Global ETF News Older than One Year
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
Bond funds worldwide post biggest outflows in two years-BofA
June 19, 2015--Investors worldwide pulled $10.3 billion out of bond funds in the week ended June 17, marking the biggest outflows from the funds in two years, data from a Bank of America Merrill Lynch Global Research report showed on Friday.
Investment-grade bond funds posted $2.1 billion in outflows, marking their first outflows in 78 weeks, according to the report, which also cited data from fund-tracker EPFR Global. Riskier high-yield bond funds posted $4 billion in outflows to mark their biggest withdrawals since last December.
Source: Reuters
Record number of hedge funds now operating around world: HFR
June 19, 2015--Wealthy investors can now choose from a record 10,149 global hedge funds according to industry data released on Friday that show hundreds of new launches but nearly as many liquidations.
During the first three months of 2015, 264 new funds were launched, according to Hedge Fund Research (HFR)data.
Source: Reuters
Bond funds worldwide post biggest outflows in two years-BofA
June 19, 2015--Investors worldwide pulled $10.3 billion out of bond funds in the week ended June 17, marking the biggest outflows from the funds in two years, data from a Bank of America Merrill Lynch Global Research report showed on Friday.
Investment-grade bond funds posted $2.1 billion in outflows, marking their first outflows in 78 weeks, according to the report, which also cited data from fund-tracker EPFR Global. Riskier high-yield bond funds posted $4 billion in outflows to mark their biggest withdrawals since last December.
Source: Reuters
DECPG Global Weekly
June 19, 2015--Taking Stock
U.S. Fed kept interest rate unchanged, while industrial production contracted and inflation accelerated. In light of the modest improvement in the U.S. economic outlook, the Federal Reserve kept its benchmark interest rate unchanged. The FOMC's post-meeting communication appeared to signal that any interest rate increase would be gradual.
Meanwhile, partly due to a contraction in mining output, U.S. industrial production unexpectedly fell 0.2 percent (m/m) in May, following a downwardly revised 0.5 percent decrease in April. Consumer prices rose 0.4 percent in May, the highest since February 2013, led by higher energy prices. Core inflation, which excludes energy and food, remained subdued
ECB approved emergency loans to Greek banks. The European Central Bank approved a less than €2bn increase in emergency loans to Greece's banking system after Eurozone finance ministers failed to reach an agreement on new bailout terms for the country. The move came as depositors continued to make large withdrawals from Greek banks.
Russia's recession continued in Q1.
Source: World Bank
Vanguard sees growth in ETFs from advisers in post-RDR world
June 19, 2015--Growing demand from independent financial advisers in markets where the use of provider commissions has declined is helping drive growth in the exchange traded funds market, according to Nick Blake, head of retail at Vanguard Investments UK.
Assets invested in Exchange Traded Funds (ETFs) globally broke through the $3trn (£1.9trn) milestone at the end of May, according to ETFGI, an independent research and consultancy firm.
Source: International Adviser
Here's a Bond Backed by Dirty Laundry
Another esoteric deal to hit the market
June 18, 2015--Coming soon to markets: a bond deal backed by-dirty laundry?
The $400 million of asset-backed securities (ABS) from Alliance Laundry Systems is the latest example of wacky assets being bundled into bonds that are then put up for sale to yield-hungry investors.
According to a ratings report from Standard & Poor's, the bond's payments ultimately depend on people's dirty laundry, or at least on their washing it.
Source: Bloomberg
High-Frequency Trading around Large Institutional Orders
June 18, 2015--Abstract:
Liquidity suppliers lean against the wind. We analyze whether high-frequency traders (HFTs) lean against large institutional orders that execute through a series of child orders. The alternative is that HFTs go "with the wind" and trade in the same direction.
We find that HFTs lean against the order in the first hour, but turn around and trade with the order in the case of multi-hour executions. This pattern could explain why institutional trading cost is 39% lower when HFTs lean against the order (by one standard deviation), but are 64% higher when they go with it.
Source: papers.ssrn.com
HFT Nightmare Gets Some Validation, But Only For Whales
June 18, 2015--To critics, high-frequency traders harm other investors by sniffing out their strategies and completing the juiciest trades first. New academic research from the Netherlands suggests naysayers have it at least partly right.
Large investors such as mutual funds and hedge funds break up their big stock trades into smaller pieces and execute them over the course of minutes or hours-an attempt to disguise their plans and avoid driving prices away from them.
Source: Bloomberg
