Global ETF News Older than One Year
Goldman Sachs' lessons from the 'quant quake'
March 8, 2017--Nearly 10 years after its nadir, quantitative investing is again the hot trend in finance
It was a typical New York summer day, the kind where arriving at Goldman Sachs' perfectly air-conditioned offices in downtown Manhattan was a blissful release from the humid weather outside.
Source: FT.com
To Unlock Potential of Digital Age, Europe Must Go Beyond Internet Access, Says World Bank
March 7, 2017-Countries in the European Union (EU) must enact policies designed to better help workers adapt to new jobs being created by the internet if they want to avoid increasing inequality and exclusion in the region, notes a new World Bank Report.
According to Reaping Digital Dividends: Leveraging the Internet for Development in Europe and Central Asia, launched in Bucharest today, affordable and nearly universal access to the internet has not been enough for countries in the EU to fully benefit from opportunities being created by digital technologies and more needs to be done to develop a policy environment that can better leverage this access by linking workers to digital jobs.
Source: World Bank
State Street to Start Voting Against Companies That Don't Have Women Directors
March 7, 2017--Firms won't have an exact quota for compliance with State Street's mandate, but must prove they attempted to improve a lack of diversity.
Index-fund giant State Street Global Advisors on Tuesday will begin pushing big companies to put more women on their boards, initially demanding change at those firms without any female directors.
Source: Wall Street Journal
AI technology to replace 90,000 buy-side jobs by 2025
March 7, 2017--New report predicts artificial intelligence will replace 230,000 jobs across capital markets globally by 2025.
By 2025, artificial intelligence (AI) technology will reduce the number of employees in asset management globally by 90,000, according to research.
A new report authored by research and consulting firm, Opimas, found employees in capital markets globally will decrease by 230,000 and the asset management industry will likely shrink the most as a result of AI implementation.
Source: thetradenews.com
STOXX Licenses Next Generation Of Low Carbon Indices To Scandinavian Asset Owner
March 7,2017--STOXX Ltd., the operator of Deutsche Boerse Group's index business, and a global provider of innovative and tradable index concepts, today introduced the STOXX Climate Impact and STOXX Climate Awareness Indices.
This next generation of low carbon indices incorporates the CDP climate change scoring methodology which evaluates companies based on their progress in the transition towards a low carbon economy.
Source: Deutsche Börse Group
IMF Working paper-The Volatility of Capital Flows in Emerging Markets: Measures and Determinants
March 7, 2017--Summary:
Capital flow volatility is a concern for macroeconomic and financial stability. Nonetheless, literature is scarce in this topic. Our paper sheds light on this issue in two dimensions. First, using quarterly data for 65 countries over the period 1970Q1-2016Q1, we construct three measures of volatility, for total capital flows and key instruments.
Second, we perform panel regressions to understand the determinants of volatility. The measures show that the volatility of all instruments is prone to bouts, rising sharply during global shocks like the taper tantrum episode. Capital flow volatility thus remains a challenge for policy makers. The regression results suggest that push factors can be more important than pull factors in explaining volatility, illustrating that the characteristics of volatility can be different from those of the flows levels.
Source: IMF
IOSCO finds little evidence of declining secondary corporate bond market liquidity
March 7, 2016--A report published today by the Board of the International Organization of Securities Commissions (IOSCO) has found no substantial evidence showing that liquidity in the secondary corporate bond markets between 2004 and 2015 has deteriorated markedly from historic norms for non-crisis periods.
The report, titled Examination of Liquidity of the Secondary Corporate Bond Markets, presents a data-driven analysis of secondary corporate bond markets during 2004 and 2015, with a specific focus on liquidity. It provides a global view of corporate bond market development within the broader economic and financial context.
view the Examination of Liquidity of the Secondary Corporate Bond Markets Final Report
Source: IOSCO
Modest pick-up in global growth but risks and vulnerabilities could derail recovery
March 7, 2017--Global economic growth is expected to pick up modestly next year to around 3.6 % from a projected 3.3% in 2017 but risks of rising protectionism, financial vulnerabilities, potential volatility from divergent interest rate paths and disconnects between market valuations and real activity hang over the outlook, according to the OECD.
The projected improvement largely reflects continuing and expected combined fiscal and structural initiatives in the major economies- notably China, Canada and the United States-together with a slightly more expansionary stance in the euro area, which could be more ambitious. Such policies are needed to catalyse private demand to boost global activity and reduce inequalities.
Source: OECD
ETFGI Reports The Global ETF/ETP Industry Grew Faster Than The Global Hedge Fund Industry During 2016
March 6, 2017--ETFGI, the leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reports today: that during 2016 the global ETF/ETP industry grew faster than the global hedge fund industry.
At the end of 2016 assets invested in the global ETF/ETP industry were US$530 billion larger than the assets invested in the global hedge fund industry (source HFR). This is a significant achievement for the global ETF/ETP industry, which will celebrate its 27th anniversary in March while the hedge fund industry is 68 years old.
Source: ETFGI
The correlation between USD and commodities is now gone: Citi
March 6, 2017--It's a given in the market that there's an inverse relationship between dollar strength and the price of commodities, but Citi Research argues that correlation is now gone.
"Commodity prices have traded in a strong inverse relationship with the U.S. dollar over the past decade or so, but this relationship broke down in late 2016 and the breakdown looks here to stay," analysts wrote in a note released on Monday.
Source: CNBC.com
