Global ETF News Older than One Year
Exchange traded fund assets will double to $5tn by 2020
January 25, 2015-Exchange traded fund assets will double to $5tn by 2020, according to a detailed study by PwC, far outstripping the asset growth of traditional fund managers, which have come under increasing pressure to prove their worth.
The consultancy calls the growth a "game changer" for the asset management industry.
Source: FT.com
PwC-Exchange traded funds (ETFs): Understanding the future opportunities and challenges
January 24, 2015--Executive summary-PwC ETF 2020
The proliferation of ETFs was identified in our AM 2020 publication as one of the six game changers in the asset management (AM) industry. ETFs are no longer a niche product, and their impact will continue to be felt much more widely than imagined.
As such, all financial services firms should consider developing an ETF strategy. This may be an obvious choice for firms planning to manage, service, or distribute ETFs, but it is also important for firms that will be competing in an environment that is increasingly shaped by ETFs.
In 2013, PwC explored the rise of ETFs in depth in 'The next generation of ETFs'. Based on the history of ETFs and a close examination of recent developments, this paper identified key trends, highlighted potential obstacles to growth and articulated how industry players might formulate coherent strategies to deal with ETFs. Since then, we have gone on to survey asset managers, service providers and other industry participants around the world in an effort to better understand regional developments in ETFs and use their expertise as a sounding board for our own perspectives. This report leverages the results of our global survey and our insights to paint a picture of how the ETF business is likely to evolve globally over the next six years.
view the PwC report-ETF 2020 Preparing for a new horizon
Source: PwC
DECPG Global Weekly-January 23, 2015
January 23, 2015--ECB unveiled €1.1 trillion asset-purchase program. The European Central Bank announced it will inject about €1.1 trillion ($1.3 trillion) into financial markets through an asset-purchase program in a bid to counter weaker than expected "inflation dynamics".
Beginning March this year, the ECB will buy a total of ECB unveiled €1.1 trillion asset-purchase program. The European Central Bank announced it will inject about €1.1 trillion ($1.3 trillion) into financial markets through an asset-purchase program in a bid to counter weaker than expected "inflation dynamics".60 billion ($69 billion) a month of public and private sector securities until end-September 2016. These purchases may continue beyond September 2016 unless thereare clear signs of "a sustained adjustment in the path of inflation" towards ECB's target of close to 2 percent. Following the announcement, European stocks rallied, while the euro weakened to an 11-year low against the dollar.
Source: World Bank
Second progress report on banks' adoption of risk data aggregation principles issued by the Basel Committee
January 23, 2015--The Basel Committee on Banking Supervision today issued a second progress report on banks' adoption of the Committee's Principles for effective risk data aggregation and risk reporting.
Published in 2013, the Principles aim to strengthen risk data aggregation and risk reporting at banks to improve their risk management practices and decision-making processes. Firms designated as global systemically important banks (G-SIBs) are required to implement the Principles in full by 2016.
view the Progress in adopting the principles for effective risk data aggregation and risk reporting
Source: BIS
Leveraged ETF investors caught short by Swiss franc surge
January 22, 2015--ETF Securities labels SNB's decision to scrap the franc's peg to the euro as 'drastic and unprecedented' after it is forced to
delist an exchange-traded currency
Source: Financial News
Industrial Internet of Things: Unleashing the Potential of Connected Products and Services
January 22, 2015--Report assesses the business and socio-economic opportunities and risks expected in latest wave of technological change
The Industrial Internet of Things to redraw industry boundaries and create a new wave of disruptive companies
Vast majority of organizations still do not understand the full impact on their business and industries
The World Economic Forum today launched the Industrial Internet of Things: Unleashing the Potential of Connected Products and Services. The report demonstrates that the industrial internet of things will dramatically change manufacturing, energy, agriculture and other industrial sectors of the economy that, together, make up two-thirds of the global gross domestic product (GDP). view more
Source: WEF (World Economic Forum)
IMF-Middle East and Central Asia region-January 2015 Update
January 21, 2015--A large and possibly persistent decline in oil prices, and slower-than-projected growth in the euro area, China, Japan, and Russia, have substantially altered the economic context for countries in the Middle East and Central Asia.
The appropriate policy response will depend on whether a country is an oil exporter or importer. A common theme, however, is that these developments present both an opportunity and an impetus to reform energy subsidies and step up structural reform efforts to support jobs and growth.
Lower oil prices have weakened the external and fiscal balances of oil exporters, including members of the Gulf Cooperation Council (GCC). Large buffers and available financing should allow most oil exporters to avoid sharp cuts in government spending, limiting the impact on near-term growth and financial stability. Oil exporters should prudently treat the oil price decline as largely permanent and adjust their medium-term fiscal consolidation plans so as to prevent major erosion of their buffers and to ensure intergenerational equity.
view the IMF Middle East and Central Asia region-January 2015 Update
Source: IMF
AdvisorShares Weekly Market Update: More Negative Than Ever
For the week of January 12-January 16
January 21, 2015--Swiss National Bank Causes Havoc
Macro
Thursday was a truly monumental day in the capital markets as the Swiss National Bank (SNB) threw in the towel on trying to maintain its currency at 1.20 to the euro.
The reason for the peg was to keep its exports competitive in the European market. The natural inertia has been franc strength against the euro due to Switzerland's relative economic strength.
The immediate reaction to the news sent Swiss franc up 30% against the euro and 25% against the US dollar before closing the day with gains of 19% and 18% respectively. These would be large moves for multi-year periods let alone one day.
Source: AdvisorShares
ETF Securities Research-Commodity ETP Quarterly - Key Trends in 2014 & Outlook for 2015
January 21, 2015--Highlights
A comprehensive and fully up-to-date reference guide to investing in global commodity ETPs and indices-no ETP type or geographic area is excluded. The report details the large and growing choice of commodity ETP exposures and strategies around the world.
Summary analysis of global commodity ETP flows, trading volumes and AUM trends. Includes a detailed analysis of the main trends in Q4 2014 and the outlook for 2015.
Roll yield analysis (contango/backwardation) broken down by individual commodity and commodity sectors.
Useful fundamental commodity data and information. Updated and revised data on inventory trends, futures market positioning, futures curve developments, commodity index compositions and weights.
Source: ETF Securities Research
ETF Securities Research-Precious Metals Weekly-SNB Helps Lift the Tide for Precious Metals
January 20, 2015-Gold and silver regain some shine as store-of-value safe havens after shock SNB move. Gold and silver prices were boosted last week as the Swiss National Bank threw in the towel trying to cap the Swiss franc against the Euro, alongside rising stock market
volatility and bond yields declining to record lows.
Fed tightening expectations continue to erode. Fed tightening cycles have historically commenced for one primary reason, to ward off inflationary forces. Last week, the 30yr bond reached a new historic low close of 2.37%. December 2015 fed funds futures reduced 2015 FOMC tightening expectations another 9bps to about 30bps. Meanwhile sustained low, or negative, interest rates (in many European countries) should act as a building foundation for precious metals prices, notably gold and silver.
Source: ETF Securities Research
