Global ETF News Older than One Year
Global ETF and ETP assets reached US$2.4 trillion, a new record high, at the end of 2013
January 13, 2014--US$24.5 billion net inflows in December and positive market performance pushed assets in the global ETF/ETP industry to a new record high of US$2.4 trillion at year-end 2013, according to preliminary findings from ETFGI's global ETF and ETP industry insights report.
The global ETF/ETP industry had 5,090 ETFs/ETPs, with 10,172 listings, from 218 providers on 60 exchanges at the end of 2013.
"After spending most of 2013 wondering when and how the Fed would taper its QE scheme, investors felt a degree of positive cheer and certainty after the Fed announced in December that the US economy was strong enough for it to begin to taper by US$10 billion in January 2014" according to Deborah Fuhr, Managing Partner at ETFGI.
Source: ETFGI
Q4 Performance Results for Dow Jones Islamic Market Indices and S&P Shariah-Indices Shariah Report-Q4 2013
January 13, 2014--Some fourth-quarter 2013 highlights from the Shariah Report include:
Our major Shariah-compliant benchmarks covering MENA, the U.S. and global equities performed in line with conventional indices in 2013 as the Dow Jones Islamic Market World Index, S&P Pan Arab Composite Shariah and S&P 500 Shariah each closed the year within 200 bps of their non-Shariah counterparts.
The S&P Pan Arab Composite Shariah gained 21.2% in 2013, which is roughly in-line with the 21.7% return of its non-Shariah counterpart.
The U.A.E. was 2013’s star performer as the S&P UAE Shariah Index gained more than 100% for the year.
Source:S&P Dow Jones Indices LLC
ETFS Precious Metals Weekly-Gold Greets 2014 and Tapering Enthusiastically Potentially Forming a Double Bottom at $1,200
January 13, 2014--Precious metals ring in the new year with a rally. Precious metals ended the
first full week of the 2014 year on a strong note, boosted by the disappointing
December US employment data on Friday.
Year-to-date, platinum has been the stalwart with a 5.0% gain, just ahead of the 3.4% increase in gold, which ended the week at US$1,244/oz. (London PM fix). Gold may be carving out a double bottom near the US$/1,200 level, supported by strong physical demand, notably from Asia. Indicative of strong physical demand, gold one month forward rates (GOFO) remain negative (see chart below). At the end of 2013 when the December futures contract expired, the gold futures curve was in backwardation, another indication of strong physical demand. In contrast to a year ago, after the strong tailwinds coming from the global economic rebound in 2013, analyst consensus expectations for 2014 are strongly in favour of continued depreciation in gold prices and appreciation in equity prices.
Source: ETF Securities
ETFGI: iShares edges out Vanguard for top ETF flows in 2013
January 13, 2014--lackRock (BLK)'s iShares topped the ETF net inflow rankings in 2013 with $61 billion, according to a report from research and consultancy firm ETFGI.
The net inflows of iShares narrowly beat out Vanguard's inflows of $60.2 billion. State Street Global Advisors' set of ETFs, SPDR, finished third with $18.3 billion, while PowerShares took fourth place with $15.4 billion.
Source: Pensions & Investmenst
Vanguard smashes world record for inflows
January 12, 2014--Vanguard broke the world record for asset gathering by an investment house for the second successive year in 2013.
Net inflows into its funds reached $150bn globally last year, according to preliminary data from the world's third-largest manager by assets, aided by rising non-US demand for its low-cost funds.
Source: FT.com
Work on the Liquidity Coverage Ratio finalised by the Basel Committee
January 12, 2013--In January 2013, the Basel Committee's oversight body, the Group of Governors and Heads of Supervision (GHOS), agreed the final form of Basel III's Liquidity Coverage Ratio (LCR).
At that time, the GHOS asked the Committee to undertake some additional work on liquidity disclosure, the use of market-based indicators of liquidity within the regulatory framework, and the interaction between the LCR and the provision of central bank facilities. The Committee has completed this work, and has today published a package of material that responds to these requests.
view the Liquidity coverage ratio disclosure standards
Source: BIS
Revisions to the Net Stable Funding Ratio proposed by the Basel Committee
January 12, 2014--The Basel Committee has today issued proposed revisions to the Basel framework's Net Stable Funding Ratio (NSFR), following endorsement by the Committee's governing body, the Group of Central Bank Governors and Heads of Supervision (GHOS).
The NSFR is a key component of the Basel III reforms to promote a more resilient banking sector. It will require that banks maintain a stable funding profile in relation to their on-and off-balance sheet activities. A robust funding structure makes it less likely that disruptions to a bank's regular funding sources will erode its liquidity position in a way that would increase the risk of its failure and, potentially, lead to broader systemic stress. In particular, the NSFR limits over-reliance on short-term wholesale funding, encourages better assessment of funding risk across all on- and off-balance sheet items, and promotes funding stability.
view the Consultative Document Basel III: The Net Stable Funding Ratio
Source: BIS
Important steps towards completion of post-crisis regulatory reforms endorsed by Group of Governors and Heads of Supervision
January 12, 2014--At its meeting in Basel today, the Basel Committee's oversight body, the Group of Governors and Heads of Supervision (GHOS), endorsed a number of important steps in the completion of the post-crisis reform agenda.
The GHOS today endorsed proposals from the Basel Committee on a common definition of the leverage ratio, which has been formulated to overcome differences in national accounting frameworks that have previously prevented ready comparison of bank leverage ratios across borders. The fully specified standard will be published by the Committee later today.
Source: BIS
Deutsche Borse deepens push into Asia commodities
January 12, 2014--Deutsche Börse is deepening its push into commodities trading in Asia by taking a majority stake in Cleartrade Exchange, the Singapore-based commodity derivatives bourse.
The German exchange operator has bought a 52 per cent stake in Cleartrade via its European Energy Exchange (EEX) subsidiary. EEX paid cash for the controlling stake but further details of the transaction, which closed at the end of December, were not disclosed. Regulators in Singapore and Europe have approved the purchase.
Source: FT.com
SPDR Weekly Report
January 10, 2014--Weekly Market Report
ECONOMIES: Employment disappoints in both the US and Canada. The Bank of England leaves policy unchanged. The European Central Bank also remains on hold but strikes a decidedly dovish tone. Retail sales rise solidly in Australia.
MARKETS: Federal spending authority runs out next week in the US but investors don't appear worried. Equities are mixed. Government bonds have caught a bid. CAD is notably weaker. Oil prices change little.
NEXT WEEK PREVIEWED
SPOTLIGHT: Retail sales and industrial production will likely rise moderately in the US, while housing starts will probably fall.
Inflation likely remains benign in the US and UK and extremely low in France. Job creation probably remains sluggish in Australia.
THE WEEK IN REVIEW
US
The MINUTES OF THE DECEMBER FED POLICY MEETING reveal a
Committee that is now sufficiently confident about the
economy's prospects to begin tapering, but remains keenly
aware of the downside risks, and especially eager to prevent
any premature tightening from the bond market by stressing a
gradual and data dependent approach:
"[Participants] generally indicated that the broad contours
of their outlook for real activity, the labor market, and
inflation had not changed materially since their October
meeting, but most expressed greater confidence in the
outlook and saw the risks associated with their forecasts
of real GDP growth and the unemployment rate as more
nearly balanced than earlier in the year."
Moreover:
"... most members agreed that the cumulative
improvement in labor market conditions and the likelihood
that the improvement would be sustained indicated that
the Committee could appropriately begin to slow the pace
of its asset purchases at this meeting."
However:
"...members also weighed a number of considerations
regarding such an action, including their degree of
confidence in prospects for sustained above-potential
economic growth, continued improvement in labor
market conditions, and a return of inflation to its...
For more information, including product fact sheets and related whitepapers, visit spdrs.com.
Source: SSgA
