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New Report * ETF Landscape Industry Review August 2010
September 28, 2010--At the end of August 2010 the global ETF industry had 2,308 ETFs with 4,922 listings, assets of US$1,061.9 Bn, from 129 providers on 43 exchanges around the world.
Additionally, there were 874 other Exchange Traded Products (ETPs) with 1,439 listings and assets of US$135.0 Bn from 48 providers on 20 exchanges.
YTD assets have increased by 2.5% from US$1,036.0 Bn to US$1,061.9 Bn, compared to the 7.5% decrease in the MSCI World Index in US dollar terms.
The top 100 ETFs, out of 2,308, account for 63.4% of global ETF while 389 ETFs have less than US$50.0 Mn in assets and 483 ETFs have less than US$10.0 Mn in assets.
YTD the number of ETFs increased by 18.7% with 401 new ETFs launched, while 38 ETFs were delisted.
The number of ETFs listed in Europe surpassed the US in April 2009, now with 985 ETFs listed in Europe, compared to 871 in the US at the end of August 2010.
There are currently plans to launch 944 new ETFs.
Retirement Shunned by 'Nevertiree' Wealthy, Says New Global Report
60% of global high net worth individuals say they will 'never' retire
High Net Worth Individuals Exhibit Case of Retirement Jitters
Actuality of Retirement Doesn't Always Match Aspirations
September 27, 2010--Retirement is being rejected by a new breed of wealthy workers – the 'Nevertirees' - who want to carry on working for as long as they are able, says Barclays Wealth in its latest Insights report, The Age Illusion: How the Wealthy are Redefining Their Retirement.
Sixty percent of wealthy individuals polled in a global survey say that they plan to become a Nevertiree, shunning traditional retirement, instead continuing to work, start businesses and take on new projects in their later years.
The report, the 12th in the Barclays Wealth Insights series, is based on a survey of more than 2,000 high net worth individuals, who were asked to consider what retirement and later life means to them.
The findings show that the concept of nevertirement is expected to grow over the coming decades, with over 70% of respondents under the age of 45 saying that they will always be involved in some form of work.
Emerging markets such as Saudi Arabia (92%), United Arab Emirates (91%) and South Africa (89%) illustrated the biggest desire to keep on working in later life, however the concept is also popular in developed economies with the U.S. (54%), and the U.K. (60%) showing a desire to carry on working. Switzerland (34%), Spain (44%) and Japan (46%) are the most likely to want a conventional retirement.
In particular, 75% of U.S. respondents plan to work part time after they have stopped working permanently, seven percent more than the global average. Specifically, 32% plan to work between five and 20 hours per week in "retirement", and seven percent plan to work more than 20 hours per week.
Matt Brady, Head of Wealth Advisory, Americas at Barclays Wealth says: "This represents a step change for wealthy people. While previous generations looked to create their wealth early on in life with a view to enjoying it when they retired, this report reflects a different attitude, with people wanting to continue to challenge themselves well beyond the traditional retirement age. Indeed, many Nevertirees prefer to be actively engaged and challenged and are not bound by their age with regards to continuing their working life."
While the majority of wealthy expect retirement will mean being involved in some type of work, attitudes are also shifting in terms of when to retire. For 63% of U.S. wealthy, "simply reaching the normal age to retire" is not at all important in determining when they stop working.
Developing Countries Come to the Global Economy’s Rescue
They account for half of global growth and will surpass economic size of developed nations by 2015
September 27, 2010--While the rich world puts its house in order, developing countries are becoming a new engine of global growth and a pulling force for advanced economies, says a new book by World Bank economists.
According to The Day After Tomorrow: A Handbook on the Future of Economic Policy in the Developing World, almost half of global growth is currently coming from developing countries. As a group, it is projected that their economic size will surpass that of their developed peers in 2015.
“Developing countries have come to the global economy’s rescue,” said Otaviano Canuto, World Bank Vice President for Poverty Reduction and Economic Management (PREM), and co-editor of the book. “They are the new locomotives of growth which will move global growth forward while high-income countries remain stagnant.”
According to the publication, growth in developing countries is estimated to reach 6.1 percent in 2010, 5.9 percent in 2011, and 6.1 percent in 2012, while corresponding figures are 2.3 percent, 2.4 percent, and 2.6 percent for high-income countries. These diverging growth prospects continue in the medium term. Five factors account for it: faster technological learning, larger middle- classes, more South-South commercial integration, high commodity prices, and healthier balance sheets that will allow borrowing for infrastructure investment.
“The economic horizon of the developing world is promising,” said Marcelo Giugale, World Bank’s Director for Poverty Reduction and Economic Management in the Latin America and Caribbean Region, and co-editor of the study. “The rebalancing of global growth toward a multiplicity of engines will give the developing countries new relevance. It will also change their policy agendas: on average, economic management will be stronger, governments will be better, and the beginning of the end of poverty will be within reach.”
view The Day After Tomorrow: A Handbook on the Future of Economic Policy in the Developing World
Top 25 Financial Sectors to Get Mandatory IMF Check-Up
Stability part of voluntary Financial Sector Assessment Program now mandatory
25 biggest, most interlinked financial sectors to get IMF review every five years
Decision strengthens, integrates IMF’s financial, economic surveillance
September 27, 2010--Economies with financial sectors that have the greatest impact on global financial stability are now required to undergo in-depth reviews of their financial health by the International Monetary Fund every five years.
The landmark decision by the IMF’s Executive Board on September 21 converts the financial stability component of the voluntary Financial Sector Assessment Program (FSAP) into a mandatory part of the IMF’s surveillance for the world’s top 25 financial sectors.
The global economic crisis laid bare the devastating economic consequences a financial crisis in one country can have on the global economy. This decision is a concrete step toward strengthening the IMF’s surveillance of those members whose financial sectors could have the biggest potential impact on global stability. It is one of the key steps taken by the Fund to modernize its surveillance mandate and modalities in light of the recent crisis, and is consistent with the commitment made by the leaders of the Group of 20 advanced and emerging economies at the Washington Summit in November 2008 to subject their financial sectors to greater scrutiny.
Towards investment clarity on controversial weapons
Could non-compliance with prohibition of controversial weapons be a problem for institutional investors?
September 27, 2010--In 2004, Belgium was the first country to introduce legislation explicitly prohibiting the financing of anti-personnel mines, a weapon banned under the 1997 Mine Ban Treaty. Since then, Belgium has progressively extended its prohibition to cover other controversial weapon categories, including cluster munitions, ahead of the signing of the international Convention on Cluster Munitions in late 2008, and depleted uranium ammunition.
A proposal to extend the prohibition to also cover incendiary weapons with white phosphorus is now under discussion. However, the Belgian government has provided little guidance to investors regarding what is required to be in compliance with the law. Similar financing prohibitions are being discussed across Europe, with Ireland and Luxembourg having already introduced financing prohibitions on anti-personnel mines and cluster munitions. Also, a significant number of investors have taken action to address concerns regarding controversial weapons.
S&P launches website to help pension funds better understand ratings process
September 24, 2010--Standard & Poor's has launched a website to help pension funds and plan sponsors better understand how the company arrives at its ratings.
The free website provides articles, videos, podcasts and educational guides on what credit ratings are – "and what they are not" – the processes by which S&P produces ratings and how those ratings have performed over time.
Over the last two years, investors have consistently called for more transparency about how S&P determines its ratings, according to Bruce Schachne, vice-president of market development.
RiskMetrics founder Berman leaves MSCI
September 24, 2010--Ethan Berman, the founder and former Chief Executive of RiskMetrics, is to retire from the company’s new owner MSCI, the index group, according to an internal letter seen by Responsible-Investor.com.
Berman, who had an advisory role following MSCI’s $1.55bn acquisition of RiskMetrics, had been expected to depart at the end of the fourth quarter. But the rapid integration of the two companies means Berman has brought forward his plans.
September 2010 “Market’s Measure” Preliminary Report - A Monthly Report From Dow Jones Indexes On The Performance Of U.S., European, Asia And Other Global Stock Market Indexes
September 23, 2010--Dow Jones Industrial Average Posts 7.24% Gain in September, European Stocks Gain 9.71%, Asia Rises 7.23% and World Equities Rise by 7.74%
Basic Materials Sector Posts Biggest Gain for September in Europe
Utilities Sector Posts Narrowest Gain for September in U.S., Europe, Asia & Worldwide
As of September 22 the Dow Jones Industrial Average rose 7.24% in September, closing at 10739.31. Stock market indexes in Europe, Asia and globally were up in September, according to preliminary monthly figures from global index provider, Dow Jones Indexes.
The Dow Jones Industrial Average rose 7.24% in September, closing at 10739.31Year-to-date, the index is up 2.98%.
The Dow Jones Europe Index rose 9.71% in September to 254.85. So far this year, the index is down 3.56%.
The Dow Jones Asian Titans 50 Index rose 7.23% in September to 132.78. So far this year, the index is down 1.11%.
The Dow Jones Global Titans 50 Index rose 7.74% in September, closing at 164.35. Year-to-date, the index is down 5.35%.
SEPTEMBER 2010 Sector Winners and Losers
In the U.S., the Dow Jones U.S. Technology Index was the biggest winner in September, posting a 10.50% gain. The Dow Jones U.S. Utilities Index posted the narrowest gain, up 2.57%.
In Europe, the Dow Jones Europe Basic Materials Index posted the biggest gain, climbing 13.84%. The Dow Jones Europe Utilities Index had the narrowest gain, up 5.81%.
In Asia, the Dow Jones Asia/Pacific Basic Materials Index posted the biggest gain, rising 10.58%. The Dow Jones Asia/Pacific Utilities Index posted the narrowest gain, up 1.64%.
Globally, the Dow Jones World Automobiles & Parts Titans Index had the best performance, climbing 11.75%. The Dow Jones World Utilities Titans Index posted the narrowest gain, up 3.48%.
Growth to Reaccelerate for Remainder of 2010, Barclays Capital Says
“Global Outlook” research forecast sees easy monetary policy and renewed economic growth favouring risky assets
September 23, 2010--With monetary policy expected to remain extremely easy and the global economic recovery intact, financial market conditions are favourable for investors, Barclays Capital today said in its latest flagship quarterly research publication, Global Outlook: Nothing More Than a Pause. As indicated by the title, Barclays Capital expects the recent mid-cycle slowdown to be followed by a pickup in growth.
While we do not expect growth to reach the pace of the initial post-recession phase, easy monetary conditions are working across global financial markets, and it is simply a matter of time before that provides a lift to real activity,” said Larry Kantor, Head of Research at Barclays Capital. “Emerging markets should continue to outperform developed markets, and we see the massive underperformance of equities relative to credit nearing an end.”
Additional themes of Barclays Capital’s Global Outlook include:
Underperformance of developed markets relative to emerging markets is likely to weigh on developed market currencies
In Asia, China slowdown concerns have abated, and growth in rest of region remains strong
In the US, economic growth should be modestly above-trend for remainder of year, though policy risks remain critical to market performance
In Europe, improved economic data and sensible policy actions have reduced market risks.
The IMF-FSB Early Warning Exercise - Design and Methodological Toolkit
September 23, 2010--Summary:
The Early Warning Exercise (EWE) draws together a combination of analytical techniques, practical experience, seasoned judgment and unique databases in order to assess the potential consequences associated with economic and financial tail risks. There are several key features of the exercise. First, the exercise aims to help prevent the occurrence of financial crises and to limit their potential damage, not to predict the timing of crises.
Second, coverage is fairly comprehensive, including both advanced and emerging economies. Third, the EWE is based on rigorous analysis and cutting-edge techniques, but it uses a holistic approach, drawing also various other tools rather than relying on a single crisis model. Fourth, it combines empirical analysis with forward-looking thinking, based on inputs from key policymakers and academics, in-depth real-world knowledge from practitioners, and seasoned judgment from IMF experts. The primary purpose of the EWE is to identify as early as possible the buildup of underlying vulnerabilities that predispose a system to a crisis, so that corrective policies can be implemented and contingency plans put in place.
view the The IMF-FSB Early Warning Exercise - Design and Methodological Toolkit
