SET to launch "SETTHSI Index" and "SETCLMV Index" on July 2
June 15, 2018--The Stock Exchange of Thailand (SET) today announced
the upcoming launch of the two new indices named "SET THSI Index (SETTHSI)"
consisting of stocks, highly perform on environmental, social and governance
(ESG) perspective; and "SET CLMV Exposure Index (SETCLMV)" which comprises of
Thai stocks, generating revenues from Cambodia, Laos, Myanmar and Vietnam
(CLMV), allows investors to get benefit from these growing economies.
SET Senior Executive Vice President Rinjai Chakornpipat said "the launching of
these two new indices will support investors to get benefit from the CLMV
economies and sustainable stocks.
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Source: Stock Exchange of Thailand (SET)
China's retreating A-shares raise trading suspension fears
June 15, 2018--The recent retreat in Shanghai share prices, coupled with evidence of a slowdown in China's economic growth, are raising a pressing question for fund managers.
How can international investors insulate themselves against the tendency of A-share companies to suspend their shares when the going gets tough?
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Source: FT.com
Vietnam's economic prospects improve further, with GDP projected to expand by 6.8 percent in 2018
Recent growth uptick driven by favorable domestic and external conditions may gradually moderate.
June 14, 2018--Vietnam's economic growth momentum remains robust and is accompanied by broad macroeconomic stability.
Recent growth uptick driven by favorable domestic and external conditions may gradually moderate.
According to Taking Stock, the World Bank's latest economic update for Vietnam, recent growth was driven by a cyclical increase in global demand as well as a recovery in investment from FDI and private sector, and an ongoing shift of labor away from agriculture into more productive manufacturing and service sectors.
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Source: World Bank
World's largest pension fund overhauls fees for asset managers
June 14, 2018--Japan's $1.5tn state pension fund no longer wants to pay 'considerable sums regardless of investment performance'
The world's largest investor, Japan's sprawling Government Pension Investment Fund, has set out the details of its radical new fee structure for external fund managers-after concluding their performance "leaves much to be desired".
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Source: fnlondon.com
China's economy cools in May as Beijing's efforts to reduce debt levels start to bite
June 14, 2018--Fixed-asset investment in first five months grows at slowest rate since records began in 1998; monthly retail sales growth slowest in 15 years
China's US$12 trillion economy suffered a downturn in May as retail sales expanded by their slowest rate in 15 years and fixed-asset investment growth in the first five months was the slowest on record, according to official figures released on Thursday.
Retail sales, a key measure of consumer spending, rose by just 8.5 per cent year on year in May, its slowest rate since June 2003. Car sales in the month fell by 1 per cent from a year earlier, while industrial production, another pillar of growth, also lost steam, the National Bureau of Statistics said.
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Source: scmp.com
BetaShares Australian ETF Review-May 2018
June 13, 2018--Industry crosses $38B mark
The Australian ETF industry continued to grow last month, reaching a record high of $38.4B. The Industry grew 1.4% in the month ($534m), the vast majority (˜90%) of which came from new inflows, rather than asset appreciation.
Read on for details of the month in ETFs.
Market cap
ASX Exchange Traded Funds Market Cap: $$38.4B-New Record High
Market cap growth for month: +1.4%, $534m
Market cap growth for the last 12 months: 32%, +$9.4B
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Source: BetaShares
CRED: How to have your diversification and income too!
June 13, 2018--Investors fearful of major equity market declines often decide to include in their portfolios relatively "safe" assets such as cash and bonds so as to limit their downside. The problem with this approach is that seeking safety can be costly in terms of forgone returns, especially given today's generally low level of interest rates.
Investing in long-dated, investment grade corporate bonds offers a potentially attractive way for investors to obtain both decent regular income returns while also seeking to limit losses in major "risk-off" periods.
Fixed-Rates Bonds-diversification, but at a cost
Fixed-rate bonds can often provide a handy source of diversification within portfolios with heavy exposure to equities. As evident in the chart below, this reflects the fact that both interest rates and equity market performance tends to follow the economic cycle. When economic conditions are weak, equities returns tend to decline due to reduced prospects for corporate earnings.
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Source: BetaShares
IMF Working Papers-Pushed Past the Limit? How Japanese Banks Reacted to Negative Interest Rates
June 13, 2018--Summary:
In this paper, we investigate how negative interest rate policy (NIRP) introduced in January 2016 by the Bank of Japan (BoJ) affected Japanese banks' lending and risk taking behavior. The BoJ's announcement was an unexpected surprise to the market and was followed by a sharp drop in equity prices of Japanese financial firms.
We exploit the cross-sectional variation in the change of share prices on the day of the announcement to measure banks' differential exposure to NIRP. We show that more exposed banks increased their credit and took on more risk compared to banks that were less exposed to negative rates.
view the IMF Working Papers-Pushed Past the Limit? How Japanese Banks Reacted to Negative Interest Rates
Source: IMF
18-171MR ASIC implements financial benchmark regulatory regime
June 12, 2018--ASIC has today finalised and published benchmarks rules, a significant benchmarks declaration, and a regulatory guide in a further series of measures towards establishing a comprehensive regulatory regime for financial benchmarks.
This follows the establishment of a robust licensing regime for financial benchmarks through the recent passage of legislation through the Parliament.
These actions by ASIC include:
declaring certain financial benchmarks to be significant
writing rules to support the implementation of a licensing regime for the administrators of significant benchmarks, and...
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Source: ASIC
Copper Basin Capital Launches MSCI All Country Asia Index Fund
June 12, 2018--Singapore-based investment fund manager, Copper Basin Capital Pte. Ltd., has launched an investment platform that allows investors to invest in one, some or all the 11 GICS(R) sectors comprising the MSCI All Country Asia Index (MSCI AC Asia Index).
The MSCI AC Asia Index, whose components and weights are selected and calculated by MSCI, Inc., is a well-known benchmark index used by sovereign wealth funds, pension plans, foundations, and other global institutional investors as a standard to measure investment manager performance for investments in Asia. The index tracks the performance of 12 Asian markets, namely, China, Hong Kong, India, Indonesia, Japan, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
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Source: Copper Basin Capital Pte. Ltd.
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