Global ETF News Older than One Year
The World Federation of Exchanges publishes best practice guidelines for cyber security compliance
January 18, 2018--The World Federation of Exchanges ("The WFE"), which represents more than 200 market infrastructure providers including exchanges and CCPs, has today published a set of best practice guidelines for market infrastructures designed to engender a staff culture of cyber security compliance.
The paper takes a behavioural approach to the issue, as evidence shows that moving away from classroom-based refresher sessions and thinking more creatively about how to get staff to consider cyber defences in everything they do is more effective in creating long-term cyber compliance. Applying behavioural insights and 'nudge theory'- brought to prominence by Nobel Economics laureate Dr Richard Thaler with Cass Sunstein*-can be useful to change staff security behaviour. Applying small 'nudges', or offering incentives regularly to staff, leads to greater discussion and awareness of cyber threats which may result in better cultural outcomes.
Source: WFE (The World Federation of Exchanges)
First Bridge 'ETF 20/20': ETF Global Snapshot-A Look Back at 2017
January 17, 2018--In our look back at 2017:
Global ETF assets grew by a very robust 36% in 2017 to $4.88T.
Within the smart beta category, momentum strategy ETFs grew by 100% to $11.5B. Multi-factor equity ETFs also had rapid growth, increasing by 51% to $80B.
ETFs providing exposure to Internet stocks, Chinese equities and Indian small caps were among the 20 best performing ETFs.
Within the smart beta category, momentum strategy ETFs grew by 100% to $11.5B. Multi-factor equity ETFs also had rapid growth, increasing by 51% to $80B.
Three big index providers-S&P Dow Jones (27%), MSCI (15%) and FTSE Russell (13%)-account for over 50% of global ETP assets.
1614 new ETFs were listed globally, including cross-listings & share class variants.
ETFs providing exposure to short term treasury bonds, Ex-US developed equity and US momentum stocks had the highest inflows relative to assets in 2017.
ETFs providing exposure to Internet stocks, Chinese equities and Indian small caps were among the 20 best performing ETFs.
Source: First Bridge Data
World Economic Forum-World Enters Critical Period of Intensified Risks in 2018
January 17, 2018--World Enters Critical Period of Intensified Risks in 2018
Structural and interconnected nature of risks in 2018 threaten the very system on which societies, economies and international relations are based, according to The Global Risks Report 2018.
The positive economic outlook gives leaders the opportunity to tackle systemic fragility affecting societies, economies, international relations and the environment, according to the report
Environmental risks dominate the Global Risk Perception Survey for the second year running; when we asked about risk trajectories in the coming year, 59% of answers pointed to increasing risks
This year's report covers more risks than ever, but focuses in particular on four key areas: environmental degradation, cybersecurity breaches, economic strains and geopolitical tensions. And in a new series called "Future Shocks" the report cautions against complacency and highlights the need to prepare for sudden and dramatic disruptions.
view the World Economic Forum-The Global Risks Report 2018
Source: WEF (World Economic Forum)
MSCI Clarifies the Treatment of Tobacco Companies as part of its Current MSCI ESG Indexes Consultation
January 17, 2018--MSCI Inc. (NYSE: MSCI), a leading provider of research-based indexes and analytics, is currently conducting a consultation through the end of January 2018 on potential enhancements to the MSCI ESG Indexes.
Given the feedback that MSCI has received so far in relation to the treatment of tobacco companies in the MSCI ESG Indexes, MSCI would like to clarify the way in which the proposals, working together, would impact the treatment of tobacco:
1. Proposal in relation to worst offenders from all MSCI ESG Indexes
Over the past three years, we have observed consensus among international institutional investors on a minimum set of exclusions when considering ESG in their investment processes.
Source: MSCI
ETFGI reports assets invested in ETFs and ETPs listed globally increased by 36% during 2017 to reach a new high of $4.83 trillion
January 16, 2018--ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in ETFs and ETPs listed globally increased by 36.3% during 2017 to reach a new high of US$4.835 Tn at the end of December. (All dollar values in USD unless otherwise noted.)
Assets invested in ETFs/ETPs listed globally increased by a record $1.287 trillion during the year, to reach a new high of $4.835 trillion.
According to ETFGI's December 2017 global ETF and ETP industry insights report, an annual paid-for research subscription service, assets invested in globally-listed ETFs and ETPs grew by $1.287 Tn YTD.
Year-to-date, through end of December 2017, ETFs and ETPs listed globally saw record net inflows of $653.97 Bn.
Source: ETFGI
Horizon Launches Cryptocurrency Trading Through Multi-Exchange Gateway
January 16, 2018--Horizon's native gateway connects the main cryptocurrency exchanges, including Kraken, Bitstamp, Bitfinex and GDAX.
Trading technology provider Horizon Software said on Tuesday that it has started allowing clients to trade Bitcoin and several other digital coins through its newly minted gateway.
Source: financemagnates.com
ETF Securities Weekly Flows Analysis-Record inflows into robotic ETFs
January 15, 2018--Record inflows of US$56.3mn into robotic ETFs.
Industrial metal ETPs saw four consecutive weeks of inflows.
Long crude oil ETP outflows of US$29.3mn followed a 3.3% oil price rally last week.
Record inflows of US$56.3mn into robotic ETFs. Inflows into robotic ETFs rose to US$56.3mn, the highest weekly flow since their inception. Inflows into cybersecurity ETFs rose to US$15.9mn, the highest since June 2017. Robust inflows into these ETFs track a broader trend of strong performance in technology stocks (the S&P 500(R) Information Technology Index has risen 5.1% year-to-date for example). However, the increased of utilisation of automation and growing concerns about software security have piqued interest in this sub-class of technology in particular.
Source: etfsecurities.com
The Eurekahedge Report January 2018
January 15, 2018--The Eurekahedge Report focuses on the US$2.41 trillion global hedge fund industry along with a global hedge fund infographic summary. Alongside our coverage of monthly returns, performance and asset flows, this month's report features our European Investor Perspectives series rounding up exclusive insights from our recent Altinvestor Europe 2017 forum.
Highlights from this month's report
Hedge funds were up 8.25% for the year-almost 79% of fund managers are in positive territory for the year while another 19% have outperformed the MSCI ACWI Local Index which was up 17.55% in 2017. Back in 2016, only 58% of the managers were in the green though 25% of managers had outperformed the MSCI ACWI Local Index.
Asset base for the industry grew by US$219.0 billion in 2017-the highest growth in AUM since 2014 with US$113.5 billion of the gain in assets attributed to investor inflows and US$105.5 billion attributed to performance-based gains. This compares with an AUM decline of US$20.1 billion in 2016 where investor redemptions stood at US$55.1 billion while performance-based gains came in at US$35.1 billion.
Source: Eurekahedge
World Gold Council-The gold market in 20180-four trends to watch out for
January 15, 2018--In 2017, investors added gold to their portfolios as incomes increased, uncertainty loomed, and gold's positive price momentum continued: US$8.2bn flowed into gold-backed ETFs and the US$ gold price rose 13.5%, its best year since 2010.
As 2018 begins we explore four key market trends and their implications for gold:
synchronised economic growth
shrinking central bank balance sheets and rising rates
frothy asset prices
market transparency, efficiency, and access.
We believe that these trends will support demand and maintain gold's relevance as a strategic asset.
Source: World Gold Council (WGC)
IMF Working Papers-Regulatory Cycles: Revisiting the Political Economy of Financial Crises
January 15, 2018--Summary:
Financial crises are traditionally analyzed as purely economic phenomena. The political economy of financial booms and busts remains both under-emphasized and limited to isolated episodes. This paper examines the political economy of financial policy during ten of the most infamous financial booms and busts since the 18th century, and presents consistent evidence of pro-cyclical regulatory policies by governments.
Financial booms, and risk-taking during these episodes, were often amplified by political regulatory stimuli, credit subsidies, and an increasing light-touch approach to financial supervision. The regulatory backlash that ensues from financial crises can only be understood in the context of the deep political ramifications of these crises. Post-crisis regulations do not always survive the following boom. The interplay between politics and financial policy over these cycles deserves further attention. History suggests that politics can be the undoing of macro-prudential regulations.
Source: IMF
