Global ETF News Older than One Year
Infographic-The World's "Hot" Money
Over $7.8 trillion of illicit money has flowed out of developing countries in last decade
December 11, 2015--Every year, roughly $1 trillion flows illegally out of developing and emerging economies due to crime, corruption, and tax evasion.
This amount is more than these countries receive in foreign direct investment and foreign aid combined.
This week, a new report was released that highlights the latest data available on this "hot" money. Assembled by Global Financial Integrity, a research and advisory organization based in Washington, DC, the report details illicit financial flows of money from developing countries using the latest information available, which is up until the end of 2013.
view the report-Illicit Financial Flows from Developing Countries: 2004-2013
Source: visualcapitalist.com
IMF Working paper-The U.S. Oil Supply Revolution and the Global Economy
December 10, 2015--Summary: This paper investigates the global macroeconomic consequences of falling oil prices due to the oil revolution in the United States, using a Global VAR model estimated for 38 countries/regions over the period 1979Q2 to 2011Q2.
Set-identification of the U.S. oil supply shock is achieved through imposing dynamic sign restrictions on the impulse responses of the model. The results show that there are considerable heterogeneities in the responses of different countries to a U.S. supply-driven oil price shock, with real GDP increasing in both advanced and emerging market oil-importing economies, output declining in commodity exporters, inflation falling in most countries, and equity prices rising worldwide. Overall, our results suggest that following the U.S. oil revolution, with oil prices falling by 51 percent in the first year, global growth increases by 0.16 to 0.37 percentage points. This is mainly due to an increase in spending by oil importing countries, which exceeds the decline in expenditure by oil exporters.
view the IMF Working paper-The U.S. Oil Supply Revolution and the Global Economy
Source: IMF
New Report Highlights the World's Most Competitive Cities
December 10, 2015--Improving the competitiveness of cities is a vital pathway to eliminating extreme poverty and promoting prosperity for a country's citizens, a new World Bank Group report finds.
Launched today, Competitive Cities for Jobs and Growth: What, Who, and How analyzes 750 cities to determine what makes them competitive and how they have grown their economies. It provides a catalogue of urban data that city officials can use to benchmark their performance.
view the Competitive cities for jobs and growth: what, who, and how
Source: World Bank
BlackRock ETP Landscape November 2015: US & broad dev. equities lead flows
December 10, 2015--Industry Highlights
Developed markets equities drive global ETP flows on stronger U.S. growth and ECB stimulus prospects
Global ETPs gathered $28.2bn in November fueled by U.S. equity and broad developed markets equity funds amid improving U.S. economic data and expectations the European Central Bank (ECB) will expand its stimulus program
U.S. equity funds collected $21.4bn as Fed minutes revealed a more positive outlook for the U.S. economy
Prospects for more stimulus from the ECB and relatively favorable valuations in Japan drove flows to broad developed markets equity funds of $6.4bn
The slowdown in China weighed on emerging markets equity funds which shed ($2.5bn) overall, concentrated in China country funds with ($2.0bn) of outflows
With the possibility of a December rate rise back in focus, Treasury funds shed ($4.5bn) while moderated by gains in investment grade corporate bond funds
Source: BlackRock- ETP Research
Revisions to the Standardised Approach for credit risk: Basel Committee issues second consultative document
December 10, 2015--The Basel Committee on Banking Supervision has today released a second consultative document on Revisions to the Standardised Approach for credit risk.
The revised proposals form part of the Committee's broader review of the capital framework to balance simplicity and risk sensitivity, and to promote comparability by reducing variability in risk-weighted assets across banks and jurisdictions.
Source: BIS
Nasdaq Launches International Designation to Offer Non-U.S. Companies Increased Visibility to U.S. Investment Community
December 9, 2015--Nasdaq, Inc. (Nasdaq:NDAQ) today announced the launch of the Nasdaq International Designation, a new visibility offering available to non-U.S. companies that have Level 1 ADRs or shares that trade on the over-the-counter market.
Source: Nasdaq.com
ERI Scientific Beta indices: November 2015 smart beta index performance report published
December 9, 2015--Among the highlights of the November 2015 monthly performance report for the ERI Scientific Beta indices:
This month, the best performing index in the Developed World universe among smart factor indices is the SciBeta Developed High Profitability Diversified Multi-Strategy index, with a relative return of 0.84% compared to the broad cap-weighted index, while the SciBeta Developed Low Profitability Diversified Multi-Strategy index posts the lowest relative return (-0.49%).
Performance for smart factor indices exposed to risk factors known to be well rewarded over long periods remains strong, with annual performance in excess of broad cap-weighted indices ranging from 0.85% to 3.11% since inception for the Developed universe.
Scientific Beta Multi-Beta Multi-Strategy (MBMS) indices associate an effective choice of weighting scheme, in terms of diversification, with an allocation to well-rewarded smart factors, to prevent indices from being too concentrated in one factor and to reduce their specific risks.
Source: ERI Scientific Beta indices
Managers turn to reassuringly expensive smart beta as ETF fees fall
December 9, 2015--An ETF 'price war' is eating into providers' profits-and many hope that alternatively weighted products will help fill the coffers.
Source: Financial News
ETF sales surge 15% in a year
December 9, 2015--Net global sales of exchange-traded funds globally hit $319 billion in the first 11 months of 2015, a 15% increase on the previous record of $277 billion in the same period of 2014, according to data provider ETFGI.
ETFs have registered net inflows for the 22nd consecutive month, with net gains of $30 billion in November alone.
Source: Financial News
Infographic-Visualizing Chinese Investment in Africa
December 9, 2015--We have said previously that Africa is the new land of opportunity for speculators and investors.
Although there is no shortage of risks, the continent is home to vast amounts of resource wealth, the fastest growing class of millionaires, and even the world’s fastest growing city.
The Chinese must agree that there is great opportunity to be found on the second largest continent. That's why over the last decade, China has increasingly poured billions of dollars of foreign direct investment capital into Africa.
Source: visualcapitalist.com
