Global ETF News Older than One Year
IMF Global Financial Stability Report
April 15, 2015--April 2015: Global financial stability risks have risen since October. Chapter 1 finds that these risks have also been pivoting away from banks to shadow banks, from solvency to market liquidity risks, and from advanced economies to emerging markets. In advanced economies, the key challenge is to enhance the traction of accommodative monetary policies, ensure a smooth normalization of monetary policy in the United States, and manage the undesirable side effects of low interest rates.
Emerging markets must address their own domestic financial vulnerabilities from weaker growth, lower commodity prices, and a stronger dollar, while strengthening their resilience to the changing global environment.
Chapters 2 and 3 examine developments in international banking and the potential risks stemming from the financial management industry. Analyzing developments since the global financial crisis, Chapter 2 highlights a shift from direct cross-border lending to local lending by foreign banks’ affiliates.
Source: IMF
Japan edges out China as largest holder of U.S. Treasuries
April 15, 2015--Investors buy long-term U.S. assets in February
Foreigners buy U.S. corporate bonds for 6th straight month (Adds details on Japan edging out China as largest holder, bills, stocks)
U.S. Treasury Department data on Wednesday showed Japan edged out China in February as the largest holder of U.S. Treasuries, a month in which foreign investors sold U.S. government debt for a fourth straight month.
Source: Reuters
IMF-World Economic Outlook, April 2015 : Uneven Growth: Short-and Long-Term Factors
April 14, 2015-- Summary: Global growth remains moderate and uneven, and a number of complex forces are shaping the outlook. These include medium-and long-term trends, global shocks, and many country- or region-specific factors.
The April 2015 WEO examines the causes and implications of recent trends, including lower oil prices, which are providing a boost to growth globally and in many oil-importing countries but are weighing on activity in oil-exporting countries, and substantial changes in exchange rates for major currencies, reflecting variations in country growth rates and in exchange rate policies and the lower price of oil. Additionally, analytical chapters explore the growth rate of potential output across advanced and emerging market economies, assessing its recent track and likely future course; and the performance of private fixed investment in advanced economies, which has featured prominently in the public policy debate in recent years, focusing on the role of overall economic weakness in accounting for this performance.
view the IMF-World Economic Outlook, April 2015 : Uneven Growth: Short-and Long-Term Factors
Source: IMF
Bond-Liquidity Desperation Sends Record Cash Into ETFs Worldwide
April 14, 2015--The unprecedented demand for bond exchange-traded funds in the U.S. is spreading across the pond as European investors seek an easy way to buy into one of the longest bull runs in credit-market history.
The ETFs, which trade like stocks and can be purchased online, have attracted $35.7 billion this year worldwide, on track to exceed the record $84.9 billion placed last year, according to data compiled by BlackRock Inc. About $14 billion of that was in Europe, the data show.
Source: Bloomberg
Qatari banks plan Islamic finance venture in China
April 14, 2015--At present there is very little Islamic finance activity in China, but bankers see room for the industry to develop.
two Qatari banks and Chinese brokerage Southwest Securities signed a memorandum of understanding on Tuesday to establish a company handling Islamic finance deals in China.
Source: AME Info
BNY Mellon Q1 2015 ETF Newsletter
April 14, 2015--Global Market Commentary
As of February 28, 2015, there were 4,020 ETFs and total assets of $2.769 trillion. There are a total 214 providers on 61 exchanges.
Global net inflows into ETFs YTD 2015 reached $52.82 billion. iShares, Vanguard and WisdomTree led global inflows (as well as US inflows), while SPDR ETFs, Harvest Asset Management, and ProShares led global outflows.
There have been 100 new ETFs launched globally YTD 2015 from 40 providers, while 46 ETFs closed.
U.S. Market Commentary
The United States has 1,386 ETFs with assets of $2.00 trillion as of the end of February 2015. There are 58 ETF providers on 3 exchanges. The US represents 72.2 percent of global ETF assets.
There were net new inflows into ETFs totaling $23.94 billion YTD as of the end of February. This represents 45 percent of global inflows.
For equity ETFs, European, Global (ex-US), and APAC exposed ETFs led inflows, while North American, Emerging Markets and Middle East & Africa exposed equity ETFs had the highest outflows.
For fixed income ETFs, Government, High-Yield and Corporate bond ETFs led inflows while Mortgage based ETFs led the fixed income outflows.
For Commodity ETFs, Precious Metals, Broad, and Energy exposed ETFs led inflows, while Agriculture and Industrial Metals ETFs led outflows.
Source: BNY Mellon
Professor Noël Amenc Steps Down as Director of EDHEC-Risk Institute
April 14, 2015--On the occasion of the EDHEC-Risk Days conference, which took place in London on March 24 and 25, 2015, Tomas Franzén, Chief Investment Strategist with the Swedish national pension fund AP2 and chairman of EDHEC-Risk Institute's International Advisory Board,
announced the resignation of Professor Noël Amenc from his role as Director of EDHEC-Risk Institute.
Source: EDHEC-Risk Institute
ETFs expand into Bitcoins
April 14, 2015--WinklevossBitcoin Trust Exchange Traded Fund (ETF), which will track the performance of Bitcoins, the most talked about digital currency, will be available to investors later this year.
Launched by Cameron and Tyler Winklevoss-the twins who worked with Mark Zuckerberg in the early stages of Facebook-the ETF is currently in the process of regulatory approval.
Source: FT.com
World Bank-Remittances growth to slow sharply in 2015, as Europe and Russia stay weak; pick up expected next year
April 13, 2015--Potential to leverage migrant savings and remittances for development financing remains, says WB report
Growth in global remittances, including those to developing countries, will slow sharply this year due to weak economic growth in Europe, deterioration of the Russian economy and the depreciation of the euro and ruble, says the latest issue of the World Bank's Migration and Development Brief, released today.
Officially recorded remittances to the developing world are expected to reach $440 billion in 2015, an increase of 0.9 percent over the previous year. Global remittances, including those to high income countries, are projected to grow by 0.4 percent to $586 billion.
Migration and Remittances: Recent Developments and Outlook* Special Topic: Financing for Development
Source: World Bank
How Can Buy-Side Institutions Measure Their Relative Trading Performance?
April 11, 2015--"Best execution" is a term that can have different meanings depending upon your perspective. For example, sell-side participants may define it in the context of Regulation NMS's Rule 611-the order protection rule-as best price.
As we noted in our September 2014 seminar at Institutional Investor's International Trader Forum in Berlin, the U.K.'s FCA noted in their July 2014 "Thematic Review, Best Execution and Payment for Order Flow" that, "Best execution is broader than 'best price' and this is a major difference between Europe and other jurisdictions such as the U.S." The buy-side may be more closely aligned with Former SEC Associate Director for Examinations Gene Gohlke's definition as placing trades to minimize implementation costs.
Source: Bloomberg Trade Book
