016|
|January 9, 2017--The following data is derived from trading activity on the Tradeweb European-listed ETF platform.|
|BMO adds emerging markets to ETFs range|
|January 9, 2017--BMO Global Asset Management has expanded its "Income Leaders' suite of ETFs for UK investors with the launch of the new BMO MSCI Emerging Markets Income Leaders Ucits ETF.|
|Lyxor-ETF Barometer-December 2016|
|January 6, 2017--European ETF Market flows continued to recover in December 2016. Net New Assets (NNA) during this month amounted to EUR4.7bn, the highest level since September 2016.|
|National Statistics: UK official holdings of international reserves: December 2016|
|January 5, 2017--This monthly release shows details of movements in the UK's official holdings of international reserves, or assets.|
|Eurex Monthly Report: Innovative products help manage volatility through 2016|
|January 4, 2017--In 2016, Eurex, Europe's largest derivatives exchange, saw increasing demand for its highly liquid benchmark product range as well as strong growth in a number of new product segments.|
|Boerse Stuttgart generates 2016 turnover of over EUR 80.1 billion|
|January 3, 2017--Brisk trading in equities and exchange-traded products |
Boerse Stuttgart remains market leader for securitised derivatives and for corporate bonds in Germany
|RECOMMENDED ALL-SHARE MERGER BETWEEN DEUTSCHE BORSE AG AND LONDON STOCK EXCHANGE GROUP PLC|
|January 3, 2017--Option to sell LCH.Clearnet SA to Euronext N.V.
Further to the announcement by Deutsche Börse AG ("DBAG") of 28 September 2016 that the London Stock Exchange Group plc ("LSEG") and LCH.Clearnet Group Limited ("LCH Group") are exploring the sale of LCH.Clearnet SA in order to address proactively anti-trust concerns raised by the European Commission in relation to certain businesses
|Two STOXX Regional Industry Neutral ESG Indices licensed to Stichting Algemeen Pensioenfonds Unilever Nederland-Kring 'Progress'|
|January 3, 2017--STOXX Ltd., the operator of Deutsche Böoerse Group's index business, and a global provider of innovative and tradable index concepts, today announced that the newly launched STOXX Europe Industry Neutral ESG and STOXX North America Industry Neutral ESG 150 indices have been licensed to Stichting Algemeen Pensioenfonds Unilever Nederland-Kring 'Progress'('Progress') to be used as benchmarks.|
|The Spanish Stock Exchange traded euro652.9 billion in 2016|
|January 2, 2017--The trading volume in December reached €48.9billion
The ETF trading volume in 2016 totalled €6 billion
|Cash markets achieve third strongest year since 2010|
|January 2, 2017--Turnover on Xetra, Börse Frankfurt and Tradegate Exchange totals €1.38 trillion|
Daimler AG is equity with the highest order book turnover 2016 with €69.5 billion
|Passive investment gains trounce active pains in Europe|
|December 22, 2016--European passive funds look set to register higher inflows than their active equivalents for the first year on record.|
|ETFGI reports assets invested in ETFs/ETPs listed in Europe were 556 billion US dollars at the end of November 2016|
|December 22, 2016--ETFGI, the leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, today reported assets invested in ETFs/ETPs listed in Europe were US$556 billion down from the record high US$567 Bn reached at the end of Q3 2016.|
|Official Statistics: Forecasts for the UK economy: December 2016|
|December 21, 2016--Forecasts for the UK economy is a monthly comparison of independent forecasts.|
|ESMA publishes updated MAR Q&A|
|December 20, 2016--The European Securities and Markets Authority (ESMA) has issued today a Questions & Answers (Q&A) document regarding the implementation of the Market Abuse Regulation (MAR).|
|ESMA updates MiFID II Q&A on Investor Protection|
|December 19, 2016--The European Securities and Markets Authority (ESMA) has added new Q&As to its Questions and Answers (Q&A) document on the implementation of investor protection topics under the Market in Financial Instruments Directive and Regulation (MiFID II/ MiFIR).|
|BlackRock launches Swedish equity ETF|
|December 19, 2016--BlackRock has launched an ETF to cover the Swedish domestic equity market.|
The iShares OMX Stockholm Capped Ucits ETF, which will cost 0.10 per cent in fees, will track the OMX Stockholm Benchmark Cap index.
|World-first listing on CISE for global bitcoin fund|
|December 19, 2016--Global Advisors Investment Fund plc (GABI) has today been admitted to the Official List of the Channel Islands Securities Exchange (CISE) to become the first regulated bitcoin fund to be listed on any exchange globally.|
|First iShares ETF with access to Swedish stock market launched on Xetra|
|December 19, 2016--A new iShares equity index ETF has been tradable via Xetra since Monday.|
Name: iShares OMX Stockholm Capped UCITS ETF
Asset class: equity index ETF
Total expense ratio: 0.1 percent
Distribution policy: accumulating
Benchmark: OMX Stockholm Benchmark Cap Index
|Monthly report November 2016-Survey: Wealth managers concentrate on asset protection|
|December 19, 2016--Survey shows focus on rising costs and regulatory challenges
Market structure providers offer vital support to wealth managers
|New methodologies for Moscow Exchange's indices to come in force|
|December 19, 2016--On 19 December 2016, the following calculation methodologies came in force following Moscow Exchange's corporate restructuring whereby a 100%-owned subsidiary CJSC MICEX Stock Exchange had been consolidated into Moscow Exchange:|