Global ETF News Older than One Year
Third FSB Annual Report
July 25, 2016--This third annual report provides an update on the activities of the FSB and its annual accounts for the financial year April 2015-March 2016.
During the course of the year the FSB has agreed the final components of the most important policy tools to fix the fault lines that led to the financial crisis. The report provides an update on the key activities, publications and decisions by the FSB during the course of the year.
view the 3rd Annual Report 1 April 2015-31 March 2016
Source: FSB
DECPG Global Monthly-July 2016
July 22, 2016--Key highlights in the latest issue include:
Overview
The global economy remains fragile going into the third quarter of 2016, with limited buffers to withstand a major shock.
Commodity exporters continue to struggle to adjust to persistently low commodity prices and domestic uncertainties, while importers are generally more resilient.
Risks to this outlook are decidedly tilted to the downside. In addition to existing risks, the United Kingdom's referendum decision to leave the European Union (Brexit) is generating uncertainty that is likely to weigh on global growth.
Special Focus: Recent Credit Surge in Historical Context
Since the global financial crisis, credit to the private nonfinancial sector in EMDEs has risen rapidly, especially to the corporate sector.
Source: World Bank
DECPG Global Weekly-July 22, 2016
July 22, 2016--TAKING STOCK
U.S. initial jobless claims edged lower; housing market rebounded
Euro Area PMIs edged down; ECB left interest rates unchanged
Flash UK PMIs fell sharply after Brexit vote.
S&P downgraded Turkey's sovereign debt rating after failed coup attempt
Nigeria's inflation accelerated in June
WEEKLY INSIGHT
Fiscal Policy Challenges in Emerging Market and Developing Economies
Fiscal policy challenges in emerging market and developing economies (EMDEs) vary across commodity importers and exporters. However, in most countries, the scope for expansionary fiscal policy remains limited.
Source: World Bank
IMF-Sovereign Debt Restructuring and Growth
July 22, 2016--Summary: This paper studies the effect of sovereign debt restructurings with external private creditors on growth during the period 1970-2010.
We find that there are bad and good (or not so bad) debt restructurings for growth. While growth generally declines in the aftermath of a sovereign debt restructuring, agreements that allow countries to exit a default spell (final restructurings) are associated with improving growth. The impact can be significant. In general, three years after restructuring, growth is about 5 percent lower compared to countries that did not face restructuring over the same period. The exception is for final restructurings, which result in positive growth in the years immediately after the restructuring. Final restructurings tend to be better for growth because they reduce countries' debt, with the strongest effect for countries that exit restructurings with relatively low debt levels.
Source: IMF
IMF Working paper-Sovereign Risk and Deposit Dynamics :Evidence from Europe
July 22, 2016--Summary: The unprecedented expansion of sovereign balance sheets since the global financial crisis has given a new meaning to the term sovereign risk.
Developments in Europe since early 2010 presented new challenges for the functioning of private banks in an environment of heightened sovereign risk. This paper uses an innovative way of measuring the perception of sovereign risk and its impact on deposit dynamics during 2006-11. Using an extension of a common market discipline framework, it shows that exposure to sovereign risk may have limited the ability of banks in Europe to attract deposits. The results are robust to inclusion of conventional measures of bank performance and the sector-wide holdings of foreign sovereign debt.
Source: IMF
WisdomTree and ICBC Credit Suisse Enter Global Product Partnership on S&P China 500 Index
July 21, 2016-ETF Innovator Joins Local China Expert on Novel Product Based Upon Index Developed by S&P Dow Jones Indices
Partnership Will Provide Investors Access to a Better Barometer for "Total China"
WisdomTree Investments, Inc. (NASDAQ:WETF), an exchange-traded fund ("ETF") and exchange-traded product ("ETP") sponsor and ICBC Credit Suisse Asset Management (International) Company Limited ("ICBCCS"), today announced a global product partnership to launch ETFs that track the S&P China 500 Index.
Source: WWisdomTree
Winthrop
July 21, 2016--Leading up to this past month, the focus of the capital markets was on global economic growth, the weakened condition of the European banking sector and the potential improvement in domestic earnings.
The general wait-and-see attitude of the recent initiatives to stimulate economic growth in Japan and Europe combined with signs of improvement in China's economy helped to provide some stability to equity trading levels. Yet, at the same time investors were trying to digest negative interest rates in Germany, Denmark, Switzerland, Sweden and Japan.
Source: Winthrop Capital Management
EDHEC Risk Institute releases major new research on misconceptions in smart beta investing
July 21, 2016--EDHEC Risk Institute has released a major new research publication on misconceptions in smart beta investing. The research reviews ten common but mistaken claims about smart beta that present risks for investors and sheds light on underlying issues.
The ten misconceptions, in three separate areas of smart beta performance and risk, are the following:
Performance drivers
The hiding game: "smart beta generates alpha"
The monkey portfolio claim: "anything beats cap-weighted market indices"
The value and size myth: "all smart beta performance comes from value and small-cap exposure"
The rebalancing fantasy: "smart beta outperforms because it trades against mean reversion"
view the Ten Misconceptions in Smart Beta Investing report
Source: EDHEC Risk Institute
ERI Scientific Beta Newsletter-14, July 2016
July 20, 2016--Pay For What You Get
From June 2016, ERI Scientific Beta, the smart beta index provider offshoot of EDHEC-Risk Institute, has been offering a revolutionary "pay for what you get" approach to index pricing that disrupts the traditional model of fixed fees on assets under management and enables investors to relate their fees directly to smart beta index performance.
Source: EDHEC-Risk Institute
Deutsche Boerse reaches 55.5 percent share approval on LSE deal
July 20, 2016--Deutsche Boerse (DB1Gn.DE) has won further backing among its shareholders for its planned merger with the London Stock Exchange Group (LSE.L), with the German exchange operator reporting a 55.5 percent approval rate on Wednesday.
Deutsche Boerse had asked its shareholders to back the $27 billion (20.5 billion pounds) merger and last week lowered the acceptance threshold to 60 percent from an earlier 75 percent of its shareholders.
Source: Reuters
