Global ETF News Older than One Year
Deutsche Bank-Synthetic Equity & Index Strategy-Global-The Flow Whisperer-TAARSS says prefer a mix of Bonds and Equities in Q2
April 6, 2015--Tactical Asset Allocation Relative Strength Signal (TAARSS) Monthly Update
Top recommendations for April: European, German, Japanese, and Indian equities, and US Intermediate IG Credit.
Market review
Risky assets were challenged again in March with Global equities (ACWI) and Commodities (DBC) retreating by 1.5% and 6.0%, respectively.
While US bonds (AGG) ended slightly positive at 0.4% as rising rates concerns eased.
TAARSS rotation strategy monthly performance review
Most quarterly and monthly TAARSS strategies outperformed their respective benchmarks during Q1 and March, respectively.
Tactical positioning for Q2 and April 2015 based on TAARSS
For Q2 we recommend an almost equal mix of Bonds and Equity, while limiting Commodity to a minimum allocation. Basically markets are divided, some investors are confident on growth others are not as sanguine, therefore it should pay off to be diversified. In terms of fixed income term allocations, prefer the belly of the curve during Q2, effectively lowering duration respective to Q1.
This month in global equity markets prefer Intl DM over EM, and stay neutral to the US. Region wise prefer Europe and Asia Pacific, while staying neutral to North America, and away from Latin America. In US equities prefer Small and Mid caps, while keeping Large Caps at a minimum. Sector wise Domestic Cyclicals show the best support, especially Consumer Discretionary. Defensives are mixed with Telecom and Health Care showing support, while Utilities and Cons. Staples suggesting selling pressure. Industry wise we highlight Aerospace & Defense which continues to experience very strong support. In Intl DM countries prefer Germany and Japan. Within EM countries India continues to show strong investment demand support despite the performance setback last month; similarly Taiwan has also experienced some good support. The rest of the countries seem weak. For Fixed Income prefer credit over rates, but stay within investment grade.
Source: Deutsche Bank-Synthetic Equity & Index Strategy-Global
Nasdaq Q-50's Strong Q1 and other Monthly Performance Highlights
April 6, 2015--The OMX Nordic Index Family, the benchmarks of the Nordic markets, have experienced a strong start to 2015 on the back of a collapsing Krona. The SEK has weakened by over 10% year to date as the European continent, not just the Euro, have been on the wrong side of the US Dollar.
However, that currency swing has richly rewarded investors in the local European equity markets with strong outperformance over the US market.
The Nasdaq Composite had a historic month in March as it crossed the 5000 threshold for the second time ever and first time since March 2000. The difference between 5,000 in March 2000 versus 5,000 in March 2015 has been widely dissected by the financial press, but it's worth pointing out again the massive shift the Nasdaq-listed stocks have undertaken in their fundamental strength while also driving significant innovation to the world through technology, healthcare and consumer goods.
Source: Nasdaq
BATS Global Markets March 2015 Update: Reports Another Record Month in U.S. Options with 9.4% Market Share; 20.8%
U.S. Equities Market Share, 23.3% European Equities Market Share
April 6, 2015--Chris Concannon Assumed CEO Role March 31st, Joe Ratterman Now Chairman
April 6, 2015--BATS Global Markets (BATS) today reported March volume, market share, and monthly highlights including its best month on record for U.S. Options market share.
BATS Options reported 9.4% market share, up from 4.1% one year ago and surpassing the previous monthly market share record of 8.8% set in January 2015.
Additionally, in Europe, BXTR, BATS Chi-X Europe's trade reporting facility...
Source: BATS Global Markets
IMF-Islamic Finance: Opportunities, Challenges, and Policy Options
April 6, 2015--Summary: The SDN discusses the main policy issues and challenges in building an inclusive and safe Islamic finance industry, with emphasis on Islamic banking and Sukuk markets.
To this end, it discuses why Islamic finance matters, taking into account its recent and prospective growth; and, its potential contributions in terms of financial inclusion, support for small-and medium-sized enterprises and investment in public infrastructure and, in principle, reduced systemic risk. It then covers a range of regulatory and other challenges, and offers policy advice, to address factors that hamper the development of the industry and, more generally, the delivery of its potential benefits. The paper covers regulatory and supervisory issues, safety nets and resolution frameworks, access to finance, Sukuk markets, and macroeconomic policies.
Source: IMF
Record profits for listed fund managers
April 5, 2015--Listed fund managers racked up record profits of $40bn last year as operating margins hit a seven-year high of 33 per cent.
According to global analysis by Casey, Quirk & Associates, an industry consultant, average profit margins are now just one percentage point below their 2007 pre-crisis peak of 34 per cent, having hit a low of 26 per cent in 2009.
Source: FT.com
Chinese asset managers arrive in London
April 5, 2015--Two Chinese asset management companies have consolidated their presence in London, ending months of speculation over whether China's fund houses would enter the UK market.
Nord Engine Asset Management, a subsidiary of Chinese private equity firm Nord Engine Group, which has RMB17bn ($3bn) of assets under management, opened its first UK office in the City of London last month.
Source: FT.com
Mutual funds deny systemic risk in developing markets
April 5, 2015--Mutual fund investors own only a small slice of emerging market assets and are unlikely to pose a systemic risk to the developing world,
a leading trade body has argued.
Source: FT.com
Bond funds post $102 billion inflows in first quarter, highest demand since 2001
April 3, 2015--Investors worldwide poured $8.5 billion into fixed-income funds in the week ended April 1, marking the first three months of this year as the biggest first quarter for fixed-income inflows since 2001, data from a Bank of America Merrill Lynch Global Research report showed on Friday.
The first quarter posted net cash inflows of $102 billion, according to the BofA report, which also cited data from fund-tracker EPFR Global. Investment-grade bond funds saw the majority of the net inflows in the latest week with $5.3 billion.
Source: Reuters
DECPG Global Weekly-April 3, 2015
March 3, 2015--Taking Stock
Improvement in U.S. labor market slowed in March. Nonfarm payrolls rose by a seasonally adjusted 126,000 jobs in
March, well below the expected 245,000 and down from 264,000 in February and from an average of 324,000 in the final
three months of 2014.
Earlier, data showed that jobless claims in U.S. fell by 20,000 to a seasonally adjusted 268,000 in the week ended March 28 (Figure 1), the lowest weekly level since the period ended January 24 and the second-lowest in at least a year. The four-week moving average of claims, which smoothes volatility, dropped by 14,750 to 285,550.
ECB announced plans to make QE bonds available for lending. The European Central Bank announced plans on Thursday to make government bonds bought under its quantitative easing program available for lending. As part of a plan to keep its debt-purchase program from distorting bond markets, the ECB introduced a 'securities lending' framework that includes a fixed borrowing term of one week with an option to roll over any loan three times, and set limits on the amount of bonds that can be borrowed.
Source: World Bank
IMF Working paper-Investment in Emerging Markets We Are Not in Kansas Anymore...Or Are We?
April 3, 2015--Summary: We document that (i) although private investment growth in emerging markets has decelerated in recent years, it came down from cyclical highs and remains close to pre-crisis trends; and (ii) investment-to-output ratios generally remain close to or above historical averages.
We show that investment is positively related to expect future profitability, cash flows and debt flows, and negatively associated with leverage. Critically, it is also positively related to (country-specific) commodity export prices and capital inflows. Lower commodity export prices and expected profitability, a moderation in capital inflows, and increased leverage account for the bulk of the recent investment deceleration.
Source: IMF
