Global ETF News Older than One Year
Cheap tracker funds trounce private equity
December 12, 2020--Low cost index monitoring funds beat the returns of personal fairness investments over the previous 20 years, in response to a survey of pension schemes.
The findings by CEM Benchmarking, a Toronto-based consultancy, elevate extra questions on claims of superior efficiency by personal fairness.
CEM examined the web returns (after charges) of 330 pension funds and different giant institutional buyers within the US, Canada and remainder of the world between 1996 and 2018.
Source: FT.com
BlackRock vows to back more shareholder votes on climate change
December 10, 2020--World's largest asset manager has come under increasing pressure to wield its influence
BlackRock has vowed to back more shareholder resolutions on climate and social issues at annual meetings, as the world's largest asset manager faces growing pressure to use its clout to change companies' behaviour.
The $7.8tn asset manager has faced years of criticism after overwhelmingly backing management rather than voting for shareholder proposals on issues such as climate change.
Source: FT.com
BlackRock promises to support more shareholder votes on climate change
December 10, 2020--BlackRock has pledged to support more shareholder resolutions on climate and social issues at annual meetings, as the world's largest asset manager faces increasing pressure to use its influence to change corporate behavior.
The $ 7.8 billion asset manager has known for years critical after overwhelmingly supporting management rather than voting for shareholder proposals on issues such as climate change companies.
Source: FT.com
From Vaccine Delivery to Remote Working, Experts Predict Internet-Enabled Devices Will Shape Global COVID-19 Recovery
December 9, 2020--Increased dependency on technology during the COVID-19 pandemic highlights the enormous benefits and new challenges posed by our connected world
37 world-leading initiatives in six continents have come together as part of a multi-year effort to shape the development of the internet of things
As the world awaits a COVID-19 vaccine, attention is focused on how to track and safely deliver these temperature-sensitive vaccines to billions of people. Sensors and internet-enabled devices are expected to play a central role in this process, much as they have throughout the pandemic.
COVID-19 has accelerated global trends towards remote working, telehealth, distance learning and automation, according to a new report by the World Economic Forum in collaboration with the Global Internet of Things (IoT) Council and PwC. The pandemic is also boasting adoption of wearable technologies like fitness trackers and smart-home devices. As the dependency on connected technologies increases, so do the associated risks and the need for good governance.
view the World Economic Forum State of the Connected World 2020 Edition
Source: World Economic Forum
Navigating Capital Flows-An Integrated Approach
December 9, 2020-In a continuous effort to help countries manage volatile cross-border capital flows, the IMF has taken a major step toward a new analytical macroeconomic framework that can guide appropriate policy responses.
The work reflects evolving thinking on macroeconomic policy and will feed into the upcoming review of the IMF's Institutional View on the Liberalization and Management of Capital Flows, which currently guides the Fund’s advice and assessments of members' policies.
While flexible exchange rates can act as a useful shock absorber in the face of capital flow volatility, this mechanism does not always offer sufficient insulation, in particular when access to global capital markets is interrupted or market depth is limited.
Source: IMF
ETF inflows surge to beat previous monthly record by 14.5%
December 9, 2020--Industry is on course for peak year as Joe Biden's victory and vaccine news lift sentiment
Exchange traded funds attracted record inflows of $121bn in November, a jump of 14.5 per cent on the previous best month for new business, as Joe Biden's victory in the US presidential election and successful developments for coronavirus vaccines unleashed a surge of new investment.
The huge monthly haul brings net global inflows in the first 11 months of this year to $659.3bn, 15.4 per cent more than the $571.1bn gathered over the same period in 2019, according to ETFGI, a London-based consultancy
Source: FT.com
A Greener Future Begins with a Shift to Coal Alternatives
December 8, 2020--As the world economy emerges from the COVID-19 crisis, the consumption of coal is expected to recover from its sharp decline during the pandemic.
Demand for coal remains strong and helps to fuel economic development in emerging markets.
Yet many countries, seeking a more sustainable future, have been taking steps to reduce their dependence on fossil fuels, especially coal. Obstacles to their efforts have proven difficult to overcome, not least because people who work in the coal industry depend on it for their livelihoods-but the right policy levers can help.
Source: IMF
Vaccine news spurs valuations, eclipsing uncertain outlook: BIS Quarterly Review
December 7, 2020--Markets rebounded in November as positive vaccine news and the US election outcome boosted sentiment, although concerns about the daylight between valuations and the economic outlook persisted.
Government bond yields stayed unusually low supported by accommodative monetary policy, sustaining a search-for-yield environment.
The relative performance of EME currencies partly reflects the structure of production in the respective economies.
According to the BIS Quarterly Review, risky assets received a fillip in early November from positive vaccine news and the US election outcome, approaching and, in some cases, surpassing pre-pandemic levels. Optimism about business conditions and continued policy support also fuelled markets' buoyancy.
At the same time, the Review reports that a divergence in the assessment of corporate vulnerabilities appeared to be emerging. On the one hand, credit spreads in advanced economies compressed further, approaching pre-pandemic lows. On the other, banks tightened lending standards throughout the review period. Investors' search for yield and the specifics of policy support appeared to underpin these contrasting developments.
Source: BIS
Cyber Risk is the New Threat to Financial Stability
December 7, 2020--Many of us take for granted the ability to withdraw money from our bank account, wire it to family in another country, and pay bills online.Amid the global pandemic, we've seen how much digital connection matters to our everyday life. But what if a cyberattack takes the bank down and a remittance doesn't go through?
As we become increasingly reliant on digital financial services, the number of cyberattacks has tripled over the last decade, and financial services continue to be the most targeted industry. Cybersecurity has clearly become a threat to financial stability.
Given strong financial and technological interconnections, a successful attack on a major financial institution, or on a core system or service used by many, could quickly spread through the entire financial system causing widespread disruption and loss of confidence.
Source: IMF
Fintech Market Reports Rapid Growth During COVID-19 Pandemic
December 3, 2020--The fintech market has continued to help expand access to financial services during the COVID-19 pandemic-particularly in emerging markets-with strong growth in all types of digital financial services except lending, according to a joint study by the World Bank, the Cambridge Centre for Alternative Finance at the University of Cambridge's Judge Business School, and World Economic Forum.
Access to affordable financial services is critical for poverty reduction and economic growth. For poor people, especially women, access to and use of basic financial services can raise incomes, increase resilience, and improve their lives. Fintech innovations are helping reduce the cost of providing services, making it possible to reach more people, and reducing the need for face-to-face interactions, essential for keeping up economic activity during the pandemic.
view the World Bank The Global Covid-19 FinTech Market Rapid Assessment Study report
Source: World Bank
