ASX Investment Products Monthly Update-January 2019
February 11, 2019--January 2019 saw an increase in Assets Under Management in all Investment Product categories. Assets under Management in ETPs (up 4.3%), mFunds (up 2.9%), LICs (up 2.9%), AREITs (up 5.3%) and Infrastructure Funds (up 3.9%) on a month on month basis.
Total Assets under Management of all Investment Products increased by 4.5% over the month of January 2019, from $276.67bn to $288.99bn.
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Source: ASX
RBA to cut rates
February 11, 2019--Week in Review
Global stocks were largely flat last week, with the main "new news" being concerns over progress in US-China trade talks-following President Trump's revelation that the two leaders won't meet again in person ahead of the March 2 "deadline" for a deal to be done or new tariffs would be imposed.
The US earnings season continued to progress well enough, though there's increasing focus on a weakening earnings outlook for 2019. Elsewhere, Germany reported another month of weak industrial production, adding to the pall over the European economic outlook.
In Australia, the major event was the shift to a neutral policy bias from the RBA, following global growth concerns and a run of weaker local economic data (such as building approvals and business confidence). For the record, I also shifted my call from the RBA being on hold "for the foreseeable future" to an expectation of two rates cuts by early 2020-with the first potentially as early as August.
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Source: BetaShares
China GDP growth tipped to slow to 6% in Q1: state-run paper
February 10, 2019---China's economic growth could slow to the weakest level on record in the first quarter, according to a state-run newspaper.
"It is not difficult to determine that this year our country's economy will continue to bear pressure, with a conservative estimate for full-year cumulative growth of about 6.3 per cent and the possibility that growth for the present quarter could reach 6 per cent," according to a front-page commentary on Monday in the Economic Information Daily, a newspaper run by China's official Xinhua news agency.
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Source: FT.com
BetaShares Market Trends: February 2019
February 5, 2019--Major Asset Classes-global equities storm back
Global equities returned a strong 7.3% in local currency terms during January, unwinding their 7.2% slump in December. The return in $A terms, however, was a more muted 4.5% reflecting a rebound in the Australian dollar over the month.
Several factors supported the equity rebound, though the most important was likely an easing in US interest rate fears as the Federal Reserve turned more "dovish". Indeed, after having raised rates four times in 2018, the Fed now says it can be more "patient" in raising rates further, and the market has largely priced out the risk of further policy tightening this year.
Other supportive factors were ongoing good economic growth indicators in the US economy, a solid start to the Q4 US earnings reporting season and encouraging signs that the US and China will conclude some form of a trade deal in coming months.
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Source: BetaShares
Promising start
February 4, 2019--Week in Review
Global equities posted further gains last week on the back of very dovish Fed commentary, capping off what's been a promising start to the year so far. Indeed, global equities returned 7.3% in local currency terms in January after posting a loss of 7.2% in December.
Australian equities returned 3.9% with solid gains across most sectors apart from financials, with the latter still being weighed down by slowing credit growth and fears of what may emanate from today's release of the Hayne Royal Commission findings.
More broadly global equities are benefiting from several positive developments since the dark days of late last year. For starters, the US Fed has been obviously shell shocked by the market rout last year (partly caused by it's own clumsy statements) and appears likely to hold rates steady at least for a few more months. Australian equities returned 3.9% with solid gains across most sectors apart from financials, with the latter still being weighed down by slowing credit growth and fears of what may emanate from today's release of the Hayne Royal Commission findings.
More broadly global equities are benefiting from several positive developments since the dark days of late last year. For starters, the US Fed has been obviously shell shocked by the market rout last year (partly caused by it's own clumsy statements) and appears likely to hold rates steady at least for a few more months.
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Source: BetaShares
China mulls combination of QFII, RQFII schemes to boost foreign investment
January 31, 2019--China's securities watchdog unveiled draft rules that will combine two existing schemes for foreign investors and expand the scope of investments.
The China Securities Regulatory Commission (CSRC) said in a statement that it has begun to consult public opinion on the new rules that will combine the Qualified Foreign Institutional Investors (QFII) program and the RMB Qualified Foreign Institutional Investors (RQFII) program.
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Source: xinhuanet.com
BetaShares Australian ETF Review-2018 in Review
January 31, 2019--Shaken, not stirred!
Despite dramatic sharemarket volatility throughout 2018, the Global ETF industry recorded significant growth over the year, reaching its 2nd highest level of net inflows ($US516B) and maintaining the positive growth trend.
The Australian ETF industry ended the year with funds under management (FuM) of ˜$41B-just shy of the record $42B, achieved in September. Read on for the key stats and figures for the year in ETFs.
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Source: BetaShares
In Asia, a More Electronified Market Feels the Impact of MiFID II
January 31, 2019--Executive Summary:
Although a tumultuous 2018 ended up being an overall positive year for most leading Asian equity brokers, owing to an active first half, the industry enters 2019 facing profound questions about how changes in regulations and market structure will affect the traditional institutional brokerage business model.
Methodology
Between July and September 2018, Greenwich Associates conducted interviews with 231 Asian equity fund managers and analysts and 104 buy-side trading desks at institutions based in Asia. Interview topics included overall market trends, compensation and broker relationships.
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Source: Greenwich Associates
ETFGI reports that assets invested in ETFs and ETPs listed in Asia Pacific (ex-Japan) reached a record high of US$197 billion at the end of December 2018
January 30, 2019--ETFGI, a leading independent research and consultancy firm on trends in the Asia Pacific (ex-Japan) ETF/ETP ecosystem, reported today that that assets invested in ETFs and ETPs listed In Asia Pacific (ex-Japan) reached a record high of US$197 billion at the end of December 2018, surpassing the previous record set at the end of the previous month, according to ETFGI's December 2018 Asia Pacific (ex-Japan) ETF and ETP industry insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Assets invested in ETFs/ETPs listed In Asia Pacific (ex-Japan) increased by 2.9% during December 2018 to reach a record high of $197 Bn, beating the prior record of $191 Bn set at the end of November 2018.
Year-to-date, assets have increased by 15.6% from $170 Bn at the end of 2017.
In December 2018, ETFs/ETPs listed In Asia Pacific (ex-Japan) saw net inflows of $9.82 Bn.
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Source: ETFGI
ETFGI reports that ETFs and ETPs listed in Japan gathered net inflows of US$9.00 billion during December 2018
January 30, 2019--ETFGI, a leading independent research and consultancy firm on trends in the Japanese ETF/ETP ecosystem, reported today that that ETFs and ETPs listed in Japan gathered net new assets of US$9.00 billion during December 2018, marking 14 consecutive months of net inflows.
Year-to-date, for the whole of 2018, ETFs/ETPs listed in Japan have seen record net inflows of US$72.4 billion, surpassing the previous record for annual net inflows set in 2017 with US$52.6 billion, according to ETFGI's December 2018 Japan ETF and ETP industry insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
ETFs and ETPs listed in Japan gathered net new assets of $9.00 Bn during December 2018, marking 14 consecutive months of net inflows.
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Source: ETFGI
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