Global ETF News Older than One Year
Infographic-The Two High-Growth Sectors That Could Outperform Tech
November 1, 2017--Over recent years, there has been no bigger opportunity for investors than technology.
The FAANG stocks alone have gained over $1 trillion in market capitalization since 2014-and these stocks, along with other tech movers and shakers, have helped propel indices to constant new highs.
Source: visualcapitalist.com
FSB considers financial stability implications of artificial intelligence and machine learning
November 1, 2017--The Financial Stability Board (FSB) today published a report that considers the financial stability implications of the growing use of artificial intelligence (AI) and machine learning in financial services.
Financial institutions are increasingly using AI and machine learning in a range of applications across the financial system including to assess credit quality, to price and market insurance contracts and to automate client interactions. Institutions are optimising scarce capital with AI and machine learning techniques,as well as back-testing models and analysing the market impact of trading large positions. Meanwhile, hedge funds, broker-dealers and other firms are using it to find signals for higher uncorrelated returns and to optimise trade execution. Both public and private sector institutions may use these technologies for regulatory compliance, surveillance, data quality assessment and fraud detection.
Source: Financial Stability Board (FSB)
ETF Securities-Investment Insights October 2017 Market Reality May Benefit Real Assets
November 1, 2017--Summary
Risks of an aging bull market and record low volatility may spur investors to diversify into real assets for protection.
Rising inflationary pressures may benefit real assets.
Real assets remain cheap relative to financial assets.
Real assets, hard assets, tangible assets. The investment industry is full of terms for this asset class. Regardless of the terminology, however, real assets are simply investments that provide a store of value linked to a physical asset such as gold, oil, or real estate. This distinction from traditional investment vehicles may result in two key benefits:
1) providing diversification from financial assets such as stocks and bonds;
2) hedging against rising inflation.
Given the current reality of the market, particularly in the US, the benefits of real assets may begin to shine again.
Source: etfsecurities.com
BetaShares-The cryptic reality of Bitcoin
November 1, 2017-- This year's sky-rocketing Bitcoin price and the fact that, as at the time of writing, Bitcoin's market cap is over US$100m, has brought cryptocurrencies into the public's consciousness.
With Bitcoin's ultra-high levels of volatility since its inception in 2009 it has truly been a rollercoaster ride!
Source: betashares.com.au
World Bank-Doing Business Records Nearly 3,200 Reforms in 15 Years to Improve Business Climate Worldwide
October 31, 2017--Governments in 119 economies carried out 264 business reforms in the past year to create jobs, attract investment and become more competitive, says the World Bank Group's latest Doing Business 2018: Reforming to Create Jobs report.
Marking its 15th anniversary, the report notes that 3,188 business reforms have been carried out since it began monitoring the ease of doing business for domestic small and medium enterprises around the world.
view the World Bank-Doing Business 2018 Reforming to Create Jobs report
Source: World Bank
How Billionaire Investors Hedge Against Geopolitical Black Swans
October 31, 2017--Investors must always be comfortable with the idea that the market bears risk.
Sometimes this risk flies under the radar and isn't as pronounced as it probably should be.
However, in other cases, the topic of risk can catapult to the forefront of discussion. There can be specific events or signals unfolding that give investors the jitters-and during these times, investors will make adjustments to their portfolios to avoid getting caught off guard.
Source: visualcapitalist.com
Thomson Reuters Launches Latest Greenhouse Gas Emissions Report
October 31, 2017--Highlights relationship between decarbonization strategies and long-term financial performance
Thomson Reuters today released its report, Global 250 Greenhouse Gas Emitters: A New Business Logic, in tandem with the United Nation's flagship emissions gap report. Both reports were released in advance of the upcoming Climate Change Conference (COP 23). The report was written in collaboration with CDP' an international not-for-profit organization holding the world's largest collection of self-disclosed corporate environmental data, Constellation Research and Technology, a team of sustainability experts from Yale University, and BSD consulting, a global sustainability consultancy. Key contributions were also made from Baker McKenzie, KPMG, State Street Global Exchange, the United Nations Gigaton Coalition, and the Norwegian Climate and Environment Ministry, and the European Space Agency.
view the GLOBAL 250 GREENHOUSE GAS EMITTERS A NEW BUSINESS LOGIC report
Source: Thomson Reuters
IMF Working paper-Liquidity Stress Tests for Investment Funds: A Practical Guide
October 31, 2017--Summary:
This paper outlines a framework to perform liquidity stress tests for investment funds. Practical aspects related to the calibration of the redemption shock, the measurement of liquidity buffers and the assessment of the resilience of investment funds are discussed.
The integration of liquidity stress tests with banking sector stress tests and possible bank-fund interlinkages are also covered.
view the IMF Working paper-Liquidity Stress Tests for Investment Funds: A Practical Guide
Source: IMF
IMF Working Paper-Measuring Global and Country-Specific Uncertainty
October 30, 2017--Summary:
Motivated by the literature on the capital asset pricing model, we decompose the uncertainty of a typical forecaster into common and idiosyncratic uncertainty. Using individual survey data from the Consensus Forecasts over the period of 1989-2014, we develop monthly measures of macroeconomic uncertainty covering 45 countries and construct a measure of global uncertainty as the weighted average of country-specific uncertainties.
Our measure captures perceived uncertainty of market participants and derives from two components that are shown to exhibit strikingly different behavior. Common uncertainty shocks produce the large and persistent negative response in real economic activity, whereas the contributions of idiosyncratic uncertainty shocks are negligible.
view the IMF Working paper-Measuring Global and Country-Specific Uncertainty
Source: IMF
Assets of world's largest fund managers passes US$80 trillion for the first time
October 30, 2017--Passively managed assets continue to gain share of total assets at the expense of active management
Total assets under management (AuM) of the world's largest 500 managers grew to US$ 81.2 trillion in 2016, representing a rise of 5.8% on the previous year, according to latest figures from Willis Towers Watson's Global 500 research.
The research, which takes into account data up to the end of 2016, found that AuM for North American managers increased by 7.7% over the period and now stand at US$ 47.4 trillion, whilst assets managed by European managers, including the UK, increased by 2.8% to US$ 25.8 trillion. However, UK-based firms saw AuM decline for the second consecutive year, falling by 4.5% in 2016 to US$ 6.3 trillion.
Source: Willis Towers Watson
