Global ETF News Older than One Year
The good news on pensions: sustainable equals profitable
February 7, 2019--Would you be interested in investing in companies that produce nuclear weapons? Or companies that damage the environment, pollute our seas or violate human rights? Or companies that have been related to corruption scandals? If your answer is "no", unfortunately it is likely that you are investing in some way in these types of companies today.
How can we avoid this? The solution could be in your pension funds, given the global investments they make on your behalf. Companies with excellent certified behavior currently represent only between 20% and 45% of the total. The question for both policymakers and citizens is: would you be willing to invest in companies that avoid unacceptable behavior?
Source: World Economic Forum
Growth and economic well-being: third quarter 2018, OECD
OECD household income growth continues to lag GDP growth in third quarter of 2018
February 7, 2019--Growth in real household income per capita, which provides a better picture of changes in households' economic well-being than real GDP growth per capita, slowed to 0.1 % in the OECD area in the third quarter of 2018, compared with 0.2% in the second quarter of 2018.
While real GDP per capita growth slowed more significantly (to 0.3% from 0.6% in the second quarter of 2018), it continued to outpace growth in real household income per capita.
Source: OECD
FTSE Russell-Multi-asset benchmarks for US investors
February 7, 2019--FTSE Russell is proud to announce the launch of the FTSE Market Based Allocation Index Series, a new set of benchmarks designed to represent the performance of multi-asset investment portfolios across objectively-defined risk tolerance profiles.
Drawing on FTSE Russell's extensive index capabilities across equity and fixed income globally, the new series initially comprises five indexes designed for the US wealth management and financial advisory community, bridging a gap in index coverage for this important and growing market.
Source: FTSE Russell
Countries' perceptions of China's Belt and Road Initiative: A big data analysis
February 6, 2019--Drawing on a global database of media articles, the authors quantitatively assess perceptions of China's Belt and Road Initiative (BRI) in different countries and regions. They also identify the topics that are most frequently associated with the BRI.
Drawing on a global database of media articles, we quantitatively assess perceptions of China's Belt and Road Initiative (BRI) in different countries and regions. We find that the BRI is generally positively received. All regions as a whole, except South Asia, have a positive perception of the BRI, but there are marked differences at the country level, with some countries in all regions having very negative views. Interestingly, there is no significant difference in perceptions of the BRI between countries that officially participate in the BRI and those that do not.
We also use our dataset of media articles to identify the topics that are most frequently associated with the BRI. The most common topics are trade and investment. Finally, we use regression analysis to identify how the frequency with which these topics are discussed in the news affects the perceptions of the BRI in different countries. We find that the more frequently trade is mentioned in the media, the more negative a country's perception of the BRI tends to be.
view the Countries' Perceptions of China's Belt and Road Initiative: A Big Data Analysis
Source: bruegel.org
World Gold Council-Global gold-backed ETFs continued their strong growth in January
February 6, 2019--Holdings in global gold-backed ETFs and similar products rose in January by 72 tonnes(t) to 2,513t, equivalent to US$3.1bn in inflows, marking the fourth consecutive month of net inflows. Notably, total holdings have not been this high since March 2013, when the price of gold was 22% higher.
Global gold-backed ETF holdings have grown 6% over the past two months, driven by market uncertainty and a shift in sentiment that drove the price of gold 3.5% higher in January alone. Global assets under management (AUM) rose by 6% in US dollars to US$107bn over the month.
Source: World Gold Council
ETFGI reports asset growth and net inflows in global ETFs ETPs industry continues to outpace global Hedge Fund industry in Q4 2018
February 6, 2019--ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that assets invested in ETFs and ETPs listed globally amounted to US$4.82 trillion at the end of Q4 2018, following net inflows of US$164.84 billion and market moves during Q4. The Global Hedge Fund industry saw assets fall to US$3.11trillion, with net outflows of US$22.5 billion during the quarter (source: hedge fund data HFR), according to ETFGI's Q4 2018 Global ETF and ETP industry landscape report a paid for subscription research service.
(All dollar values in USD unless otherwise noted.)
Highlights
Asset growth and net inflows in global ETF/ETP industry continues to outpace global Hedge Fund industry.
$4.82 trillion invested in 7,620 ETFs/ETPs listed globally at end of 2018.
Source: ETFGI
World Gold Council-The relevance of gold as a strategic asset
February 5, 2019--Gold is a highly liquid yet scarce asset, and it is no one's liability. It is bought as a luxury good as much as an investment. As such' gold can play four fundamental roles in a portfolio:
a source of long-term returns
a diversifier that can mitigate losses in times of market stress
a liquid asset with no credit risk that has outperformed fiat currencies
a means to enhance overall portfolio performance.
Our analysis shows that adding 2%, 5% or 10% in gold over the past decade to the average pension fund portfolio would have resulted in higher risk-adjusted returns.
Source: World Gold Council
IMF Departmental Papers/Policy Papers-Debt Maturity and the Use of Short-Term Debt: Evidence form Sovereigns and Firms
January 5, 2019--The maturity structure of debt can have financial and real consequences. Short-term debt exposes borrowers to rollover risk (where the terms of financing are renegotiated to the detriment of the borrower) and is associated with financial crises.
Moreover, debt maturity can have an impact on the ability of firms to undertake long-term productive investments and, as a result, affect economic activity. The aim of this paper is to examine the evolution and determinants of debt maturity and to characterize differences across countries.
Source: IMF
IMF How To Notes-How to Organize Central Securities Depositories in Developing Markets: Key Considerations
February 4, 2019--Summary:
The key objective of this note is to support authorities in their decision making about the optimal organization of central securities depositories (CSDs) in their country. For the purpose of this note, a CSD is defined as an entity that provides securities accounts, a securities settlement system, and central safekeeping services to market participants, which can be banks and other financial institutions.
Authorities in developing markets, in particular central banks, may grapple with two questions: (1) whether to pursue a single CSD to increase market efficiencies and benefit from economies of scale and scope and (2) whether to partake in the governance of the CSD as owner or operator. This note presents seven considerations for authorities to take into account when answering these questions and determining the best model for their country.
Source: IMF
FSB publishes Global Monitoring Report on Non-Bank Financial Intermediation 2018
February 4, 2019--The Financial Stability Board (FSB) today published the Global Monitoring Report on Non-Bank Financial Intermediation 2018. The report presents the results of the FSB's eighth annual monitoring exercise that assesses global trends and risks from non-bank financial intermediation.
It covers data up to end-2017 from 29 jurisdictions, which together represent over 80% of global GDP.
The annual monitoring exercise is part of the FSB'’s strategy to enhance the resilience of non-bank financial intermediation. As in previous years, the exercise compares the size and trends of financial sectors in aggregate and across jurisdictions based primarily on sectoral balance sheet data.
Source: FSB
