Global ETF News Older than One Year
More asset managers lend directly to European; US firms
June 23, 2015--Asset managers that conduct direct lending in the US and Europe have increased significantly during the past two years,
prompting shadow-banking concerns.
Source: SmartBrief
Investors in smart beta ETFs satisfied, but..
June 23, 2015--In a survey of investment professionals conducted as part of the Amundi ETF & Indexing research chair at EDHEC-Risk Institute on "ETF and Passive Investment Strategies," EDHEC-Risk Institute has solicited the specific views of European ETF investors on "smart beta" exchange-traded funds (ETFs).
This questionnaire has given rise to a study entitled "Investor Interest in and Requirements for Smart Beta ETFs." There are three key findings:
Those who have invested in smart beta ETFs are pleased overall: about three-quarters (74%) of smart beta ETF users declare that they are satisfied with them
In addition, when asked about their list of top priorities for future product development in the ETF space, smart beta ETFs dominate the list of top items mentioned by investors. In fact, among investors' six biggest priorities, four concern indices relating to smart beta approaches, namely smart beta equity (37%), equity factor (31%), equity style (29%), and smart beta bond (25%).
view the EDHEC-Risk Publication Investor Interest in and Requirements for Smart Beta ETFs
Source: EDHEC-Risk Institute
DMS-Emerging Markets: A Personal Journey
June 23, 2015--As today is somewhat of a celebration, it's my umpteenth birthday, I thought I would take the liberty, I hope you don't mind, of expanding on my usual article to include some personal insights.
I left India for the West many decades ago when it was still considered the backwater of humanity and you had to be brave to admit that it was the country of your birth.
Source: Peter Kohli of DMS for Nasdaq.com
DECPG Global Monthly-June 2015
June 23, 2015--Monthly Highlights: Global Economy in Transition
Global growth: further disappointments. The global economy hit a soft patch at the start of the year, with slowing activity in the United States and China, outright contractions in Russia and Brazil, and broad-based weakness across other major commodity exporters. On the positive side, growth strengthened in the Euro Area, Japan and India.
In its bi-annual Global Economic Prospects report, released on June 10, the World Bank predicts that global growth will average 2.8 percent this year, slightly lower than the 3 percent anticipated in January. With conditions expected to gradually improve, global growth should pick up to an average of 3.2 percent in 2016-17, broadly in line with previous expectations.
High-income countries: divergence narrowing. Despite setbacks in the first quarter, the U.S. economy is expected to grow above potential through the remainder of 2015, averaging 2.7 percent for the year as a whole.
Source: World Bank
RENMINBI ASCENDING: How China's Currency Impacts Global Markets,Foreign Policy, and Transatlantic Financial Regulation
June 22, 2015--How will the rise of China's currency impact global markets, foreign policy, and transatlantic financial regulation?
A new report by the Atlantic Council, the City of London Corporation, Standard Chartered and Thomson Reuters launched today in Hong Kong, Asia, continues the highly respected Danger of Divergence series of publications examining transatlantic cooperation and takes us a crucial step closer to understanding the impact RMB internationalization will have on the global financial system and explains how different parts of the evolving Chinese financial infrastructure interact in a changing geostrategic context.
Source: Atlantic Council
Gross's Pimco Exit Shows Fund Risk Not Systemic, IOSCO Head Says
June 22, 2015--Pimco's ability to cope with a stampede of investor withdrawals after Bill Gross's departure gives credence to arguments that mutual funds don't threaten the broader financial system, the chairman of a global group of market regulators said Monday.
The lack of market turmoil when Pacific Investment Management Co. and the famed bond investor parted ways last year also shows regulators should refrain from treating asset managers like big banks, said Greg Medcraft, chairman of the International Organization of Securities Commissions.
Source: Bloomberg
Net Stable Funding Ratio disclosure requirements finalised by the Basel Committee
June 22, 2015--The Basel Committee on Banking Supervision has today issued the final Net Stable Funding Ratio ("NSFR") disclosure standards, following the publication of the NSFR standard in October 2014.
Similar to the LCR disclosure framework, this requirement will improve the transparency of regulatory funding requirements, reinforce the Principles for sound liquidity risk management and supervision, strengthen market discipline, and reduce uncertainty in the markets as the NSFR is implemented.
Source: BIS
More asset managers become shadow banks
June 21, 2015--The number of asset managers lending directly to companies in the US and Europe has more than doubled in the past two years, underlining fears about the rapid development of financial intermediaries known as shadow banks.
The 120 per cent rise in the number of fund managers operating direct lending strategies has come as banks have been forced to scale back their lending activities due to regulatory pressure to shrink their balance sheets.
Source: FT.com
Active Managers Must Prove Their Worth
June 20, 2015--Is there any way to tell in advance which investment funds will perform best? And do the funds that most differ from their index-which are the most "active"-do better in the long run?
These questions strike at the very reason for the existence of the active management industry, which has suffered years of erosion as investors have moved to lower cost passive index funds.
Source: MD
FT 500 2015 Introduction and methodology
June 19, 2015--This is the 19th annual ranking of the FT Global 500, providing an annual snapshot of the world's largest companies.
The total market capitalisation of the Global 500 companies has increased 5.5 per cent from $30,696bn to $32,387bn.
The FTSE All World index has risen 3.5% over the same period.
Source: FT.com
