Global ETF News Older than One Year
Solactive releases innovative Global Equity Index with Research Company CIMalgo AB
June 5, 2019--Solactive is pleased to announce the release of its latest innovation in complex Index development. The Solactive CIMalgo Wedge R100 Index uses sophisticated algorithms that reduce the portfolio's beta and volatility while keeping exposure to the global equity market.
After the release of a series of thematic indices with various asset managers, Frankfurt's multi-asset index shop, Solactive, releases a novum in complex indexing: The Solactive CIMalgo Wedge R100 Index contains a scientific approach that intends to track the price movements of a portfolio of 100 equally weighted stocks, selected from a universe of the 2000 largest corporations globally.
Source: Solactive AG
World Gold Council Gold-backed ETFs experienced small outflows in May
June 5, 2019--Holdings in global gold-backed ETFs and similar products fell marginally in May by 2.2 tonnes (t) to 2,421t, equivalent to US$141mn in outflows as consistent European fund growth was offset by outflows in North America-early in the month-and in Asia. Global assets under management (AUM) in US dollars rose 1% to US$101bn as the price of gold rallied 1.7% during May
Year to date, global gold-backed ETFs have lost 0.5% in assets (19t, US$535mn), mostly due to heavy outflows in February, April and early May. However, higher uncertainty and market volatility have supported flight-to-quality flows into gold-backed ETFs in recent weeks.
Source: World Gold Council
Tradeweb Reports May 2019 Trade Volume
June 5, 2019--Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today reported average daily volume (ADV) of $741.8 billion (bn) in aggregate for the month of May 2019.
Activity on Tradeweb trading platforms in May included:
ADV of $83.6 bn in U.S. government bonds and $21.1 bn in European government bonds
$157.7 bn ADV in mortgages
$228.1 bn ADV in rates derivatives
ADV of $2.7 bn in U.S. credit and $1.2 bn in European credit
Source: TradeWeb
Global Growth to Weaken to 2.6% in 2019, Substantial Risks Seen
June 4, 2019--Emerging, developing economies' growth to pick up to 4.6% in 2020 from 4% in 2019; expansion vulnerable to trade, financial disruptions
Global economic growth is forecast to ease to a weaker-than-expected 2.6% in 2019 before inching up to 2.7% in 2020.
Growth in emerging market and developing economies is expected to stabilize next year as some countries move past periods of financial strain, but economic momentum remains weak.
Emerging and developing economy growth is constrained by sluggish investment, and risks are tilted to the downside. These risks include rising trade barriers, renewed financial stress, and sharper-than-expected slowdowns in several major economies, the World Bank says in its June 2019 Global Economic Prospects: Heightened Tensions, Subdued Investment. Structural problems that misallocate or discourage investment also weigh on the outlook.
view the World Bank report-Global Economic Prospects Heightened Tensions, Subdued Investment
Source: World Bank
The Global Economy: Heightened Tensions, Subdued Growth
June 4, 2019--The global economy has slowed to its lowest pace in three years. It is on track to stabilize, but its momentum is fragile and subject to substantial risks.
International trade and investment have been weaker than expected at the start of the year, and economic activity in major advanced economies, particularly the Euro Area, and some large emerging market and developing economies has been softer than previously anticipated.
Growth in the emerging and developing world is expected to pick up next year as the turbulence and uncertainty that afflicted a number of countries late last year and this year recedes, the World Bank's June 2019 Global Economic Prospects: Heightened Tensions, Subdued Investment reports. view more
Source: World Bank
Global Economic Prospects: Europe and Central Asia
April 4, 2019--Recent Developments
Growth in Europe and Central Asia is estimated to have slowed to 1.6% in 2019, a four-year low, partly reflecting a sharp weakening of activity in Turkey. Trade continues to weaken across the region, as goods trade volumes have slowed in parallel with sluggish activity in the Euro Area, the region's largest export destination.
Monetary policy tightening has paused in the region and fiscal policy has loosened in 2019. Inflation has been trending up in some of the larger economies in the region since the start of the year, notably in Hungary, Poland, and Russia, driven in part by rising oil prices.
Source: World Bank
IOSCO examines regulatory-driven market fragmentation and considers how to enhance cross-border cooperation
June 4, 2019--The Board of the International Organization of Securities Commissions today published a report that examines instances of regulatory-driven fragmentation in wholesale securities and derivatives markets and considers what actions regulators can take to minimize its adverse effects.
The report, titled Market Fragmentation and Cross-border Regulation, focuses on market fragmentation that arises as an unintended consequence of financial regulation. It provides examples of market fragmentation that IOSCO members consider to be significant and potentially harmful to the oversight and supervision of financial markets.
view the IOSCO Market Fragmentation & Cross-border Regulation report
Source: IOSCO
World's biggest companies face $1 trillion in climate change risks
June 4, 2019--15 biggest global companies report almost US$1 trillion at risk from climate impacts, with many likely to hit within the next 5 years
Companies report potential US$250 billion in losses due to the write-offs of assets
Climate business opportunities calculated at US$2.1 trillion, nearly all of which are highly likely or virtually certain
Potential value of sustainable business opportunities almost 7x the cost of realizing them (US$311bn in costs, US$2.1 trillion in opportunities)
Financial companies forecast US$1.2 trillion in potential revenue from low emissions products & services
Financial services industry represents almost 80% of the total potential financial impacts in the sample set
Fossil fuels companies report more opportunities than risks from the low-carbon transition, raising questions about what they are reporting.
Source: CDP Worldwide
FSB Report on Market Fragmentation
June 4, 2019--This report, which was delivered to G20 Finance Ministers and Central Bank Governors ahead of their meetings in Fukuoka on 8-9 June, sets out the conclusions from the FSB's work on market fragmentation and identifies several areas for further work to address it.
The report looks at some examples of financial activities where supervisory practices and regulatory policies may give rise to market fragmentation.
It discusses potential trade-offs that authorities have considered between the benefits of increased cross-border activity and a need to tailor domestic regulatory frameworks to local conditions and mandates. The areas the report examines are the trading and clearing of over-the-counter (OTC) derivatives across borders; banks' cross-border management of capital and liquidity; and the sharing of data and other information internationally.
view the FSB Report on Market Fragmentation
Source: FSB
Regulating the Growth of ESG Investing
A look at the landscape of ESG regulation around the world, across three main areas
June 3, 2019--The growth of environmental, social, and governance investing has been astronomical over the past few years. Our latest report, "The Evolving Approaches to Regulating ESG Investing," shows that investments in European and U.S. ESG-oriented funds increased 44% between the end of 2014 and the end of 2018, reaching a total of EUR 761 billion (further detailed in the Morningstar Sustainability Atlas and U.S. Landscape Report).
This growth naturally leads policymakers to examine a spectrum of ESG regulation and policy interventions to facilitate sustainable investing.
In this report, we explore the scope of these interventions across three broad areas and how regulators' ambitions vary by location.
ESG regulation in investment management and advice
European policymakers have been at the vanguard of this effort with the European Commission's Sustainable Finance Package of Measures, the multiple elements of which continue to move through the legislative process and are expected to be adopted this summer.view more
Source: Morningstar
