ETF Securities Weekly Flows Analysis-The slightly hawkish FOMC statement failed to curb investors' appetite for gold
August 1, 2016--Gold inflows suggest investors continue to hedge against uncertainties ahead.
Global equity ETPs attracted US$33mn. Inflows dominated by thematic ETPs related to robotics.
The Bank of Japan easing measures fell short of expectations, boosting long JPY exposures.
Gold attracted US$277.6mn of flows this week suggesting the slightly hawkish FOMC statement failed to clear away uncertainty. The Federal Reserve left interest rates unchanged at its July meeting but noted that near-term risks to the US economy have "diminished" after a rebound in US hiring in June.
Source: ETF Securities
DECPG Global Weekly -July 29, 2016
July 29, 2016--TAKING STOCK
U.S. preliminary Q2 GDP growth was weaker than expected; Fed left interest rates unchanged in July
Euro Area GDP growth slowed in Q2; inflation edged up
Bank of Japan announced a modest increase in stimulus, kept interest rates unchanged
The Central Bank of Nigeria raised interest rates
The World Bank raised its 2016 oil price forecast
WEEKLY INSIGHT
Structural Reform Challenges in Emerging Market and Developing Economies
Structural reforms are needed in emerging market and developing economies (EMDEs) to lift medium and long-term growth, reduce vulnerabilities, and signal to investors that the authorities are committed to strengthening long-term growth prospects.
Source: World Bank
Rupee Joins Bonds Rallying Most Since 2013 as India Inflows Jump
July 29, 2016--Currency advances in July after three months of losses
Local stocks garner the biggest foreign inflows since March
Indian sovereign bonds completed their best monthly performance in more than three years and the rupee strengthened as foreign investors snapped up local debt at the fastest pace since October.
Source: Bloomberg
MUFG Investor Services to Acquire Rydex Fund Services
July 28, 2016--Ropes & Gray advised MUFG Investor Services, the global asset servicing group of Mitsubishi UFJ Financial Group (MUFG), in its proposed acquisition of Guggenheim Investments' 1940-Act mutual fund administration business, Rydex Fund Services.
Headquartered in Tokyo, MUFG is one of the largest banks in the world with $2.4 trillion in assets.
Source: Ropes & Gray
WEF-Survey shows that seldom used financial risk mitigation tools are key to bridge the emerging markets' $1 trillion infrastructure gap
July 28, 2016--The Risk Mitigation Instruments in Infrastructure: Gap Assessment report highlights the effectiveness and use of risk-mitigation instruments in infrastructure
The report shows that current instruments are too complex, lack adequate standardization and are too costly for the private sector to use
Several actions could help accelerate the allocation of institutional investors' funds towards investment opportunities in infrastructure in emerging and developing economies
A new report launched today by the World Economic Forum calls for international financial institutions to develop new tools and products to close the infrastructure gap in emerging and developing economies. The report, Risk Mitigation Instruments in Infrastructure: Gap Assessment, offers a framework for institutions to assess gaps in the provision of risk-mitigation instruments and to mobilize much-needed long-term infrastructure investment in emerging and developing economies.
view the Risk Mitigation Instruments in Infrastructure: Gap Assessment report
Source: World Economic Forum (WEF)
World Economic Forum-Risk-Mitigation Instruments in Infrastructure: Gap Assessment
July 28, 2016--The report, Risk Mitigation Instruments in Infrastructure: Gap Assessment, offers a framework for institutions to assess gaps in the provision of risk-mitigation instruments and to mobilize much-needed long-term infrastructure investment in emerging and developing economies.
The report outlines input from more than 40 institutional and private investors with total assets under management exceeding $2 trillion, as well as feedback from project developers and construction companies, global banking institutions, insurance and reinsurance companies, international financial institutions and professional services firms.
view the Risk Mitigation Instruments in Infrastructure Gap Assessment
Source: World Economic Forum
BlackRock's Midyear Outlook
July 27, 2016--Markets are torn between anxiety over the fallout from the UK's Brexit vote and the prospect of a strengthening U.S. economy.
The BlackRock Investment Institute provides a roadmap for the second half of the year.
Source: BlackRock
IMF-New External Assessments Show Larger Imbalances in 2015
July 27, 2016--External imbalances have widened again after narrowing following the global crisis
A more balanced policy mix is needed, with greater reliance on fiscal and structural policies
Collective policy action will be needed if global demand slows further
External imbalances widened again in 2015 after narrowing in the aftermath of the global financial crisis. Countries should take measures that reduce excess imbalances without compromising global demand, according to a new IMF analysis.
view the IMF 2016 External Sector Report
Outflows for Europe equity exposures moderated to ($1.6bn) and funds listed
in Europe experienced their first inflows since January with $0.6bn
Broad EM equities generated $3.6bn to bounce back from outflows in May, and
EAFE flows accelerated to $3.1bn
Source: BlackRock ETP Research
Safe haven categories fared well, with gold and U.S. Treasuries accumulating $5.4bn and $1.5bn, respectively, and minimum volatility funds adding $2.8bn
Yield-oriented funds brought in a combined $8.7bn, led by the best high
dividend equity month on record with $3.8bn and EM debt with $2.3bn
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