BlackRock has launched two new fixed income exchange traded funds (ETFs) with the aim to provide investors with greater granularity in US bond exposures. iShares $ Intermediate Credit Bond UCITS ETF (ICBU) invests in a subset of US investment grade bonds, with maturity dates between one and 10 years. The fund provides exposure to a broad array of investment grade corporate, sovereign, supranational, local authority and non-US agency bonds. The fund offers income generation potential relative to US treasuries with similar maturities. iShares $ TIPS 0-5 UCITS ETF (TIP5) invests in short-term treasury inflation-protected securities and aims to provide an inflation hedge with lower interest rate risk, while offering growth potential. The bonds included in the underlying index have a duration ranging between zero and five years and are US dollar denominated. BlackRock now offers 86 bond ETFs in Europe, offering granular exposures across duration and risk levels.
ETFGI, an independent research and consultancy firm on trends in the global ETF/ETP ecosystem, has reported assets invested in ETFs/ETPs listed in Europe reached a new record high of $658 billion at the end April 2017 surpassing the prior record of $640 billion set at the end of Q1 2017. At the end of April 2017, the European ETF/ETP industry had 2,257 ETFs/ETPs, with 7,128 listings, assets of $658 billion, from 60 providers listed on 27 exchanges in 21 countries. ETFs and ETPs listed in Europe gathered net inflows of $5.20 billion in April marking the 32nd month of positive net new asset flows. Year to date, net inflows stand at $40,562 million. At this point last year there were net inflows of $14,989 million. Amundi ETF gathered the largest net ETF/ETP inflows in April with $1.82 billion, followed by UBS ETFs with $1.24 billion and Lyxor AM with $910 milliom net inflows. YTD, iShares gathered the largest net ETF/ETP inflows YTD with $10.04 billion, followed by Lyxor AM with $5.51 billion and Amundi ETF with $5.44 billion net inflows.
DNCA Investments has launched its first onshore OEIC with the DNCA European Select Equity Fund. The fund will invest a minimum of 80 percent of assets in European (excluding UK) equities and employs a value investment approach, seeking stocks that are undervalued yet demonstrate sustainable profitability and growth. The DNCA European Select Equity Fund will be run by two portfolio managers. Both based in Paris, lead manager, Isaac Chebar, and co-manager, Don Fitzgerald, have combined investment experience of more than 40 years. Messrs Chebar and Fitzgerald will employ a valuation investment approach, which they have been using since 2007, utilising comprehensive stock picking processes to find companies undervalued by wider markets that have sustainable profitability and growth profiles.
Saxo Bank, the online multi-asset trading and investment specialist, has reported that its client collateral deposits have exceeded DKK 100 billion – a record high that is testament to current levels confidence amongst its client base said the bank. Saxo Bank’s client collateral deposits nearly doubled from 2013 where it amounted to DKK 50.6 billion. The bank’s strategic focus for much of the year so far has been on driving profitable growth and broadening Saxo's client base through continued investments in and the development of its multi-asset product offering. As of the last set of financial results, operating income for the Group in 2016 was DKK 2.9 billion up from DKK 2.1 billion in 2015. Net profit was DKK 302 million for 2016. The bank's capital position is strong with a Common Equity Tier 1 ratio of 14.9 percent, a Tier 1 capital ratio of 17.1 percent and a total capital ratio of 19.5 percent. The Common Equity Tier 1 buffer was DKK 1.0 billion, corresponding to 6.4 percent of the risk exposure amounts.