Alternative Investments, the Year For a More Flexible Approach
Lyxors Jean-Marc Stenger on Alternative Investments , the Year For a More Flexible Approach.
Lyxor Asset Management, a subsidiary of Societe Generale Group, was founded in 1998 and counts 600 professionals worldwide managing US$ 111.6Bn * of assets.
Lyxor customizes active investment solutions as the expert in all modern investment techniques: ETFs & Indexing, Alternative, Structured, Active Quantitative & Specialized investments.
Supported by strong research teams and leading innovation capabilities, Lyxor’s investment specialists strive to optimize performance and risks across all asset classes.
* USD 111.6 bn – Equivalent to EUR 83.4 bn – AuMs as 31st of July, 2014
A company incorporated under French law, Lyxor has gradually extended its geographical reach. In addition to its presence throughout Europe, it also has several offices in Asia and an affiliate in the United States, Lyxor Asset Management Inc.
Lyxor’s Values
From the outset, three key values have continuously been at the core of every solution from Lyxor: innovation, transparency and flexibility.
Innovation
Lyxor’s product development philosophy is based on financial innovation, as the capacity to identify risk factors and isolate performance drivers to construct products that offer sustainable sources of performance. Lyxor manages this thanks to its renowned in-house research team specialized in macroeconomics, quantitative and alternative investments.
Transparency
Lyxor has implemented a comprehensive reporting framework to provide clients with detailed information relating to the assets underlying their investments. Lyxor’s 30-strong independent Risk Department additionally ensures thorough and constant monitoring of all risk factors embedded in any investment solutions.
Flexibility
Lyxor also brings together an entrepreneurial spirit doubled with the reliability of a rapidly expanding global player constantly striving to deliver solutions fine-tuned to investors’ risk profile and return objectives, whatever their fiscal, accounting, or regulatory constraints.
Commodity ETP Weekly Prepare for Short-Covering Rallies
ETFS Daily Short Gold (SBUL) saw its highest redemption since inception.
Inflows of US$6.8mn for long agricultural ETP baskets indicates that investors see value in grains after falling to their lowest price levels since 2010.
ETFS Daily Leveraged Natural Gas (LNGA) saw US$4.6mn of inflows, the highest in 9 weeks, as storage values came under expectations.
Long nickel ETPs received US$1.4mn of inflows as the Indonesian government reiterated that the ore export ban from will remain.
Bargainhunting investors are beginning to be attracted by lower commodity prices, with positive flows into agricultural baskets and silver signaling a belief that the bottom is near. Nonetheless, most commodity prices continued lower in the past week and softer sentiment in some sectors prompted outflows. Gold remained under pressure last week, with all indications that the Federal Reserve’s policy stance will be tighter in 2015. Ongoing concern over the outlook for China also weighed on the performance of industrial metals and industrially-inclined precious metals. We believe that with speculative shorts across many commodities having risen to multi-period highs, the prospect for short-covering rallies is high. Over the coming weeks, investors are likely to start building long positions with most commodity trading at or near the cost of production.
ETFS Daily Short Gold (SBUL) saw its highest redemption since inception. After a protracted period of building up shorts on gold, investors pulled back as the price of gold approaches our estimated all-in cost of production and the widely watched support level near US$1,200/oz. US$47.7mn flowed out of SBUL, wiping out the seven months of flows into the short product. While investors continued to pare their long gold positions as well, with US$51mn leaving physical gold ETPs last week, taking further bets on a decline in price seems risky at this point.
Inflows of US$6.8mn for long agricultural ETP baskets indicates that investors see value in grains after falling to their lowest price levels since 2010. Marking the highest inflow in 9 weeks, we believe that sentiment is slowly turning. Investors have been buying wheat ETPs for 19 consecutive weeks now and there is a growing sense that all ‘good’ production news has now been priced in. Meanwhile sugar prices bounced up 6.6%, attracting a further US$0.9mn into ETFS Sugar (SUGA), marking 8 consecutive weeks of flows into the ETP. Sugar remains close to a 4-year low as the fifth consecutive year of surplus is expected this year.
ETFS Daily Leveraged Natural Gas (LNGA) saw US$4.6mn of inflows, the highest in 9 weeks, as storage values came under expectations. US natural gas stocks increased by 97 billion cubic feet in the week ending September 19. That compared with an expected increase of about 100 billion cubic feet anticipated by analysts and sent prices 1.6% higher last week. As we approach winter, seasonal demand for natural gas will rise. A failure to build inventory or an unusually cold winter like last year could be key catalysts for sustained price increases.
Long nickel ETPs received US$1.4mn of inflows as the Indonesian government reiterated that the ore export ban will remain. Indonesia, the world’s largest nickel producer, had implemented the ban in January this year and has unusually stuck to it in a bid to develop domestic smelting facilities. Nickel prices nevertheless fell, along with other industrial metals on the back of softer-than-expected PMIs and durable goods data.
Key events to watch this week. US payrolls will be the centre of attention this week as the market judges the capacity of the US economy to absorb an interest rate hike that will eventually follow when the Fed finishes its period of extraordinary monetary support. A strong reading is likely to be US dollar positive and weigh on commodities priced in the currency. After the lacklustre take-up of the TLTRO (the ECB’s form or quantitative easing), the market will be keen to hear President Draghi’s view of the programme at the ECB’s post-policy meeting conference.
Nitesh Shah, Research Analyst at ETF Securities provides an analysis of last week’s performance, flow and trading activity in commodity exchange traded products and a look at the week ahead.
For more information contact:
ETF Securities Research team
ETF Securities (UK) Limited
T +44 (0) 207 448 4336
E info@etfsecurities.com
Important Information
General
This communication has been provided by ETF Securities (UK) Limited (”ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority.
This is a strictly privileged and confidential communication between ETFS UK and its selected client. This communication contains information addressed only to a specific individual and is not intended for distribution to, or use by, any person other than the named addressee. This communication (i) is provided for informational purposes only, (ii) should not be construed in any manner as any solicitation or offer to buy or sell any securities or any related financial instruments, and (iii) should not be construed in any manner as a public offer of any securities or any related financial instruments. If you are not the named addressee, you should not disseminate, distribute or copy this communication. Please notify the sender immediately if you have mistakenly received this communication. When being made within Italy, this communication is for the exclusive use of the ”qualified investors” and its circulation among the public is prohibited.
This document is not, and under no circumstances is to be construed as, an advertisement or any other step in furtherance of a public offering of shares in the United States or any province or territory thereof. Neither this document nor any copy hereof should be taken, transmitted or distributed (directly or indirectly) into the United States.
This document may contain independent market commentary prepared by ETFS UK based on publicly available information. ETFS UK does not warrant or guarantee the accuracy or correctness of any information contained herein and any opinions related to product or market activity may change. Any third party data providers used to source the information in this communication make no warranties or representation of any kind relating to such data.
Any historical performance included in this document may be based on back testing. Back tested performance is purely hypothetical and is provided in this document solely for informational purposes. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance.
Historical performance is not an indication of or a guide to future performance.
The information contained in this communication is neither an offer for sale nor a solicitation of an offer to buy securities. This communication should not be used as the basis for any investment decision.
ETFS UK is required by the United Kingdom Financial Conduct Authority (”FCA”) to clarify that it is not acting for you in any way in relation to the investment or investment activity to which this communication relates. In particular, ETFS UK will not provide any investment services to you and or advise you on the merits of, or make any recommendation to you in relation to, the terms of any transaction. No representative of ETFS UK is authorised to behave in any way which would lead you to believe otherwise. ETFS UK is not, therefore, responsible for providing you with the protections afforded to its clients and you should seek your own independent legal, investment and tax or other advice as you see fit.
Risk Warnings
Any products referenced in this document are generally aimed at sophisticated, professional and institutional investors. Any decision to invest should be based on the information contained in the prospectus (and any supplements thereto) of the relevant product issue. The price of any securities may go up or down and an investor may not get back the amount invested. Securities may valued in currencies other than those in which there are priced and will be affected by exchange rate movements. Investments in the securities which provide a short and/or leveraged exposure are only suitable for sophisticated, professional and institutional investors who understand leveraged and compounded daily returns and are willing to magnify potential losses by comparison to investments which do not incorporate these strategies. Over periods of greater than one day, investments with a short and/or leveraged exposure do not necessarily provide investors with a return equivalent to a return from the unleveraged long or unleveraged short investments multiplied by the relevant leverage factor. Investors should refer to the section entitled ”Risk Factors” in the relevant prospectus for further details of these and other risks associated with an investment in any securities referenced in this communication.
If you have any questions please contact ETFS UK at +44 20 7448 4330 or info@etfsecurities.com for more information.
Commodity currencies under pressure as FX volatility rises
ETFS Currency Weekly Commodity currencies under pressure as FX volatility rises A weekly overview of global currency market developments. The report details the past week’s performance of G10 currency pairs and currency baskets, directional model signals for the week ahead, longer-term consensus currency forecasts, futures market positioning data and a macroeconomic commentary on the FX market.
ETF Securities Research team
ETF Securities (UK) Limited
T +44 (0) 207 448 4336
E info@etfsecurities.com
General
This communication has been issued and approved for the purpose of section 21 of the Financial Services and Markets Act 2000 by ETF Securities (UK) Limited (”ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority (”FCA”).
Investments may go up or down in value and you may lose some or all of the amount invested. Past performance is not necessarily a guide to future performance. You should consult an independent investment adviser prior to making any investment in order to determine its suitability to your circumstances.
The information contained in this communication is for your general information only and is neither an offer for sale nor a solicitation of an offer to buy securities. This communication should not be used as the basis for any investment decision. Historical performance is not an indication of future performance and any investments may go down in value.
This communication may contain independent market commentary prepared by ETFS UK based on publicly available information. Although ETFS UK endeavours to ensure the accuracy of the content in this communication, ETFS UK does not warrant or guarantee its accuracy or correctness. Any third party data providers used to source the information in this communication make no warranties or representation of any kind relating to such data. Where ETFS UK has expressed its own opinions related to product or market activity, these views may change. Neither ETFS UK, nor any affiliate, nor any of their respective, officers, directors, partners, or employees accepts any liability whatsoever for any direct or consequential loss arising from any use of this publication or its contents.
ETFS UK is required by the FSA to clarify that it is not acting for you in any way in relation to the investment or investment activity to which this communication relates. In particular, ETFS UK will not provide any investment services to you and or advise you on the merits of, or make any recommendation to you in relation to, the terms of any transaction. No representative of ETFS UK is authorised to behave in any way which would lead you to believe otherwise. ETFS UK is not, therefore, responsible for providing you with the protections afforded to its clients and you should seek your own independent legal, investment and tax or other advice as you see fit.
This document is not, and under no circumstances is to be construed as, an advertisement or any other step in furtherance of a public offering of shares or securities in the United States or any province or territory thereof. Neither this document nor any copy hereof should be taken, transmitted or distributed (directly or indirectly) into the United States.
Other than as set out above, investors may contact ETFS UK at +44 (0)20 7448 4330 or at retail@etfsecurities.com to obtain copies of prospectuses and related regulatory documentation, including annual reports. Other than as separately indicated, this communication is being made on a ”private placement” basis and is intended solely for the professional / institutional recipient to which it is delivered.
Third Parties
Securities issued by each of the Issuers are direct, limited recourse obligations of the relevant Issuer alone and are not obligations of or guaranteed by any of UBS AG, Merrill Lynch Commodities Inc. (”MLCI”), Bank of America Corporation (”BAC) or any of their affiliates. UBS AG, MLCI and BAC, Shell Trading Switzerland, Shell Treasury, HSBC Bank USA N.A., JP Morgan Chase Bank, N.A., Deutsche Bank AG any of their affiliates or anyone else or any of their affiliates. Each of UBS AG, Merrill Lynch Commodities Inc. (”MLCI”), Bank of America Corporation (”BAC) or any of their affiliates. UBS AG, MLCI and BAC, Shell Trading Switzerland, Shell Treasury, HSBC Bank USA N.A., JP Morgan Chase Bank, N.A. and Deutsche Bank AG disclaims all and any liability whether arising in tort, contract or otherwise (save as referred to above) which it might have in respect of this document or its contents otherwise arising in connection herewith.
”Dow Jones,” ”UBS”, DJ-UBS CISM,”, ”DJ-UBS CI-F3SM,” and any related indices or sub-indices are service marks of Dow Jones Trademark Holdings LLC (”Dow Jones”), CME Group Index Services LLC (”CME Indexes”), UBS AG (”UBS”) or UBS Securities LLC (”UBS Securities”), as the case may be, and have been licensed for use by the Issuer. The securities issued by CSL although based on components of the Dow Jones UBS Commodity Index 3 month ForwardSM are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes, UBS, UBS Securities or any of their respective subsidiaries or affiliates, and none of Dow Jones, CME Indexes, UBS, UBS Securities, or any of their respective subsidiaries or affiliates, makes any representation regarding the advisability of investing in such product.
AMCU agrees to take an offer to workers, possibly ending the 21-week strike
The strike premium on the platinum price appears to have been removed following news of a possible agreement between the three biggest producers and the AMCU. Platinum is now trading below the levels seen before the strikes began in January, indicating markets have overreacted to the news. We remain bullish both platinum and palladium and believe that prices will recover in the coming months.
Platinum and palladium prices dropped sharply as Amplats, Implats and Lonmin announced an “in principle” agreement has been reached with the Association of Mineworkers and Construction Union (AMCU).
This could bring to an end the 21-week long strike that has seen the loss of over 1moz of platinum and over 500koz of palladium, according to our calculations. Representatives of the three biggest producers and of the AMCU will meet today to seal the deal.
We believe platinum will be the most hit by the news of a resolutions as over 70% of production of the metal is concentrated in South Africa. However, given the minimal strike premium priced into platinum prices now and a pick-up in global demand, we believe the correction will be short-lived.
While a strike resolution will reduce immediate uncertainty and put downward pressure on prices, it will be some time before most mines are brought back to working condition, with some mines at risk of permanent closure or permanent reduction of production capacity.
In addition, after a sharp run-down in PGM inventories by both producers and consumers, inventories will have to be re-built.
With the US economy picking up, China reflating and Europe and Japan demand stabilising, platinum and palladium demand is expected to quite substantially outstrip supply in 2014 and into 2015.
Johnson Matthey forecasts platinum and palladium to see deficits equivalent to 14% and 15% of global demand in 2014.
On our estimates, the metals are trading below their cash operating costs. As we write, platinum is currently trading around 20% below the estimated cash operating costs per platinum equivalent ounce. Therefore, in our view, the current price drop may represent an opportunity for medium to long-term investors to accumulate the metals at attractive prices.
We continue to target platinum and palladium prices to rise to US$ 858/oz and US$1,550 respectively in the next six months.
For more information contact:
ETF Securities Research team
ETF Securities (UK) Limited
T +44 (0) 207 448 4336
E info@etfsecurities.com
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 (the ”FCA”).
When being made within Switzerland, this communication is for the exclusive use by ”Qualified Investors” (within the meaning of Article 10 of Section 3 of the Swiss Collective Investment Schemes Act (”CISA”)) and its circulation among the public is prohibited.
The information contained in this communication is for your general information only and is neither an offer for sale nor a solicitation of an offer to buy securities. This communication should not be used as the basis for any investment decision. Historical performance is not an indication of future performance and any investments may go down in value.
This document is not, and under no circumstances is to be construed as, an advertisement or any other step in furtherance of a public offering of shares or securities in the United States or any province or territory thereof. Neither this document nor any copy hereof should be taken, transmitted or distributed (directly or indirectly) into the United States.
This communication may contain independent market commentary prepared by ETFS UK based on publicly available information. Although ETFS UK endeavours to ensure the accuracy of the content in this communication, ETFS UK does not warrant or guarantee its accuracy or correctness. Any third party data providers used to source the information in this communication make no warranties or representation of any kind relating to such data. Where ETFS UK has expressed its own opinions related to product or market activity, these views may change. Neither ETFS UK, nor any affiliate, nor any of their respective, officers, directors, partners, or employees accepts any liability whatsoever for any direct or consequential loss arising from any use of this publication or its contents.
ETFS UK is required by the FCA to clarify that it is not acting for you in any way in relation to the investment or investment activity to which this communication relates. In particular, ETFS UK will not provide any investment services to you and or advise you on the merits of, or make any recommendation to you in relation to, the terms of any transaction. No representative of ETFS UK is authorised to behave in any way which would lead you to believe otherwise. ETFS UK is not, therefore, responsible for providing you with the protections afforded to its clients and you should seek your own independent legal, investment and tax or other advice as you see fit.
Vem handlar med ETFer? TD Ameritrade som är en stor amerikansk nätmäklare, snarlik Avanza och Nordnet, släppte nyligen en grafisk illustration gällande ETF användandet för deras omkring sex miljoner amerikanska kunder. För en av de grafiska illustrationerna, se bild nedan. Klicka på bilden om ni vill se en större version. Bilden är väldigt talande. Den övergripande slutsatsen från TD Ameritrade är att ETF användandet är väldigt utbrett bland deras kundbas och att användandet har ökat signifikant bland framförallt privata investerare.
I bilden ovan går det tydligt att utläsa att yngre investerare har tagit till sig ETF:er i en större utsträckning än äldre investerare. Det finns ingen bra förklaring till varför det är så. En billig, börshandlad och i de flesta fall väldiversifierad produkt passar de flesta gammal som ung. Vissa bedömare tror dock att denna skevhet beror på att den yngre generationen vuxit upp under flera finansiella kriser och att detta färgat deras sparbeteende. Den äldre generationen i sin tur har framförallt vuxit upp under en period där aktiesparande varit det ”normala”.
För samtliga tre grafiska illustrationer, se bifogad länk – Infographics.pdf
Om TD Ameritrade
I nästan 40 år har TD Ameritrade gjort det möjligt för kunder genom att hjälpa dem att ta kontroll över sina ekonomiska liv.
När SEC, Securities and Exchange Commission, bort bruket av fasta courtage på 1 maj, 1975, var det ingen av de stora mäklarfirmor på den tiden som trodde att någon skulle komma att erbjuda kunderna rabatterad courtage. En handfull små företag, bland annat First Omaha Securities, Inc., såg en unik möjlighet.
First Securities Omaha utvecklades till TD Ameritrade och i över 35 år har varit en pionjär i en bransch som fortsätter att innovera nya sätt som gör Wall Street mer tillgängligt för den enskilde investeraren.
På 1980-talet och 1990-talet, pionjärer TD Ameritrade ett antal ”firsts,” hävstångs teknik för att göra investeringar enklare, snabbare och effektivare. År 1988 var först med att erbjuda tonvalstelefon för handel med aktier.
1995 förvärvades K. Aufhäuser & Co, som var förs ut med att erbjuda online handel med aktier 1994. Efter sin börsintroduktion (IPO) i mars 1997 kombinerade företaget sina olika mäklarheter i en enhet Ameritrade , Inc., och lanserade sin första nationella reklamkampanj, komplett med en prisfilosofi som fortsätter i dag.
