Global ETF News Older than One Year
DMS-Deciphering Developing Markets-Investors Should Look to Egypt For New Opportunities
February 17, 2015--Much has been written over the last ten months or so about the truly transformational elections that took place in both India and Indonesia.
However, there has been very little written about another transformational election that took place in another developing world country. That country is Egypt. In June, less than a month after Narendra Modi took office as prime minister of the largest democracy in the world, Abdel Fattah al-Sisi was sworn in as the sixth president of Egypt. And just like his counterpart in India, Sisi has set out to implement unpopular but necessary measures to ensure economic growth in his country.
Source: Peter Kohli of DMS for Nasdaq.com
ETF Securities Research-Precious Metals Weekly-Silver Steals the Show as the Stock Rally Resumes
February 17, 2015--Silver has been one of the best performing commodities in 2015. If the path of least resistance remains up for stocks in this moderate economic growth, low inflation environment, it also appears to be so for silver.
Silver, with over 50% of its demand for industrial use, has the additional relative value attraction of being the most beat-up of the precious metals over the past two years. Add an increase in global currency volatility, on the back of increasing liquidity from most central banks and the historical proxy for 'money' should benefit. It has. Silver increased 3.8% last week for a year-to-date (YTD) gain of 10.5% (behind the 13.3% YTD gain in unleaded gas). Gold remained resilient last week despite new stock market highs. In a similar vein as 2014, gold declined only 0.3% last week as it approached widely watched US$1,200/oz. support. The gold price appears increasingly well poised to appreciate, when the stock market and/or US dollar rally stumbles.
Source: ETF Securities Research
FTSE Announces New GDP Weighted Index to Reflect China's Growing Economic Importance
February 17, 2015--New index captures emerging markets, China A-shares and China N-shares
Furthers FTSE's innovation to help participants prepare for the inclusion of China A-shares in global benchmarks
KraneShares launches ETF tracking new FTSE index
FTSE Group ("FTSE"), the global index provider, has expanded its range of GDP Weighted Indices with the launch of the FTSE Emerging incl. China Overseas non-R/QFII GDP Weighted Index. The new index gives global market participants access to benchmarks comprising of emerging markets and Chinese equities including China A-shares, N-shares and S-chips, which are adjusted by GDP weighting rather than market capitalisation.
Source: FTSE
Alpha smarter than beta
But smart beta assets still double in two years
February 16. 2015--Towers Watson's institutional investment clients globally allocated over $8bn to smart beta strategies during 2014, bringing the total exposure to around $40bn (in 550 portfolios) in these strategies, across a range of asset classes.
This compares to its clients having a $32bn exposure to smart beta strategies at the end of 2013 and $20bn in 2012.
Luba Nikulina, global head of manager research at Towers Watson, said: "Interest in thinking smartly about betas within portfolios remains high but there is a considerable degree of caution about the proliferation of products labelled "smart beta".
Source: Tower Watson
Deutsche Bank Should Mull Split, Smith Writes in Financial News
February 16, 2015--Deutsche Bank AG should consider splitting its investment bank from its retail business, Roy Smith and former Sanford C. Bernstein & Co. analyst Brad Hintz wrote in Financial News Monday.
The firm is battling costs, pressure on margins, poor trading returns, demand for additional capital as well as cultural challenges in its London-based securities unit, according to Smith, finance professor at New York University's Stern School of Business, and Hintz, adjunct professor at Stern.
Source: Bloomberg
ETF Portfolio Solutions founder moves to MSCI
February 16, 2015--Founder of ETF Portfolio Solutions Tim Bradbury has announced he is moving to MSCI as its vice president of ETF client coverage in Australia.
Based in Sydney, Bradbury will look after increasing visibility, awareness and usage of the MSCI indexes within the exchange traded fund market in Australia, with a focus on retail distribution networks and self-managed super funds.
Source: Money Management
MSCI reclassification offers promise of long-term gain
February 15, 2015--Late in 2014, following their annual review of the Global Industry Classification Standard, index providers MSCI and S&P announced the creation of a real estate sector,
which separates bricks-and-mortar stocks from purely financial services and will...
Source: Financial News
Japan Exchange CEO eyes takeovers in certain segments-Boersen-Zeitung
February 14, 2015--Tokyo bourse operator Japan Exchange Group Inc (JPX) (8697.T) is considering takeovers in certain areas of its business but is not looking at large cross-border exchange mergers, its chief executive told a German newspaper.
"I am not thinking about direct takeovers between Tokyo and Europe," Atsushi Saito told Boersen-Zeitung in an interview published on Saturday.
Source: Reuters
DECPG Global Weekly-February 13, 2015
February 13, 2015--Taking Stock
EU and Greece failed to find agreement over bailout conditions. Unable to arrive to an agreement over the bailout
conditions for Greece, Eurozone finance ministers, along with the heads of the International Monetary Fund and the
European Central Bank, pledged to keep talking in the coming days with the hope of coming up with a plan at their next meeting.
Meanwhile, the ECB extended another €5bn in emergency loans to Greek banks on the fears that a spate of withdrawals could leave Greek lenders short of funding. Despite the breakdown in talks, Greek bond yields fell. Yields on the 3-year bond plunged 232 basis points to about 18 per cent, while those on the 10-year bond dropped by 46 basis points to 9.97 percent. Meanwhile, Greek GDP contracted 0.2 percent (q/q) in Q4, sharply down from Q3's 0.7 percent expansion.
Source: World Bank
7 Emerging Market Shifts Investors Must Watch
February 13, 2015--Brown Brothers Harriman points to seven recent developments in developing economies that mark important shifts for investors:
1) The Mexican central bank has taken rate cuts off the table (for now.)
2) Venezuela's modification of the FX regime seems like more of the same.
3) Brazilian President Dilma Rousseff's popularity fell off a cliff.
The latest polls showed that those who rate her government positively fell from 42% to 23%-the worst ratings for a president since 1998, when President Cardoso devalued the currency.
Moreover, 77% of the people interviewed believe that she knew about the corruption at Petrobras (PBR).
4) The Indian political landscape his shifted: The ruling BJP lost badly in the Delhi local elections, calling into question just how far Prime Minister Narendra Modi can push his reform agenda nationally.
Source: Barron's
