Thomson Reuters-Monday Morning Memo: Review of the European ETF Market, May 2018-continued

June 18, 2018--The promoters of ETFs in Europe enjoyed net inflows for May, which in combination with a generally positive market environment, led to increasing assets under management in the European ETF industry (€663.7 bn, up from €651.9 bn at the end of April 2018).
The increase of €11.8 bn for May was driven by the performance of the underlying markets (+€10.3 bn), while net sales contributed €1.5 bn to the increase in assets under management in the European ETF segment.

With regard to the overall number of products, it was not surprising that equity funds (€475.9 bn) held the majority of the assets, followed by bond funds (€155.8 bn), commodity products (€21.0 bn), "other" funds (€6.6 bn), money market funds (€3.4 bn), mixed-asset funds (€0.7 bn), and alternative UCITS products (€0.4 bn).

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Source: Detlef Glow, Thomson Reuters


Europe ETP News
Swiss Stock Exchange Operator Plans to Launch Crypto Exchange
July 6, 2018--SIX, the firm that operates and owns the Swiss stock exchange, has announced plans to launch a fully regulated digital cryptocurrency exchange.
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Two new UBS ETFs on Xetra: multifactor strategies for equities from the EMU or industrialised countries worldwide
July 5, 2018--Two exchange traded funds (ETFs) issued by UBS Global Asset Management have been tradable on Xetra and Börse Frankfurt since Thursday.

The two equity ETFs enable investors to participate in the performance of companies selected on the basis of the six risk factors of momentum, value, quality, return, volatility and size.

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WisdomTree ETFs on Xetra: investment-grade euro bonds
July 5, 2018--Four new exchange traded funds issued by WisdomTree are tradable on Xetra and Börse Frankfurt as of Thursday.
The four new bond ETFs enable investors to participate in the performance of investment-grade fixed-income bonds denominated in euros.
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Solactive combines ESG, low volatility, and high dividend yield in new index concept
July 5, 2018-Solactive is pleased to announce the launch of the Climate and Energy Transition Index, an index tracking the performance of companies that show the best commitment to energy transition in their sectors while exhibiting low volatility and high dividend yield characteristics.
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Brexit prompts asset managers to revamp distribution strategies
July 4, 2018--Brexit prompts asset managers to revamp distribution strategies. New products likely to be launched in Luxembourg, Ireland and UK, says State Street
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Xetra-Gold has over 180 tons of gold in custody
July 4, 2018--Half-year report: Growth of six tonnes since the beginning of the year / Europe's largest gold security with physical deposit
The gold holdings of Xetra-Gold (ISIN: DE000A0S9GB0) amounted to 181.34 tonnes at the end of the first half. At the beginning of the year, they amounted to 175.04 tonnes.
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SocGen to buy Commerzbank's equity markets and commodities arm
July 3, 2018--The two banks did not disclose a price for the transaction.
Although Commerzbank said on Tuesday that its EMC division had 2017 gross revenues of 381 million euros ($443.18 million).
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HANetf Commentary: The Case for Non- Transparent Active ETFs |Part 2
July 3, 2018--Addressing the Purists
In the previous article, HANetf looked at the potential for Active ETFs in Europe. While some ETF issuers have launched active fixed income ETFs, the equivalent innovation in equities is being hampered by concerns about transparency.
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EBA assesses risks and opportunities from Fintech and its impact on incumbents business models
July 3, 2018--The European Banking Authority (EBA) published today the first products of its FinTech Roadmap, namely (i) a thematic report on the impact of FinTech on incumbent credit institutions' business models and (ii) a thematic report on the prudential risks and opportunities arising for institutions from FinTech.
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AMF-Closet Index Funds: a contribution to the debate in Europe
July 3, 2018--The possible existence of closet index funds, is an important matter for financial regulators, including the AMF, both in terms of financial information and investor protection. Today the AMF is keen to contribute to the European debate and analysed nearly 800 French funds using a method based on fund return and market data.
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Boerse Stuttgart records June turnover in region of EUR 5.9 billion
July 3, 2018--Securitised derivatives, ETPs and investment fund units all show increase in trading volume compared with May figures
Based on the order book statistics, turnover at Boerse Stuttgart in June 2018 stood at roughly EUR 5.9 billion.
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High number of IPOs and ETF listings in the first half of the year
July 3, 2018--In the first six months of the year, there have been significantly more IPOs and listings of new exchange-traded funds (ETFs) on the cash markets of Deutsche Börse than in previous years.
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Monday Morning Memo: Market Overview-Factor-Investing ETFs
July 2, 2018--(May 31, 2018)
Factor-investing ETFs (the so-called smart beta ETFs) have been seen for a few years as one of the main drivers of future growth in the European ETF market, since they are innovative products that suit the needs of many investors.
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DAX turns 30-Frankfurt celebrates
July 2, 2018--DAX, Deutsche Börse's most important selection index, officially celebrated its 30th birthday on Monday.
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ETFGI reports 44th consecutiv ETFGI PRESS RELEASE: ETFGI reports 44th consecutive month of net inflows into ETFs and ETPs listed in Europe with US$2.89 billion in net new assets during May 2018
July 2, 2018--ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported net inflows of US$2.89 billion into ETFs and ETPs listed in Europe during May 2018, marking the 44th consecutive month of net inflows into European-listed ETFs/ETPs. (All dollar values in USD unless otherwise noted.)
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The Spanish exchange traded 60.3 billion Euro in June
July 2, 2018--The Spanish Exchange traded €60.3 billion in Equities in June, down 8.6% from the preceding month. The number of trades in June reached 3.9 million, in line with May.
The number of Warrants and Certificates admitted to trading in June came in at 3,291, up 27% year on year.
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VanEck appoints European head
July 2, 2018--VanEck has appointed Martijn Rozemuller as European head to further expand its ETF business in the region.
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New Invesco ETF launched on Xetra: US dollar-denominated CoCo bonds from companies in industrialised countries
June 29, 2019--A new exchange traded fund issued by Invesco Asset Management is tradable on Xetra and Börse Frankfurt since Thursday.
The Invesco AT1 Capital Bond UCITS ETF EUR Hdg Dist enables investors to participate in the performance of contingent convertible bonds issued worldwide by banks from industrialised countries and denominated in US dollars.
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Flow Traders NV: BinckBank and Flow Traders complete sale of Think ETF Asset Management B.V.
June 29, 2018--BinckBank N.V. (60%), Flow Traders N.V (24%) and Think ETF's management (16%) together announce that, further to the press release on January 19th 2018, the sale of their stakes in Think ETF Asset Management B.V. to Van Eck Associates Corporation has been completed.
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Boerse Stuttgart offers bond settlement in foreign currencies
June 28, 2018--7,000 debt securities (bonds) in 20 different foreign currencies already tradeable without need for conversion into euros
New FXplus technical platform
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S&P Dow Jones Indices-Index Dashboard:Europe
June 28, 2018--Summary
As trade tensions soured sentiment across global equity markets, the S&P Europe 350 fell 0.57% this month. However, gains earlier in the quarter-particularly from the U.K.-meant the European equity benchmark posted a 4.42% quarterly total return.
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IMF-Ireland: Selected Issues
June 28, 2018--BUSINESS CYCLE IN IRELAND: ACCOUNTING FOR OPEN LABOR MARKET AND MULTINATIONALS1
Assessing the business cycle in Ireland is complicated by the open character of its labor market and large presence of globally active multinationals. This chapter takes into account these features of the Irish economy when estimating potential output and the cyclical position.
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Two new active ETFs issued by Franklin Templeton on Xetra: Investment grade bonds in euros or US dollars
June 26, 2018--Two active ETFs issued by Franklin Templeton are tradable on Xetra and Börse Frankfurt as of Tuesday.
The Franklin Liberty Euro Short Maturity UCITS ETF enables investors to participate in the performance of euro-denominated bonds with short maturities.
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New Xtrackers ETF on Xetra: 600 European companies with currency hedging
June 26, 2018--A new exchange traded fund issued by DWS is tradable on Xetra and Börse Frankfurt as of Tuesday.
This equity ETF allows investors to participate in the performance of the STOXX 600 Index, which comprises shares from 600 large, mid and small cap companies from western Europe.
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European Commission-Annual report on Trade and Investment Barriers
June 26, 2018--The Commission eliminated in 2017 the highest number ever of trade barriers faced by EU companies doing business abroad
The annual report on Trade and Investment Barriers, released today, shows that the European Commission has eliminated the highest number ever of trade barriers faced by EU companies doing business abroad. European exporters reported a major increase in protectionism in 2017.
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State Street Global Advisors appoints Marcus Miholic
June 25, 2018--State Street Global Advisors SPDR has appointed Marcus Miholich as head of capital markets for Europe, the Middle East, and Africa (EMEA), and Asia-Pacific (APAC).
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European Fund-Flow Trends: May 2018-A grim month for long-term mutual funds
June 25, 2018--European investors pulled back from long-term mutual funds as the market environment and the general sentiment turned negative. As a consequence, May was the first month posting net outflows from long-term mutual funds after 16 consecutive months showing net inflows.
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Invesco launches European bond ETF
June 25, 2018--Invesco has launched a fixed income ETF giving access to debt issued by European banks.
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ESMA clarifies CCPs' liquidity risk assessment under EMIR
June 22, 2018--The European Securities and Markets Authority (ESMA) has published today an opinion which sets out how central counterparties (CCPs) in the EU should consider in their internal risk models the liquidity risk posed by all entities towards which the CCP has a liquidity exposure, such as liquidity providers.
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People-Trading Places: Vanguard, Credit Suisse, Russell and more...
June 22, 2018--Comings and goings in the City and beyond in the week of June 18
Vanguard hires Italy head Asset manager Vanguard has appointed Simone Rosti as head of Italy.
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IMF Euro Area: Staff Concluding Statement of the 2018 Article IV Mission
June 21, 2018--The euro area expansion, while still vigorous, is slowing to a more moderate pace. But global and domestic risks are rising, including escalating trade tensions, policy complacency among member states, and political shocks. Rebuilding fiscal buffers and addressing structural issues to improve resilience and build support for euro area reforms is now even more urgent.
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New ETN issuer Societe Generale: Shares with bottom-up approach, market leadership or a focus on ageing population
June 21, 2018--The exchange traded notes issued by Société Générale have been tradable on Xetra and Börse Frankfurt for the first time. The product range comprises three ETNs to start with.
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First Trust Global launches internet ETF
June 21, 2018--TER of 0.55%
First Trust Global Portfolios has launched an internet ETF, providing investors with exposure to a basket of 40 internet-related stocks.
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Official Statistics: Forecasts for the UK economy: June 2018
June 20, 2018--Forecasts for the UK economy is a monthly comparison of independent forecasts.
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Millions at financial risk over Brexit contract issue, warns TheCityUK
June 20, 2018--The personal finances of tens of millions of people are at risk because of the failure to secure cross-border contracts after Brexit, a new report has warned.
Some 36m people, and the financial stability of the UK and EEA region, are facing a "looming crisis" if the UK and EU fail to agree a solution in the next few months.
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Franklin Templeton passive build-out continues with two bond ETFs
June 20, 2018--Franklin Templeton Investments has bolstered its ETF range with the launch of two actively-managed fixed income ETFs.
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HANetf Commentary: The Case for Non-Transparent Active ETFs-Part 1 ACTIVE ETFs in EUROPE
June 20, 2018--Active ETFs in Europe
Growth in the ETF industry is sustained, long-term and global-at the time of writing, there have been 51 months of consecutive net inflows to the industry. 1 This expansion is being sustained by both internal innovation and external mega-trends.
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HANetf adds to top tier service providers, selecting EY as Auditor
June 20, 2018--Europe's first independent 'white label' UCITS ETF platform provides asset managers with the regulatory and operational infrastructure to build and launch ETFs into Europe without establishing their own full-service business
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EDHEC-Risk Institute Newsletter-June Issue
June 19, 2018--FEATURE
Applying Goal-Based Investing Principles to the Retirement Problem
A major global pension crisis is threatening the two main pillars of pension systems, due to a combination of increasing demographic imbalances and decreasing economic productivity growth.
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Invesco unveils first Saudi Arabia-focused ETF in Europe
June 18, 2018--Invesco has launched Europe's first Saudi Arabia ETF, the company has announced.
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Secret ETF Trades Revealed by MiFID Point to Market 70% Larger
June 18, 2018--Off-exchange venues traded more ETFs than exchanges did in May
Even more ETF trades remain hidden in systematic internalizers
The value of European exchange-traded funds that are changing hands is more than 70 percent greater than previously reported, one indication of the transparency that MiFID II is bringing to the opaque world of off-exchange trading.
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Solactive strengthens ties with LGIM launching a new suite of equity and fixed-income ESG indices
June 18, 2018--Solactive has released the Solactive L&G ESG Index Family targeted at investors who wish to go further in integrating ESG factors into their investment strategy.
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Thomson Reuters-Monday Morning Memo: Review of the European ETF Market, May 2018
June 18, 2018--The promoters of ETFs in Europe enjoyed net inflows for May, which in combination with a generally positive market environment, led to increasing assets under management in the European ETF industry (€663.7 bn, up from €651.9 bn at the end of April 2018).
read more
Britain's FCA to probe impact of EU asset management rules
June 18, 2018--Britain's regulator will launch an investigation into the impact of new European Union rules on the asset management industry after concerns were raised about how they affect the pricing of investment research and other issues.
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Europe's First Smart Beta China A-Shares ETF Launches
June 18, 2018--China Post Global announced today the launch of the Market Access STOXX(R) China A Minimum Variance Index UCITS ETF (ISIN LU1750178011). The new ETF implements a minimum variance approach to China's onshore stock market and is the first smart beta ETF on China to launch in Europe.
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IMF Staff Country Reports Switzerland : Selected Issues
June 18, 2018--TAXATION OF CORPORATIONS IN SWITZERLAND1
A. Introduction
1. The Swiss government is proposing a major tax reform, primarily of the corporate income tax (CIT). On March 21, 2018, the Swiss Federal Council made a proposal to reform the CIT (known as 'Tax Proposal 17'), after the rejection of a previous reform plan ('Corporate Tax Reform III') in a popular vote in February 2017.
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