Global ETF News Older than One Year
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
Solactive releases new line of ESG indices with ESG provider ISS ESG
February 1, 2019--"ESG is not just a trend. It is going to dominate contemporary investors' decisions on financial strategies for the future to come", outlines Timo Pfeiffer, Head of Research at Solactive on Solactive's recent index development. The German index provider released a new line of ESG screened indices in the equity and fixed income space.
The Solactive ISS ESG Screened Index Series aims to track various size and regional segments of the global capital markets, such as Japan, the United States, Europe, and Developed Markets, including only companies that have a record of low involvement in controversial areas, according to market standards on ESG controversy screens. Solactive worked with major ESG data and analytics provider ISS ESG, which developed the underlying framework utilised for the ESG screening.
Source: Solactive
Emerging Market regulators consult on recommendations related to sustainable finance
February 1, 2019-Securities regulators from growth and emerging markets are seeking public feedback on
proposed recommendations related to the development of sustainable finance in capital
markets and the role of securities regulators in this area.
IOSCO's Growth and Emerging Market Committee (GEMC) today published the consultation report Sustainable finance in emerging markets and the role of securities regulators, which proposes 11 recommendations for emerging market member jurisdictions to consider when issuing regulations or guidance regarding sustainable financial instruments. Among other things, the recommendations propose requirements for disclosure of material Environmental, Social and Governance (ESG) specific risks, aimed at enhancing transparency.
Source: IOSCO
ETFGI reports Environmental, Social, and Governance (ESG) ETFs and ETPS listed globally gather net inflows of US$679 Million during December 2018
January 31, 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$679 million during December.
Total assets invested ESG ETFs and ETPs decreased by 3.20% from US$23.22 billion at the end of November, to US$22.47 billion, according to ETFGI's December 2018 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 29.51% in 2018.
ESG ETFs and ETPs listed globally gathered $679 Mn in net new assets during December.
Source: ETFGI
World Gold Council-Gold Demand Trends Full year and Q4 2018
January 31, 2019--Key highlights
Central banks added 651.5t to official gold reserves in 2018, the second highest yearly total on record.
Net purchases jumped to their highest since the end of US dollar convertibility into gold in 1971, as a greater pool of central banks turned to gold as a diversifier.
Annual jewellery demand was virtually unmoved: down just 1t from 2017.
Gains in China, the US and Russia broadly offset sharp losses in the Middle East. Indian demand was stable at 598t (-4t).
Source: World Gold Council
Global ETF Industry Set to Double in Next Five Years; Canadian Industry to See Even Faster Growth
January 31, 2019--2018 brought the advent of the asset allocation ETF, an industry disruptor
ETFs continue to prove their value through times of global market volatility
BMO GAM offers 77 mandates and has a market share of 31 per cent in Canada
BMO Global Asset Management (BMO GAM) today released its annual ETF Outlook Report, which examines the Exchange Traded Fund (ETF) industry and highlights the trends expected to drive the year ahead.
According to the report, the global ETF industry is projected to double to more than US$10 trillion over the next five years. The Canadian industry is expected to grow at a faster rate to C$400 billion by 2024.
Looking Back at 2018
The global ETF market hit a record high of US$4.7 trillion assets under management (AUM) at the end of the year. There were 6,483 ETFs globally, up almost 12 per cent from the previous year.
The Canadian ETF market grew to C$156 billion AUM with inflows of C$20 billion.
The Canadian equity ETF with the most inflows last year was BMO S&P/TSX Capped Composite Index ETF (ticker: ZCN), with more than C$1 billion in net flows.
Source: BMO Financial Group
