Global ETF News Older than One Year
BlackRock clarifies ETF 'true market' claim
July 26, 2013--As heavy outflows, product withdrawals and confusion over pricing vex the ETF industry, BlackRock softens its claim that investor demand had made ETFs the 'true market'.
It’s unclear whether the problems are a blip or a more serious threat to the products.
It was a classic case of turning a good news story
Source: Euromoney
Winthrop Capital Management-2nd QTR 2013 Economic & Capital Market Summary
July 26, 2013--We are approaching the five year anniversary of the beginning of the Financial Crisis. By this time in 2008 we had already experienced the complete seizure of the Auction Rate Preferred securities market and the takeover of Bear Stearns by JP Morgan Chase. In September of 2008, we would see the collapse of Lehman Brothers and the government takeover of AIG.
We stand here today, shoulders slumped, and heads bowed mourning the lack of real progress in addressing the structural problems that are impeding sustained economic growth and private credit expansion. The brutal reality is that as long as the Federal Reserve maintains any form of open market purchases of securities as a means to manipulate interest rates our economy and capital markets remain on life support, unable to function on their own. As a result, we expect returns on financial assets to be relatively low over the near term as economic uncertainty impedes fixed investment and business expansion.
With over $2.6 trillion in monetary stimulus from the Federal Reserve, the economy at best is just muddling along. And, now there are signs that are raising concern for us. These include an increase in consumer debt, slow growth in job creation, slow growth in small business, and constrained private credit expansion. On the positive side, the domestic manufacturing sector, highlighted by the auto industry has shown solid growth while the recovery in domestic housing remains strong.
view the Winthrop Capital Management-2nd QTR 2013 Economic & Capital Market Summary
Source: Winthrop Capital Management
EPFR Global News Release-Fund flows flashing green for Europe equity, US junk bonds and healthcare in late July
July 26, 2013-Flows into EPFR Global-tracked funds during the week ending July 24 highlighted investor faith in the US recovery and their growing conviction that this Europe's battered economy is finally on the mend.
Retail commitments to US Equity Funds hit a level last seen in 3Q09 and US High Yield Bond Funds posted their second biggest weekly inflow on record while combined flows into the two major Europe Regional Equity Fund groups were the biggest since mid-December.
The week also saw investors respond to the improved prospects for structural reform in Japan and signals from China’s government that its willingness to trade growth for reform stops at a point north of 7%. Asia ex-Japan Equity Funds snapped a nine week outflow streak, Japan Equity Funds posted inflows for the 27th straight week and flows into Japan Bond Funds were the highest since the second week of January.
Visit www.epfr.com for more info
Source: EPFR
Canadian securities regulators enter into supervisory cooperation arrangements with EU and EEA financial regulators
July 25, 20130-The Ontario Securities Commission (OSC), Autorité des marchés financiers (AMF), Alberta Securities Commission (ASC) and British Columbia Securities Commission (BCSC) today announced they have entered into supervisory Memorandums of Understanding (MOUs) with financial regulators of member states of the European Union (EU) and European Economic Area (EEA) regarding the supervision of alternative investment fund managers as required under the EU Alternative Investment Fund Managers Directive.
The MOUs are a pre-condition for allowing non-EU Alternative Investment Fund Managers to manage and market alternative investment funds (including hedge funds, private equity and real estate funds) in the EU and to perform fund management activities on behalf of EU Managers.
Source: Lautorite.qc.ca
Arctic methane 'time bomb' could have huge economic costs
June 24, 2013--Scientists say that the release of large amounts of methane from thawing permafrost in the Arctic could have huge economic impacts for the world.
The researchers estimate that the climate effects of the release of this gas could cost $60 trillion (£39 trillion), roughly the size of the global economy in 2012.
Source: BBC News
NYSE Euronext Joins The UN Sustainable Stock Exchange Initiative
Commitment further demonstrates NYSE Euronext's leadership in Corporate Responsibility and Sustainability
July 24, 2013--NYSE Euronext today announced that it has joined the United Nations' Sustainable Stock Exchanges (SSE) initiative,
which aims to explore how exchanges can work together with investors, regulators, and companies to enhance corporate transparency on Environmental, Social and Corporate Governance (ESG) issues and encourage responsible long-term approaches to investment.
Source: NYSE Euronext
NASDAQ OMX Reports Second Quarter 2013 Results
Second quarter 2013 non-GAAP diluted EPS of $0.62, second quarter 2013 GAAP diluted EPS of $0.52.
Second quarter 2013 net revenues1 were a record $451 million, up 8% from the prior year quarter's non-GAAP net revenue. On an organic basis, assuming constant currency and excluding acquisitions, net revenues increased 1% year-over-year.
All four business segments experienced organic revenue growth year-over-year.
Non-transaction based revenues were 72% of our total second quarter 2013 net revenues, and increased 10% from the prior year quarter.
During the second quarter, NASDAQ OMX closed two strategically significant acquisitions, the Thomson Reuters' IR, PR and Multimedia businesses, and the eSpeed benchmark Treasury trading platform.
July 24, 2013--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today reported results for the second quarter of 2013. Second quarter net revenues were $451 million, up from $416 million in the prior year period on a non-GAAP basis, driven by acquisitions and organic growth in all four business segments. On an organic basis second quarter net revenues increased 1% year-over-year.
Source: NASDAQ OMX
PowerShares ETFs extend lead in smart beta solutions
July 24, 2013--PowerShares Canada, an affiliate of Invesco PowerShares Capital Management LLC (Invesco PowerShares), a leading global provider of exchange-traded funds (ETFs), announced the PowerShares suite of fundamental index ETFs recently surpassed US$5 billion in assets under management (AUM) globally.
PowerShares fundamental-weighted index ETFs trade in Canada, the U.S. and Europe.
"Since launching in 2009, PowerShares Canada has been focused on providing investors with a diverse family of 'smart beta' strategies," said Michael Cooke, Head of Distribution, PowerShares Canada. "Investors looking for higher risk-adjusted returns than those of a cap-weighted benchmark are readily adopting ETFs that employ smart beta strategies, such as fundamental, low-volatility and high-beta indexing."
Source: Canadian ETF Watch
Index Association seeks ‘best practice’ standards
July 23, 2013--The Index Industry Association on Monday launched the first unified set of "best practice" guidelines for index providers amid continuing debate over the need for improvements in standards in the index funds market.
Global financial regulators have stepped up their scrutiny of the indexing industry in the aftermath of the Libor scandal.
Source: FT.com
Market highlights for first half-year 2013
July 23, 2013--The global market capitalization continued to increase (+3%) in the first half of 2013. The relatively good performance of stock markets in the recent period was largely driven by
the Americas.
The important growth rates of market capitalization observed in the last three semesters in Americas (chronologically +10.3%, +7.4% and +7.4%) enabled this region to significantly surpass the market capitalization level observed in June 2011, before the sharp decline in the summer 2011. By comparison, the Asia Pacific market capitalization slightly decreased in the first half of 2013 (-1.2%). This decrease was mainly due to exchange rates effect. In constant USD, the market capitalization increased by 4.6%. It increased by 0.6% in Europe, Africa, Middle East (+3.6% in constant USD). In both regions market capitalizations have not recovered fully from two years ago.
Source: WFE (World Federation of Exchanges)
