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ETFGI reports Assets invested in Environmental, Social, and Governance (ESG) ETFs and ETPs listed globally reaches a record US$25 Bn at the end of January 2019
February 27, 2019--ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that Environmental, Social, and Governance (ESG) ETFs and ETPs listed globally gathered net inflows of US$730 million during January.
Total assets invested in ESG ETFs and ETPs increased by 9.97% from US$22.47 billion at the end of December, to a record US$24.71billion, according to ETFGI's January 2019 ETF and ETP ESG industry landscape insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Total Assets invested in ESG ETFs and ETPs listed globally rose 9.97% in January 2019, to reach record AuM of $25 Bn.
ESG ETFs and ETPs listed globally gathered $730 Mn in net new assets during January.
IMF Working Papers-Sovereigns and Financial Intermediaries Spillovers
February 27, 2019--Summary:
We examine the spillover effects between sovereigns and banks in a model with a heterogeneous banking system. An increase in sovereign's default risk affects financial intermediaries through two channels in this model. First, banks' funding costs might increase, inducing higher interest rates on loans and bonds and a cut back in these assets.
Second, financial regulator's risk-weighted asset framework would assign higher weights to lower quality assets, implying a portfolio rebalancing and more deleveraging. While capital adequacy requirements weaken the impact of shocks emerging from the real economy, they amplify the effect of shocks on banks’ balance sheets.
view the IMF Working Papers-Sovereigns and Financial Intermediaries Spillovers
OECD Risks rising in corporate debt market
February 25, 2019--Global outstanding debt in the form of corporate bonds issued by non-financial companies has hit record levels, reaching almost USD 13 trillion at the end of 2018. This is double the amount outstanding in real terms before the 2008 financial crisis, according to a new OECD paper.
Corporate Bond Markets in a Time of Unconventional Monetary Policy says that non-financial companies have dramatically increased their borrowing in the form of corporate bonds. Between 2008-2018, global corporate bond issuance averaged USD 1.7 trillion per year, compared to an annual average of USD 864 billion during the years leading up to the crisis.
< href="http://www.oecd.org/newsroom/risks-rising-in-corporate-debt-market.htm" TARGET="_blank">view more
view the OECD Corporate Bond Markets in a Time of Unconventional Monetary Policy paper
FTSE Russell and Nomura partner to launch first factor-based indexes linked to World Government Bond Index (WGBI)
February 22, 2019--New FTSE Nomura Carry and Roll Down (CaRD) World Government Bond Index Series launches
Meets investor demand for a fixed income "Carry" factor-based index for sovereign debt
FTSE Russell partners with Nomura Securities to develop series
Select Japanese pensions first to adopt series with over USD 1bn allocation into index-tracking funds
FTSE Russell, the global index, analytics and data provider, and Nomura Securities are launching a new index series: the FTSE Nomura Carry and Roll Down (CaRD) World Government Bond Index Series. This index series benchmarks the FTSE World Government Bond Index (WGBI) but is alternatively weighted to maximise the government bond portfolios which have the highest "carry and roll down".
Risk of 'Stranded Nations" Highlights Need for Sovereign Wealth Funds to Prepare for the Age of Green Energy
February 22, 2019--Despite having huge financial reserves, many fossil-fuel-rich economies are at risk of becoming "stranded nations" as efforts ramp up to avoid the worst effects of climate change and transition away from fossil fuels
With less than 0.2% of their $8 trillion assets invested in green or renewable energies, the world's sovereign wealth funds have a powerful role to play in helping prepare economies for the impending energy transition.
With the global energy shift accelerating quickly, the time for resource-dependent economies to act is now
Physically delivered cryptocurrency futures exchange debuts from CoinFLEX Faltering US economic data point to approaching slowdown
This week from the FTSE Russell Blog: Slowing global growth likely to test risk appetite
February 22, 2019--Fixed income cartography meets index methodology
Cartography, a fancy word to describe the design of maps, is similar to methodology, another fancy word that describes the design of indexes.
Slowing global growth likely to test risk appetite
Easing US financial conditions and progress on US-China trade talks have fueled a strong global equity rally but late-cycle macro challenges are likely to continue testing risk-on momentum.
Derivatives Trading Costs Could Double
February 22, 2019--Derivatives trading costs could nearly double if volatility increases, which requires firms to ensure they have an efficient hedging strategy in place.
High volatility could increase initial margin by up to 94% for some portfolios according to derivatives risk analytics provider OpenGamma. These portfolios calculate margin requirements using a standard portfolio analysis of risk (Span) methodology for futures and options.
ETFGI reports assets invested in actively managed ETFs and ETPs listed globally rises to US$112 billion, highest on record
February 21, 2019--ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that actively managed ETFs and ETPs gathered net inflows of US$1.48 billion in January.
Assets invested in actively managed ETFs/ETPs finished the month up 4.60%, from US$106.90 billion at the end of December, to US$111.83 billion, according to ETFGI's January 2019 Active ETF and ETP industry landscape insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Assets invested in Actively managed ETFs/ETPs reach US$111.83 Bn in January, the highest on record.
Global ETF Review 2018: Insights into a multi-trillion dollar industry
February 20, 2019--Quick read-Summary:
We launched the first edition of the quarterly BetaShares Global ETF Review-analysing the key trends & developments in the industry outside Australia.
The global ETF industry ended 2018 at US$4.8 trillion in assets under management (AuM), posting a robust annual growth rate of 20% since 2005.
In the US in 2018, passive funds (including traditional unlisted mutual funds and passive ETFs) attracted net inflows of US$431 billion. In comparison, active mutual funds in the U.S. reported net outflows of US$418 billion, the highest level of annual outflows for this category on record.
In the larger and more mature market of the U.S., ETFs represent about 16% of the size of the broader mutual fund industry. Comparatively, in Australia, penetration is at about 1.5%. While recent growth has been fast, we believe Australian investors are just starting to scratch the surface when it comes to ETF usage.
Fears that the popularity of ETFs has fuelled sharemarket volatility are unfounded and data from 2018 assists in debunking this myth.