Global ETF News Older than One Year
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.
Source: Barclays Capital
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
Source: IMF
Asset managers set to consolidate and increase scale, says State Street
September 23, 2010--Fewer and bigger players applying capabilities across a broad range of asset classes and strategies to deliver solutions rather than products – is the future of Europe's asset management industry as it goes through "unprecedented" change, according to State Street's latest VisionFocus.
Consolidation has already been driven by banks selling their asset management divisions, as regulators, boards and shareholders pressure them to return to their core businesses, and they take the opportunity to monetise the spread in earnings multiples between themselves and other public-listed asset managers.
Source: IP&E
FTSE Announces 2010 Country Classification
Czech Republic, Malaysia and Turkey promoted to
Advanced Emerging markets
September 23, 2010--FTSE Group
(“FTSE”), the award winning global index provider, today announces the results of its 2010 Country Classification Annual Review.
The FTSE Country Classification Annual Review, carried out every September, is the process by which global equity markets are classified as Developed, Advanced Emerging, Secondary Emerging or Frontier within the FTSE Global Equity Index Series.
Working with independent practitioner committees, made up of senior industry experts and index users, FTSE has designed a sophisticated approach for determining the investability status of global markets. Using this approach, global markets which meet the economic conditions of a developed or emerging economy are measured against the ‘Quality of Markets Assessment’ criteria developed in consultation with the investment community (Details of the criteria are available at www.ftse.com/country).
This is further supported by an in-depth engagement programme with the markets being assessed within the Global Equity Index Series. As a result, the FTSE Country Classification methodology provides a transparent and consistent assessment of the markets of over 70 countries with respect to the quality of their investment infrastructure for international investors.
As a result of the 2010 annual review, the FTSE Policy Group has approved the following changes:
Czech Republic – Promoted from Secondary Emerging to Advanced Emerging;
· Malaysia – Promoted from Secondary Emerging to Advanced Emerging; and
· Turkey – Promoted from Secondary Emerging to Advanced Emerging
Source: FTSE
Policymakers turning blind eye to problem of deflation, says ING
September 22, 2010--Policymakers for the world's larger economies have turned a blind eye to the very real risk of deflation, according to ING Investment Management.
Valentijn van Nieuwenhuijzen, head of fixed income and economics at ING IM, said the chance of deflation occurring – triggered by a double-dip recession in the US, an oil-price spike or a similar "negative shock" – was uncomfortably large.
"What policymakers should do – and what I fear they are not doing aggressively enough – is eliminate the risk that deflation will materialise on a two to three-year horizon," he said.
Source: IP&E
UN body calls on all institutional investors to disclose RI stance
UNCTAD examines RI practices at world’s largest pension funds
September 22, 2010--The United Nations Conference on Trade and Development (UNCTAD) has called on all institutional investors to formally articulate their stance on responsible investment.
UNCTAD noted how there are now two “different and distinct” groups of pension funds worldwide – the half that report no RI activity and the half that reports at least some activity.
The comments follow its analysis of how responsible investment is implemented at the world’s 100 largest pension funds, with combined assets under management of $8.6trn (€6.5trn).
UNCTAD found almost half the world’s largest funds disclose at least one or more indicators based on the United Nations Principles for Responsible Investment. But no evidence could be found of RI practices at 51 of the top 100 funds, representing $3.4trn assets (or 39%) of the 100 funds’ total AUM.
view the Investment and Enterprise Responsibility Review
Source: Responsible Investor
Basel III is priming big banks to work the system
September 21, 2010--The slow implementation period for the new Basel III capital regime, which will not be fully phased in until 2019, means that the world cannot afford to have another large-scale banking crisis for nine years. Can we rely on the bankers to do the decent thing and refrain from jumping the gun?
Merely to formulate the question invites a cynical response, in the light of recent history. Yet a longer historical perspective provides modest reassurance, in that the gap between big banking crises since the 1970s has usually been quite long.
Source: FT.com
Industry Review: September 2010-The Eurekahedge Monthly
September 21, 2010--Highlights from this month’s report are as follows:
Hedge funds are ahead of global markets by 9.2% August YTD.
Strong launch activity pushed the number of Asian hedge funds to a new record historical high of 1,278.
Global distressed debt hedge funds are up 8.40% August YTD.
Assets in UCITS III hedge funds crossed US$130 billion.
North American hedge funds grew by US$12.8 billion in August (1.21%) and witnessed the seventh consecutive month of net positive asset flows.
Source: Eurekahedge
Eurex Welcomes Five New Members out of Taiwan
September 21, 2010-- The international derivatives exchange Eurex announced today that it has admitted the first five exchange members based in Taiwan to its international distribution network. Concord Futures Corp., KGI Futures Co., Polaris MF Global Futures Co., SinoPac Futures Corp., and Ta Chong Futures Co. were connected this month. The admission of the new, additional members from Taiwan increases the number of Eurex’s Asian member firms to 19 across five countries. Trading volume originated by Eurex’s Asia-based members has doubled in the first half of 2010 year-on-year.
"We are very pleased to welcome the first local brokers from Taiwan at Eurex, and we look forward to providing them with new trading opportunities enabling them to diversify their trading strategies. The recently signed Economic Cooperation Framework Agreement (ECFA) between Taiwan and China should further support the Taiwanese economy and its capital market”, said Michael Peters, member of the Eurex executive board. “Through the connection to our global distribution network, our new customers now have direct and reliable access to our well-diversified product suite and our international trading network.” With the new admitted members, Eurex now serves around 420 members in 27 countries.
In July 2010, Eurex introduced a “Trader Training Program” for professional traders in Taiwan, as part of its “Training & Education Initiative Asia”. The program is the first of its kind in Taiwan and is targeted towards new professional traders. Significant parts of the trainings have been the setup and functioning of the European financial markets and the efficient use of exchange-traded derivatives.
Source: Eurex
Recession caused global decrease in economic freedom but Hong Kong remains number one overall in economic freedom rankings
September 20, 2010--In the wake of the global recession, the average level of economic freedom around the world dropped for the first time in decades, according to a new study released today by the Fraser Institute, Canada’s leading public policy
think-tank.
This year’s report shows that economic freedom experienced its first global downturn in a quarter century, with the average score falling to 6.67 in 2008 (the most recent year for which data is available) from 6.74 in 2007. Of the 123 countries with economic freedom rankings dating back to 1980, 88 (71.5 per cent) saw their rankings decrease while only 35 (28.5 per cent) recorded increases. P>“In response to the economic decline of 2008, many countries opted for perverse credit expansion and regulatory policies, damaging economic freedom and hindering future growth,” said Fred McMahon, Fraser Institute vice-president of international policy research.
“Even in the wake of recession, the quality of life in nations with free and open markets is vastly superior to that of countries with government
view Economic Freedom of the World: 2010 Annual Report
Source: Freethe world.com
