Global ETF News Older than One Year
ETF Securities-Precious Metals Monitor--January 2018
February 5, 2018--Key Highlights
Gold: Don't Fret Just Yet About Rising US Bond Yields
Gold has risen 26% since the start of the current Federal Reserve ("Fed") tightening cycle in December 2015. To many this came as a surprise, since the rule of thumb is that rising rates are bad for gold prices.
Yet the perception that rising rates spell doom and gloom for metals is not as clear cut as many presume. Over the last 40 years, there have been 10 major rate tightening cycles by the Fed with mixed results for gold returns. Certain periods saw pullbacks like that of 1981-1984, yet just as many periods exhibited a strong positive return, most notably 1977-1980 and 2004-2006. The true driver for gold is real interest rates, which is why even though current US yields approach 3%, gold investors should not panic. Inflationary pressures and inflation expectations continue to rise commensurately keeping real interest rates low and range bound (between 0.4% and 0.7% on a 10 year basis).
Source: etfsecurities.com
Stock lending by ETF operators worries investors
February 4, 2018--Using a process known as securities lending,,the ETF will loan stock in a company to a hedge fund (for a fee or other benefit) and receive collateral in return, usually in the form of either stocks or cash.
Source: FT.com
Strong ESG policies are no protection against scandal
February 3, 2018--Companies that aim to do good for society by adhering to environmental, social and governance policies are more likely to encounter lawsuits and regulatory actions, says BlackRock.
This surprising conclusion follows a study into whether companies signed up to 18 common ESG policies are less likely to ...
Source: FT.com
IOSCO issues recommendations and good practices to improve liquidity risk management for investment funds
February 2, 2018--The Board of the International Organization of Securities Commissions (IOSCO) has issued today final recommendations that seek to improve liquidity risk management practices of open-ended collective investment schemes (CIS) as part of its mission to protect investors, ensure fair and efficient financial markets and reduce systemic risk.
IOSCO has also simultaneously published a final report that provides practical information, examples and good practices regarding open-ended fund liquidity risk management, to supplement its recommendations.
Source: IOSCO
DECPG Global Weekly
February 2, 2018--TAKING STOCK
U.S. nonfarm payrolls picked up in January; Federal Reserve left interest rates unchanged
Euro Area GDP growth reached a 10-year high in 2017; inflation slowed in January
Japan manufacturing activity accelerated in January
China's manufacturing activity softened slightly in January; non-manufacturing PMI edged up
Emerging-market bond sales reached a record level in January
U.S. nonfarm payrolls picked up in January; Federal Reserve left interest rates unchanged. U.S. nonfarm payrolls rose by 200,000 in January, above market expectations. December's nonfarm payrolls were revised up from 148,000 to 160,000. The labor participation rate was unchanged at 62.7 percent, and the unemployment rate held steady at 4.1 percent.
Source: World Bank
Bit-pop: Bitcoin rout deepens, down more than 40% so far this year
February 2, 2018--Financial Times Bitcoin is having a bad year, and it's only February 2. The cryptocurrency has come under further pressure on Friday and deepened its 2018 loss to more than 40 per cent.
Source: FT.com
EDHEC-Risk Institute provides an academic framework to maximise the benefits of factor investing for institutional investors
February 1, 2018--The relevance of factor investing is gaining acceptance amongst sophisticated investors. The approach recommends that allocation decisions be taken in terms of risk factors, as opposed to standard asset class decompositions.
When many asset classes plunged together during the 2008 market downturn despite their apparent differences, it became increasingly apparent that a seemingly well-diversified portfolio could exhibit a concentrated set of factors. When adopted, the factor perspective helps investors understand the sources of risk and return of various assets, and better assess a portfolio's level of diversification. Yet, some ambiguity remains with respect to what factors should be used and how factor investing should be implemented.
In a new publication entitled Smart Beta and Beyond: Maximising the Benefits of Factor Investing", EDHEC-Risk Institute, with the support of Amundi ETF, Indexing & Smart Beta, provides useful pedagogical clarification with respect to the benefits of factor investing in an institutional context.
Source: EDHEC-Risk Institute
Enhancing the performance of alternatives with gold
February 1, 2018--In recent years, buy-and-hold investors such as pension funds, endowments, insurance companies, and sovereign wealth funds (SWFs) have gradually increased their investments in alternative assets to diversify their portfolios and boost returns. 'Alternatives' make up 23% of SWF portfolios and 24% of global pension funds, up from single digits in 2000.
Alternatives can offer attractive returns but be highly correlated to the stock market during downturns and often require long holding periods. Our research suggests that gold can complement alternatives by providing returns, improving diversification, adding liquidity, and enhancing overall portfolio performance.
Source: World Gold Council (WGC)
The Financial Secrecy Index 2018
January 31, 2018--The Financial Secrecy Index ranks jurisdictions according to their secrecy and the scale of their offshore financial activities.
A politically neutral ranking, it is a tool for understanding global financial secrecy, tax havens or secrecy jurisdictions, and illicit financial flows or capital flight.
Shining light into dark places
An estimated $21 to $32 trillion of private financial wealth is located, untaxed or lightly taxed, in secrecy jurisdictions around the world. Secrecy jurisdictions-a term we often use as an alternative to the more widely used term tax havens-use secrecy to attract illicit and illegitimate or abusive financial flows.
Source: financialsecrecyindex.com
Oil prices fall for third day on inventory build
January 31, 2018--U.S. oil prices fell for a third day on Wednesday after data from an industry body showed crude stocks rose more than expected last week, while a selloff in other commodities, stocks and bonds added to the bearish tone.
Source: Zawya.com
