IOSCO Statement on Disclosure of ESG Matters by Issuers
January 18, 2019--The International Organization of Securities Commissions (IOSCO) is today publishing a statement setting out the importance for issuers of considering the inclusion of environmental, social and governance (ESG) matters when disclosing information material to investors' decisions.
I. Introduction
As underlined by IOSCO in its Objectives and Principles of Securities Regulation,2 securities regulation has three key objectives: protecting investors, ensuring that markets are fair, efficient, and transparent, and reducing systemic risk. IOSCO Principle 16 states that issuers should provide "full, accurate, and timely disclosure of financial results, risk, and other information which is material to investors’ decisions." With regard to this Principle, IOSCO emphasizes that ESG matters, though sometimes characterized as non-financial, may have a material short-term and long-term impact on the business operations of the issuers as well as on risks and returns for investors and their investment and voting decisions.
Source: IOSCO
Hedge fund outflows were worst in 2 years last quarter
January 18, 2019--2018 was first year the industry contracted since the financial crisis
Source: FT.com
Interactive Brokers to Offer CFRA's Equity, ETF, and Mutual FundResearch to Investors on Its Platform
January 17, 2019--CFRA, one of the world's largest providers of independent research, announced today that it has teamed with the award-winning online brokerage firm InteractiveBrokers to give investors access to CFRA's world-class equity, ETF, and mutual fund research through the Investors' Marketplace platform.
CFRA provides research on more than 1,400 ETFs and 22,000 mutual fundshare classes, and its analytical team reports on more than 1,500 globalcompanies using its proprietary STARS recommendations
Source: CFRA
Basel Committee completes review of Principles for sound liquidity risk management and supervision
January 17, 2019--The Basel Committee on Banking Supervision has completed a review of its 2008 Principles for sound liquidity risk management and supervision. The review confirmed that the Sound Principles remain fit for purpose, and the Committee advises banks and supervisors to remain vigilant of liquidity risks in financial markets.
The Sound Principles underscore the importance for banks of establishing a robust liquidity risk management framework. As implementation of all its standards and guidelines is a high priority for the Committee, a review of the Sound Principles was initiated in 2017. The review also covered liquidity risk-related developments in financial markets since 2008.
Source: BIS
World Economic Forum-A brief history of globalization
January 17, 2019--When Chinese e-commerce giant Alibaba in 2018 announced it had chosen the ancient city of Xi'an as the site for its new regional headquarters, the symbolic value wasn't lost on the company: it had brought globalization to its ancient birthplace, the start of the old Silk Road. It named its new offices aptly: "Silk Road Headquarters".
The city where globalization had started more than 2,000 years ago would also have a stake in globalization's future.
Alibaba shouldn't be alone in looking back. As we are entering a new, digital-driven era of globalization-we call it "Globalization 4.0"-it is worthwhile that we do the same. When did globalization start? What were its major phases? And where is it headed tomorrow?
Source: World Economic Forum
Harnessing the long-term potential of dividend growth
January 16, 2019--Dividend growth strategies have often been regarded as attractive sources of income due to their resiliency in market downturns and subsequent participation in market rallies.
This paper explores the key characteristics and return patterns that have differentiated dividend growth strategies over time as well as explores the dividend growth methodology that ensures the long-term viability of dividends being paid.
Source: FTSE Russell
The Eurekahedge Report-January 2019
January 16, 2019--The benchmark Eurekahedge Hedge Fund Index was down 1.31%1 in December, down 3.85% year-to-date.
Total assets under management decreased by US$23.5 billion during the month as the sector witnessed performance-based decrease of US$11.3 billion while registering net asset outflows of US$12.2 billion.
Source: Eurekahedge
TrackInsight: Strong rebound in the hope of putting an end to trade disputes!
January 15, 2018--Stocks surged on bets that the United States and China would strike a deal to put an end to their trade war.
Indeed, it becomes a critical point as Chinese exports contracted strongly in December in the wake of tariff increases, pointing to further weakness in the world's second-largest economy in 2019 and deteriorating global demand.
The S&P500 ended the week with a gain of 2.54 percent after robust U.S. jobs data and dovish comments on interest rates by Federal Reserve Chairman Jerome Powell. The weaker than expected ISM services report for the month of December and the partial U.S. government shutdown did not really weigh on sentiment ahead of earnings season.
Source: trackinsight.com
Record year for passive funds as active fund outflows continue
January 15, 2019--The number of ETFs almost doubled in 2018.
Source: FT.com
IMF-How Much Should You Save for Retirement?
January 15, 2019--How much you need to save for retirement depends on your country's pension system. Our new research focuses on the interaction between saving and pension systems in an aging world. We use data from 80 countries to map public (government) and private savings in countries over the next 30 years, given their aging populations and the design of pension systems.
We find that trends in private saving drive the development of national saving. Assuming unchanged policies, population aging will drive up public spending on pensions by just over 2 percentage points of GDP by 2050. But the response of households' private saving differs markedly across countries, with pension system characteristics a major factor determining how much households save. Policymakers need to understand what drives these changes in saving rates, as savings provide a form of insurance against downturns and, by financing investment, stimulate long-term economic growth.
view the IMF The Future of Saving: The Role of Pension System Design in an Aging World
Source: IMF