Global ETF News Older than One Year
SEI Study: Active Exchange Traded Funds Remain On Growth Trajectory In 2014
Market Grew by 30 Products, $2.5 Billion AUM in Past Year
June 25, 2014--Actively managed exchange traded funds (ETFs) have seen significant growth in the number of products offered and assets under management over the past year and continue to gain popularity as an investment vehicle, according to a paper released today by SEI.
The paper, "Active ETFs: Revisited," notes that the active ETF market has grown by nearly 30 products and more than $2.5 billion assets under management in the past 12 months. This upward trend further demonstrates the attractiveness of active ETFs to both financial advisors and investors due to their lower costs, increased transparency and liquidity, and potential tax efficiency when compared to mutual funds.
Source: SEI
Chinese to liberalize renminbi, but will do it its way
June 25, 2014--For several years, a great dilemma has surrounded China's drawn-out campaign to open up its financial markets, liberalize capital flows and allow the renminbi (yuan) to become a much more important trade and investment currency on the world stage.
The hoped-for benefits are mighty ones, but so are the challenges. Full liberalization would make Beijing the servant and not the master of international monetary fluctuations.
The way of out of this dilemma has now become clearer.
Source: MarketWatch
China expands plans for World Bank rival
June 24, 2014--China is expanding plans to establish a global financial institution to rival the World Bank and the Asian Development Bank, which Beijing fears are too influenced by the US and its allies.
In meetings with other countries, Beijing has proposed doubling the size of registered capital for the proposed bank to $100bn, according to two people familiar with the matter.
Source: FT.com
Vanguard: 50% of advisers plan to increase ETF usage
June 24, 2014--Nearly all advisers surveyed by Vanguard Asset Management plan to maintain or increase their Exchange Traded Funds (ETFs) allocation over the next 12 to 24 months.
In the survey taken at its June Investment Symposium, 50% of the 220 advisers polled said they would increase their usage of Exchange Traded Funds (ETFs).
Source: International Adviser
New Study Adds Up the Benefits of Climate-Smart Development in Lives, Jobs, and GDP
June 23, 2014--STORY HIGHLIGHTS: With careful design, the same development projects that improve communities, save lives, and increase GDP can also fight climate change.
A new study examines the multiple benefits for a series of policy scenarios addressing transportation and energy efficiency in buildings and industry in five countries and the European Union.
It provides concrete data to help policymakers understand the broader potential of climate-smart development investments.
Source: World Bank
"Thousands of firms" could quit EU trading
June 23, 2014--Mifid II plans could force thousands of foreign firms out of Europe
Provisions within Mifid II to regulate direct electronic access could result in thousands of non-EU firms ceasing trading on European derivatives markets.
The European regulator Esma is currently consulting on the technical standards that will form the basis of the implementation of the Markets in Financial Instruments Directive or Mifid II.
Source: FOW
Fears mount over asset managers' shadow banking operations
June 23, 2014--The shrinking banking sector is creating a "major opportunity" for asset managers to step into the lending breach, but concern is mounting over their "shadow bank" operations and rising systemic importance.
The golden era for asset management comes as nearly $5tn in assets worldwide shifts out of investment banks following new US regulation that
Source: FT.com
Central Bank Reserve Managers More Cautious as Fed Tapers
June 23, 2014--Central bank reserve managers across the world are ready to take a more cautious approach to investment as the U.S. Federal Reserve continues to reduce its monetary stimulus, with the full effect of such tapering still to be felt so far as demand for riskier assets is concerned.
An annual survey of reserve managers found that the Fed's decision to wind down its monthly purchase program could have an impact on 60% of central banks in terms of their reserve management.
Source: Wall Street Journal
Expansion Into the Vast World of Commodities
June 23, 2014--From lean hogs to gold, the world of commodities is as vast as the world around us. On July 1, Bloomberg will take control of UBS's leading commodity index, a diversified index that provides investors with exposure to the most widely followed commodities in the world.
The index will be renamed from the "Dow Jones-UBS Commodity Index" to the "Bloomberg Commodity Index".
Source: Bloomberg
ETF Securities-Precious Metals Weekly--Silver Leads Precious Metals Price and Volatility Recovery
June 23, 2014--Gold and silver surge as the Fed keeps rates low, against a backdrop of geopolitical
instability. Sparked by a dovish FOMC meeting announcement, precious metals rallied sharply last week, led by the 5.3% gain in silver, with gold posting a 3.1% increase.
Geopolitical issues in Iraq and Russia have added another layer of support helping gold and silver remain above key technical levels of $1,300/oz. and US $20/oz. Gold ended last week with a year-to-date (YTD) gain of 9.1%, ahead of the S&P 500 index YTD gain of 6.2%. Unprecedented global central bank stimulus has depressed volatility across asset markets, including silver, while helping equity indices extend to fresh record highs. Supportive central bank measures has lifted risk appetite and weighed on precious metals sentiment, with silver positioning near record lows. By most historical measures the equity bull market is in an advanced stage, and as the sustainability of the rally is increasingly called into question, prudent investors appear to be diversifying into the precious metals (PMs) to hedge potential tail risks. The S&P 500 passed 578 successive calendar days above the 200dma this Friday. This duration period has been exceeded only 5-times since 1900. The most was 998-days ending on October 22, 1929.
Source: ETF Securities
