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US investors pile into exchange-traded funds
May 18, 2011--US investors are piling into exchange-traded stock funds, even as they become more bearish and pull back from actively managed funds.
Investors pumped a net $14.2bn into equity ETFs by the middle of the second quarter, nearly double the pace of investment in the first quarter, when net inflows for the entire period were $12.9bn, according to data from brokerage ConvergEx Group
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Source: FT.com
Economic Survey of Mexico 2011
May 17, 2011--Following a deep recession associated with a strong global downturn, Mexico is experiencing a robust recovery, with GDP growth of 5½ per cent in 2010 and 4 ½ per cent in 2011. Export growth is expected to slow after the exceptional rebound of 2010, but stronger domestic demand should keep the recovery on track.
Several labour market indicators have improved, although unemployment is decreasing only slowly. Mexico has already started to withdraw the fiscal stimulus of 2009 and increased taxes to calm market worries about fiscal trends. If the recovery unfolds as expected, the government should fully implement its plans to lower the budget deficit further through spending restraint. Since inflation has come down, monetary policy can support the recovery by keeping rates low in the near term.
Mexico was able to implement countercyclical policies in the recession thanks to significant reforms of the macroeconomic policy framework. However, it should continue to strengthen its policy framework to better withstand shocks. Amending the fiscal rule to accumulate more financial assets during periods of high oil prices and economic growth would give the government additional room to support the economy when confronting large shocks. Taking measures to lower price stickiness related to administrative tariffs and uncompetitive markets would give monetary policy more room for manoeuvre and, most importantly, would contribute to a better allocation of resources. Enhancing competition and lowering market entry barriers would also promote the development of more stable consumer-related services, attenuating the effects of shocks.
OECD Economic Surveys-MEXICO-MAY 2011 OVERVIEW Horizons launches enhanced income ETF for financial stocks HEF will invest primarily in a portfolio of equity and equity-related securities of Canadian companies that are primarily exposed to Canadian banking, finance and financial services sectors and are amongst the largest and most liquid issuers listed on the TSX in that sector. To mitigate downside risk and generate income, HEF will generally write slightly out-of-the-money covered call options on 100% of the portfolio securities. The level of covered call option writing may vary based on market volatility and other factors. read more Lawmakers warning on derivatives rules read more PowerShares files with the SEC BofA Merrill Lynch Fund Manager Survey Shows Investors Less Confident on Global Growth and Profit Outlook
With prospects for growth more challenging and inflation fears receding, asset allocators have postponed their expectations of a rise in U.S. interest rates. In the April survey, 69 percent of participants anticipated the Federal Reserve first hiking rates by the end of this year; now 73 percent sees this occurring in 2012. Against this accommodating background, risk appetite has fallen only modestly. Fund managers trimmed exposure to equities and commodities, while adding to cash and bond holdings slightly. Risk aversion is more evident in strong sector rotation into more defensive areas, such as consumer staples and pharmaceuticals, and out of more volatile and growth-dependent sectors, such as energy and materials. read more CFTC’s Agricultural Advisory Committee to Meet May 19, 2011 read more iShares files with the SEC- iShares Global Inflation-Linked Bond Fund iShares files with the SEC ETFS Silver Trust (SIVR) Experiences Record Trading Volumes on NYSE ARCA SIVR began trading on the NYSE ARCA on July 24th, 2009 and has since firmly established itself in the physically backed product landscape offering exposure to silver at the lowest management fees (30bps) of any physically backed silver ETF in the US market. read more
Source: OECD
May 17, 2011--Horizons Exchange Traded Funds Inc. ("Horizons ETFs") and its affiliate AlphaPro Management Inc. (the "Manager"), are pleased to announce the launch of the Horizons AlphaPro Enhanced Income Financials ETF ("HEF"), which offers Canadian investors access to an innovative covered call strategy on Canada's largest financial sector stocks. The ETF will begin trading today on the Toronto Stock Exchange ("TSX") under the ticker symbol HEF.
The investment objective of HEF is to provide its unitholders with: (a) exposure to the performance of an equally weighted portfolio of Canadian banking, finance and financial services companies; and (b) monthly distributions of dividend and call option income.
Source: CNW
May 17, 2011--New York lawmakers led by Charles Schumer are warning the Federal Reserve and other regulators that they risk flouting the US Congress with new derivatives rules that impose "significant competitive disadvantages" on US banks.
In a letter to Ben Bernanke, Fed chairman, and other regulatory heads, the members of Congress say that US banks will be unfairly hurt if their foreign subsidiaries are forced to demand collateral from non-US customers.
Source: FT.com
May 17, 2011--PowerShares has filed a post-effective amendment, registration statement with the SEC for the PowerShares Fundamental Investment Grade Corporate Bond Portfolio (NYSE Arca, Inc. – PFIG).
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Source:
Debt Crisis Seen as Damaging Prospects for Eurozone
May 17, 2011--Investors' confidence in the outlook for global growth and corporate profits has dipped, according to the BofA Merrill Lynch Survey of Fund Managers for May.
The proportion of the panel believing that the world economy will strengthen in the next 12 months has fallen to a net 10 percent, down from a net 27 percent in April and a net 58 percent as recently as February. Similarly, only a net 9 percent of respondents now look for corporate profits to improve in the coming year.
Participants' lower conviction is most evident in Europe, where expectations turned negative in May with a net 8 percent expecting the region's economy to weaken in the next year. Just two months ago, a net 32 percent forecast that it would strengthen. This reflects investors' identification of the eurozone sovereign debt crisis as the largest tail risk globally (up to 36 percent, from 21 percent in April).
Source: Bank of America Merrill Lynch
May 16, 2011--Committee to discuss issues concerning the Dodd-Frank Act including proposed rules on position limits, hedge exemptions, the swap dealer definition, the end user exception and margin requirements for uncleared swaps.
The Commodity Futures Trading Commission (CFTC) will convene a meeting of its Agricultural Advisory Committee (AAC) on Thursday, May 19, 2011, to obtain the views of agricultural futures market experts, national farm organizations, major commodity and agribusiness groups and the farm banking community. The major topics for discussion will be issues related to the Dodd-Frank Act, including position limits, hedge exemptions, the swap dealer definition, the end user exception and margin requirements for uncleared swaps. The AAC also will receive a presentation on recent activities in the major agricultural markets.
Source: CFTC.gov
May 16, 2011--iShares has filed a post-registration statement, registratopn statement with the SEC for the iShares Global Inflation-Linked Bond Fund.
view filing
Source: SEC.gov
May 16, 2011--iShares has filed a post-effective amendment, registration statement with the SEC for the iShares International Inflation-Linked Bond Fund.
view filing
Source: SEC.gov
May 16, 2011--ETFS Silver Trust (SIVR) experienced a record 5.25 million shares traded on May 5th, 2011
Average Daily Volume increased 18.5x from $8m to $148m as of May 6th, 2011
Lowest expense ratio in physically backed silver Exchange Traded Product (ETP) market at 30 basis points (bps)1 may be contributing to investor interest
ETF Securities USA LLC (ETFS) announced today that volume of shares traded in the ETFS Silver Trust (SIVR) exceeded a record for week of May 2nd, 2011. Shares reached a record 5.25 million traded on May 5th, 2011 with value of $740 million traded for the whole week. Average daily volume in SIVR increased 18.5 times from $8m to $148m on the back of high volatility in the silver market.
Source: ETFS Marketing LLC
