BNP Paribas Asset Management survey shows Covid-19 prompts rise in social considerations within investment decision-making
July 13, 2020--BNP Paribas Asset Management ('BNPP AM') reveals key findings of its study on the importance of ESG criteria for investors in the Covid-19 environment:
ESG has become an even greater focus for 23% of respondents: 81% of respondents already employ ESG in all or part of their portfolios and a further 16% plan to do so
Clear emergence of the importance of social considerations highlighted by an increase of 20 percentage points since the onset of Covid-19
79% of respondents cite social considerations as having a positive impact on long-term investment performance and risk management However, there are significant barriers to investing with consideration to social factors: 42% of respondents highlight lack of established standard metrics
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Source: BNP Paribas Asset Management i
UK government bond yields hit record lows as investor nerves linger
July 10, 2020--Investors seek safety in government bonds as short-dated gilt yields hit new lows
Yieldson short-dated UK government debt yesterday hit record lows after bond markets wobbled on worries over accelerating Covid-19 case.
Investors sought safety in government bonds worldwide, as investors fret over the rise in coronavirus cases in the US, pushing short-dated gilt yields deeper into negative territory. The two-year and five-year gilt yields hit all-time lows of minus 0.113pc and minus 0.08pc, respectively.
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Source: telegraph.co.uk
ECB-Euro area securities issues statistics: May 2020
July 10, 2020--The annual growth rate of the outstanding amount of debt securities issued by euro area residents increased from 4.4% in April 2020 to 5.8% in May.
For the outstanding amount of listed shares issued by euro area residents, the annual rate of change was 0.0% in May 2020, the same as in April.
Debt securities
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Source: ECB
New Van Eck ETF on Xetra: Investment in companies with attractive fair value and competitive advantages
July 9, 2020--Since Thursday, a new exchange traded fund from VanEck Vectors has been tradable on Xetra and Börse Frankfurt.
With VanEck Vectors Morningstar Global Wide Moat UCITS ETF investors can invest in a selection of companies worldwide.
From the universe of the Morningstar Global Markets Index, a maximum of 100 companies are filtered out, which, according to the index provider, have an attractive ratio of fair value to current price and have sustainable competitive advantages. Competitive advantages in this context can be intangible assets, cost advantages, switching costs, network effects or efficient scaling.
Any dividends accruing are reinvested. The annual costs amount to 0.52 percent.
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Source: Deutsche Börse
The Swiss Stock Exchange welcomes Rize ETF
July 9, 2020--As of today, two more thematic ETFs with growth potential can be traded on the Swiss Stock Exchange: medical cannabis and cyber security.
The newly tradeable ETFs from Rize ETF are focusing on thematic market trends with growth stories: medical cannabis and cyber security.
Rize ETF developed both ETFs in cooperation with the index provider Foxberry and the respective thematic experts New Frontier Data and Tematica Research. These products offer investors additional opportunities to diversify their portfolios and dip into the ever-thriving segment of equity-themed ETFs available at SIX. Liquidity for the 2 ETFs is provided by Société G énérale.
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Source: SIX Swiss Exchange Ltd
Unscheduled change in SDAX
July 9, 2020--Rhön-Klinikum AG to be deleted from index, Tele Columbus AG to be addedOn Thursday, Qontigo's global index provider STOXX Ltd. announced an unscheduled change to the SDAX index.
Due to the takeover of Rhön-Klinikum AG (DE0007042301) by Asklepios Kliniken GmbH & Co. KGaA the free float of Rhön-Klinikum AG falls below 10 percent. According to the Guide to the DAX Equity Indices, section 5.1.5. Adjustments in the Case of Mergers and Acquisitions, Rhön-Klinikum AG shares will be deleted from SDAX. They will be replaced by Tele Columbus AG (DE000TCAG172).
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Source: Deutsche Börse
VanEck lists new Global Wide Moat ETF on London Stock Exchange
July 9, 2020--With the VanEck Vectors Morningstar Global Wide Moat UCITS ETF, investors can make targeted investments in global companies with a long-term competitive advantage. The cost-effective ETF provides an intelligent smart beta alternative for investments with a global reach
Asset manager VanEck, today announces the listing of the VanEck Vector Morningstar Global Wide Moat UCITS ETF(GOAT) on the London Stock Exchange. The launch adds a new equity ETF to VanEck's product portfolio. With the VanEck Vectors Morningstar Global Wide Moat UCITS ETF(GOAT), investors can make targeted investments in global companies with a long-term competitive advantageover their peers.
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Source: VanEck
New ETF to target US company bond defaults launched by Tabula Investment Management
July 8, 2020--"This is a very opportune time to launch an ETF that enables investors to hedge against the North American high yield corporate credit market"
A new exchange-traded fund that gives investors an opportunity to short US bonds has started trading on the London Stock Exchange.
Tabula Investment Management Limited said the North American CDX High Yield Credit Short UCITS ETF (TABS) is the only ETF of its type listed in Europe.
TABS gives investors exposure to the CDX North American High Yield Credit Short Index, which was developed by Tabula and IHS Markit and tracks around100 sub-investment grade entities that reflect the most widely traded segment of the North American High Yield credit market.
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Source: proactiveinvestors.co.uk
Greening the recovery by greening the fiscal consolidation
July 8, 2020-In the wake of COVID-19, some economic recovery policies will help green the economy- for example, energy renovation of buildings. But there are limits to the share of stimulus that can be explicitly green. The European Union should therefore also green the fiscal consolidation by setting out the path to much higher carbon prices than today.
This would guide investment and provide revenues to help the fiscal consolidation.
The issue
The long road to economic recovery from the COVID-19 shock is just beginning. European countries are considering how best to reboot their economies, with fiscal stimulus plans at the core of the consideration. Meanwhile, the European Commission has put forward its Next Generation EU plan. These stimulus packages will amount to several percentage points of GDP, and can therefore influence the future orientation of the economic system.
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Source: bruegel.org
ESMA updates its Q&As on MiFID II and MiFIR transparency-July 2020
July 8, 2020--The European Securities and Markets Authority (ESMA), the EU's securities markets regulator, updated today its Questions and Answers regarding transparency issues under the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).
The new Q&A document provides technical clarifications for the performance of the mandatory systematic internaliser (SI) test. The Q&A specifies how the number of transactions and the nominal amount traded of a derivative shall be allocated when a derivative contract changes over the observation period from one sub-class to another.
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Source: ESMA
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