Retail Investing Surge Cushions Economic Downturn and Calls for Adequate Reforms
June 1, 2022--Over the last two years, health-related restrictions and economic shutdowns had unforeseen effects on European capital markets. An increase in disposable income available for EU households to invest, and at least four and a half million[1] previously inactive EU savers now investing in the real economy and trading in financial instruments, has created a new generation of "retail" investors in the EU.
What's more, is that these developments came on the back of increased investor activism (and interest in shareholder engagement) and in the wake of disruptive FinTech business models that make investing a much more attractive and accessible proposition for EU households, bringing them closer to capital markets.
view the Better Finance The New Investing Environment for Retail Investors|Expectations and Challenges Ahead report view more ESMA reports on supervision of costs and fees in investment funds view more Three headaches for the European Central Bank view more Basel Committee finalises principles on climate-related financial risks, progresses work on specifying cryptoassets' prudential treatment and agrees on way forward for the G-SIB assessment methodology review Climate-related financial risks
The Committee agreed to a finalised set of principles for the effective management and supervision of climate-related financial risks. This follows the consultation by the Committee on these principles last year. The principles, which will be published in the coming weeks, seek to promote a principles-based approach to improving risk management and supervisory practices to mitigate climate-related financial risks. view more New bond ETFs from iShares on Xetra: corporate bonds in euro with investment grade rating and different maturities
The iShares € Corp Bond SRI 0-3yr ESG UCITS ETF tracks the performance of investment grade fixed-income corporate bonds denominated in Euro. Bonds with a remaining time to maturity of no longer than three years are included and must have a minimum amount outstanding of €300 million. The ETF follows a best-in-class approach to sustainable investing and considers the best issuers based on the ESG rating from the respective sector. Companies from controversial business sectors such as alcohol, nuclear power, military weapons, or thermal coal are excluded. view more ECB-Monetary developments in the euro area: April 2022
view more KraneShares Lists Electric Vehicles & Future Mobility ESG Screened UCITS ETF (Ticker: KARS) on the London Stock Exchange
"KARS is focused on the fast-growing electric vehicle industry and the expanding list of technologies shaping the future of transportation and mobility," said Anthony Sassine, CFA, Senior Investment Strategist at KraneShares. view more UK regulator suggests simpler listing rule for London to attract more startups view more Review of the MiFID II framework on best execution reports by investment firms view New ETFs from J.P. Morgan on Xetra: factor-based high-yield corporate bonds and active investment strategy in Japanese companies
The JPM Japan Research Enhanced Index Equity (ESG) UCITS ETF-EUR Hedged (acc) employs an active investment strategy to outperform the benchmark, MSCI Japan Index. The portfolio is composed of companies that are domiciled in Japan or carry out most of their business activities there. The focus is on companies with positive environmental or social characteristics that apply good corporate governance practices. Companies with significant business activities in thermal coal, wafers or tobacco are excluded. view more If you are looking for a particuliar article and can not find it, please feel free to contact us
Source: betterfinance.eu
May 31, 2022--The European Securities and Markets Authority (ESMA), the EU securities markets regulator, today publishes a report on the Common Supervisory Action (CSA) on costs and fees for investment funds, that was carried out with National Competent Authorities (NCAs) during 2021.
ESMA highlights, in the Report, the importance of supervision in ensuring investors are not charged with undue costs, considering its high impact on investors' returns.
Source: ESMA
May 31, 2022--Even though inflation in the euro area is lower than in the US, three issues make it a lot more difficult for the ECB to control inflation and preserve financial stability. Once again, the limits of EMU architecture are visible and will require a rethink.
In its latest forecast published on 16 May, the European Commission expects inflation in the euro area to be 6.1% and growth 2.7% in 2022.
The last forecasts published by the ECB on the 10 March, predicted inflation and growth at 5.1% and 3.7% respectively. These are big revisions for such a short time span and they of course reflect the implications of the war in Ukraine.
Source: bruegel.org
May 31, 2022--Basel Committee finalises principles for effective management and supervision of climate-related financial risks.
Progresses work on specifying cryptoasset prudential treatment and issuing a second consultation paper.
Finalises review of the treatment of cross-border exposures within the European Banking Union on the G-SIB methodology.
The Basel Committee met on 27 May and approved a finalised set of principles for the effective management and supervision of climate-related financial risks. It also progressed its work on specifying a prudential treatment of cryptoassets and issuing a second consultation paper, and agreed on a way forward to reflect developments in the European banking union (EBU) on the assessment methodology for global systemically important banks (G-SIBs). In addition, the Committee is continuing to assess risks to and vulnerabilities of the global banking system, including those ensuing from the conflict in Ukraine.
Source: bis.org
May 27, 2022--Two new exchange-traded funds issued by iShares are tradable on Xetra and via Börse Frankfurt since Friday.
The iShares € Corp Bond ex-Financials UCITS ETF gives investors access to fixed-income euro-denominated corporate bonds with investment grade rating. Bonds are issued by industrial and utility companies but excludes financial issuers.
The securities have a remaining time to maturity of at least one year and must have a minimum amount outstanding of €300 million.
Source: Xetra
May 27, 2022--Annual growth rate of broad monetary aggregate M3 decreased to 6.0% in April 2022 from 6.3% in March
Annual growth rate of narrower monetary aggregate M1, comprising currency in circulation and overnight deposits, decreased to 8.2% in April from 8.8% in March
Annual growth rate of adjusted loans to households stood at 4.5% in April, unchanged from previous month
Annual growth rate of adjusted loans to non-financial corporations increased to 5.2% in April from 4.1% in March
Source: ECB
May 26, 2022--Krane Funds Advisors, LLC, ("KraneShares"), an asset management firm known for its global exchange-traded funds (ETFs) and innovative investment strategies, today announced the launch of the KraneShares Electric Vehicles & Future Mobility ESG Screened UCITS ETF (Ticker: KARS).
KARS tracks the Bloomberg Electric Vehicles ESG Screened Index, which is constructed through a rigorous basket identification process powered by Bloomberg Intelligence (BI), which includes over 350 research professionals, as well as research from Bloomberg New Energy Finance (BNEF).
Source: kraneshares.eu
May 26, 2022--BRITAIN'S twin-track company listing regime could be simplified into a single entry point to the London Stock Exchange to attract more startups, the Financial Conduct Authority (FCA) said on Thursday (May 26).
Britain wants to bolster London's attractiveness as a global location for listings as it continues to trail New York in bringing tech companies to the market, and faces added competition from Amsterdam since Brexit.
Source:businesstimes.com.sg
May 24, 2022--View the Review of the MiFID II framework on best execution reports by investment firms
Source: ESMA
May 24, 2022--Since Tuesday, two new exchange-traded funds issued by J.P. Morgan Asset Management are tradable on Xetra and via Börse Frankfurt.
The JPM Global High Yield Corporate Bond Multi-Factor UCITS ETF-EUR Hedged (dist) offers investors the opportunity to participate in the performance of high-yield corporate bonds with a rating below investment grade.
The ETF tracks the JP Morgan AM Global High Yield Multi-Factor Index. It is designed to track the performance of global corporate bonds which display certain factor characteristics more strongly when compared to their peer group. The strategic multi-factor approach determines portfolio composition based on three equally weighted factors: value, momentum, and quality.
Source: Deutsche Börse