New Developments in Ukraine Drive Further Safe Haven Gold Buying. If increasing evidence that the Malaysian airliner downed in Ukraine was shot by ground-to-air missiles by separatists using equipment supplied by Russia is confirmed, the conflict is likely to escalate to the next level, with greater focus from the international community. While some of the ‘crisis premium’ in gold has dissipated in recent weeks, recent developments indicate that last week’s tragedy may drive demand for safe haven assets such as gold higher. Even if Russia reduces its immediate support for separatists due to concerns that the downing of the passenger jet will stoke an international backlash against the country, we are likely to see tensions remain high as Europe’s politicians are forced to join the US in taking a more aggressive stance against Russia.
Investors buying gold and oil ETPs on price dips
As the price of gold and oil fell in the first half of last week (before the tragedy in Ukraine), investors bought US$13mn of physical gold ETPs and US$26mn of ETFS Brent (OILB). Flows into OILB were at their highest in five weeks. Although the price of Brent fell most of last week, doubts about the speed at which Libya can ramp up production led investors to go long. Now, with the conflict in Ukraine possibly entering into a new phase, we could see demand for both commodities rise further. Gold is seen as a haven asset. And fears of more aggressive sanctions against Russia if it is implicated in the atrocity could tighten crude oil supplies.
China’s stimulus success drives demand for industrial metals
Last week we saw US$9.5mn of inflows into ETFS Industrial Metals (AIGI). That brings the monthly flow into the broad industrial metals ETP to US$52.5mn, the highest since its inception in 2006. Last week China announced its Q2 2014 GDP figures which hit 7.5% q-o-q annualised, beating consensus expectations and leaving forecasts of significant metal supply surpluses for this year in doubt. Aggregate financing data for China also released last week showed a 40% rise in June over May (90% over June 2013), highlighting the firepower flowing into the economy. In the first quarter of this year, real estate activity was somewhat muted as local government officials were reluctant to draw attention to their expansion plans amid a far-reaching probe into corruption by the central government. However, Premier Li Keqiang has reminded local leaders of their “inescapable responsibility” and has lambasted them for believing “doing nothing is better than doing something”, likening that frame of mind to a form of corruption itself. We expect infrastructure and house building to pick up during the course of this year, driving the demand for commodities such as industrial metals higher.
Wheat ETPs see US$8.5mn of inflows
We have seen nine consecutive weeks of inflows into long wheat ETPs despite the price having fallen continually for most of that period. Investors have built positions in the hope that the large surpluses forecasted by the USDA prove to be wrong which could lead to the next price rally. The crisis premium built into wheat had fallen over the past few months as it was clear that conflict in Ukraine had not affected shipments of wheat from the Black Sea region (the Former Soviet Union produces about 35% of global supplies). The recent events may ignite those fears once again.
Key events to watch this week
Investor focus is likely to remain on the evolving situation in Ukraine. US durable goods orders which fell in May are expected to have recovered lost ground in June. Further signs of strength in the US economy should benefit industrial metals and the PGMs in our view.
Important Information
This communication has been provided by ETF Securities (UK) Limited (”ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority
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Amundi MSCI World Minimum Volatility Screened Factor UCITSETFUCITSETFAcc (WMMV ETF) med ISIN IE0001DKJVC2, försöker spåra MSCI World Minimum Volatility Select ESG Low Carbon Target-index. MSCI World Minimum Volatility ESG Reduced Carbon Target-index spårar aktier från utvecklade länder över hela världen som är valda enligt låg volatilitet och ESG-kriterier (miljö, social och företagsstyrning). Indexet har som mål att minska utsläppen av växthusgaser och ett förbättrat ESG-poäng jämfört med jämförelseindex. Jämförelseindex är MSCI World-index.
Den börshandlade fondens TER (total cost ratio) uppgår till 0,25 % p.a. Amundi MSCI World Minimum Volatility Screened Factor UCITSETFUCITSETFAcc är den enda ETF som följer MSCI World Minimum Volatility Select ESG Low Carbon Target-index. ETFen replikerar det underliggande indexets prestanda genom fullständig replikering (köper alla indexbeståndsdelar). Utdelningarna i ETF:n ackumuleras och återinvesteras.
Denna ETF lanserades den 30 oktober 2024 och har sin hemvist i Irland.
Investeringsmål
Amundi MSCI World Minimum Volatility Screened Factor UCITSETFAcc försöker replikera, så nära som möjligt, oavsett om trenden är stigande eller fallande, resultatet för MSCI World Minimum Volatility Select ESG Low Carbon Target Index (”Indexet”). Delfondens mål är att uppnå en tracking error-nivå för delfonden och dess index som normalt inte kommer att överstiga 1 %.
Det betyder att det går att handla andelar i denna ETF genom de flesta svenska banker och Internetmäklare, till exempel DEGIRO, Nordnet, Aktieinvest och Avanza.
· UBS Asset Management lanserar EUR och USD Treasury Yield Plus UCITS ETFer
· ETFerna syftar till att öka avkastningen samtidigt som riskegenskaperna hos deras referensindex bibehålls
· En egenutvecklad regelbaserad modell används för att bredda investeringsuniversumet för att förbättra tillgången till en större uppsättning möjligheter
UBS Asset Management (UBS AM) tillkännager idag lanseringen av två nya ETF:er som syftar till att leverera förbättrad avkastning, samtidigt som riskprofilen för deras underliggande statsobligationsindex bevaras. UBS EUR Treasury Yield Plus UCITSETF och UBS USD Treasury Yield Plus UCITSETF syftar till att överträffa sina respektive Bloomberg Treasury-index genom att rikta in sig på högre optionsjusterad spread (OAS), samtidigt som de bibehåller en strikt anpassning till duration, kreditkvalitet och landsexponering1.
Portföljkonstruktion
· Universumsdefinition: Varje ETF börjar med sitt respektive Bloomberg Treasury Index (EUR eller USD) och utökar uppsättningen möjligheter till att inkludera högkvalitativa statsobligationer, överstatliga obligationer och agentobligationer (SSA), vilka kan erbjuda en högre avkastning än statsobligationer. · Optimering: SSA-obligationerna väljs ut med hjälp av en egenutvecklad regelbaserad modell som maximerar OAS samtidigt som strikta begränsningar för rating, land, sektor, duration och kurvrisk följs.
· Dynamisk allokering: Portföljförvaltaren kan använda sitt eget omdöme för att ytterligare förbättra portföljens avkastning och/eller riskprofil.
André Mueller, chef för kundtäckning, UBS AM, sa: ”De snabbt ökande tillgångarna i förbättrade ränte-ETF:er signalerar en växande investerarefterfrågan på fonder som går utöver traditionella passiva riktmärken. UBS AM har långvarig expertis inom regelbaserade strategier, så jag är glad att vi för första gången kan erbjuda denna möjlighet till ett bredare spektrum av kunder genom det bekväma, transparenta och effektiva ETF-omslaget.”
Fonden är registrerad för försäljning i Österrike, Danmark, Finland, Frankrike, Tyskland, Irland, Italien, Liechtenstein, Luxemburg, Nederländerna, Norge, Spanien, Sverige, Schweiz och Storbritannien.