Europe ETF News for the Past Year
BlackRock launches five climate transition ETFs in Europe
June 25, 2024--Each of the Irish-domiciled Ucits funds will have a different geographic focus
BlackRock has rolled out a five-strong range of climate transition exchange traded funds aiming to provide investors with access to "companies leading in the transition to a low-carbon economy".
The Ireland-domiciled iShares MSCI Climate Transition Aware Ucits ETFs are classified under Article 8 of the EU's Sustainable Finance Disclosure Regulation.
Each of the five ETFs has a different geographic focus: global, Europe, US, Japan, and the European economic and monetary union.
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Source: ft.com
The implications of the European Union's new fiscal rules
June 20, 2024--Executive summary
European Union countries are required by the EU Treaty to keep their budget deficits within 3 percent of GDP, and their public debt within 60 percent of GDP. A new framework to enforce these rules is based on country-specific debt sustainability analyses (DSA) and uses a single indicator, a measure of public expenditure, as the annual fiscal policy target. These changes are welcome.
To assess the sustainability of public finances, it is much better to focus on the likely evolution of the debt path than to rely on simple numerical rules. Public expenditures net of changes to tax policy are a far better target for fiscal policy than the deficit, since they are under the control of the government and cannot give rise to pro-cyclical fiscal policy (excess spending in good times, fiscal cuts in bad times). These features could increase the framework’s efficiency and improve compliance.
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Source: bruegel.org
Europe's New ESG Rules Spark Questions About What Sustainable Investing Looks Like
June 20, 2024--To comply with the EU's new rules, investment firms would have to change the name of thousands of funds or sell off $40 billion in assets.
The European Union's move to tighten rules for sustainable investing will put two-thirds of Europe's so-called ESG funds on notice, forcing thousands of them to either sell off $40 billion in assets or change their names in a way that more accurately and transparently reflects their holdings.
Last month, the European Securities and Markets Authority (ESMA) initiated a long-awaited process to tackle contradictions and confusion in the world of sustainable investing. This move highlights the long-standing debate over whether stocks such as fossil fuel companies should be included in ESG-environmental, social and governance-funds.
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Source: insideclimatenews.org
Europe's mutual funds continue to bleed heavily
June 17, 2024--Investors have pulled €258bn from actively managed equity funds since the start of 2022
Europe's active asset managers face an unprecedented challenge in dealing with continued mutual fund outflows.
Investors have pulled €258bn from actively managed equity funds since the start of 2022, with a further €140bn withdrawn from multi-asset and alternative funds, Morningstar data shows.
However, passive product providers have prospered from investor demand, with inflows to index and exchange traded equity funds totalling €256bn.
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Source: ft.com
Forecasts for the UK economy: July 2024
July 17, 2024--A comparison of independent forecasts for the UK economy in July 2024.
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Source: gov.uk
