EDHEC-Risk Institute paper analyses the impact of transaction costs on the performance of systematic equity strategies
March 16, 2017--A new EDHEC-Risk Institute publication entitled "Smart Beta Replication Costs," conducted as part
of the Amundi research chair at EDHEC-Risk Institute on "ETF, Indexing and Smart Beta Investment Strategies", provides an explicit estimate of the costs applied to a range of Smart Beta strategies
and analyses the impact of different implementation rules or stock universes.
A reasonable expectation from an investor's perspective is that providers should disclose the estimated
level of transaction costs generated by their strategies so as to allow for information on net returns.
However, providers often fail to make explicit reference to transaction costs and simply report gross
returns, leaving it to other market participants to figure out the exact amount of transaction costs.
view the "Smart Beta Replication Costs paper
Source: EDHEC-Risk Institute
Lyxor launches ETF tracking UK inflation expectationsLyxor launches ETF tracking UK inflation expectations
March 15, 2017--European ETF provider Lyxor has launched a new fund providing investors with exposure to UK inflation expectations.
The Lyxor UK£ 10Y Inflation Expectations UCITS ETF (LON: UKBE) targets the spread between traditional bond yields and those of inflation-linked bonds, thus offering a pure play on inflation expectations without exposing the investor to changing interest rates.
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Source: etfstrategy.co.uk
First green bond lists on Borsa Italiana
March 13, 2017--Borsa Italiana launches new green bond segment
ENEL FINANCE INTERNATIONAL N.V. €1.25 billion green bond issue is the first to list on the new Italian segment
Builds on LSEG's commitment to developing a comprehensive green product offering
Borsa Italiana launches a new segment on ExtraMOT PRO dedicated to the issuance of green and social bonds.
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Source: London Stock Exchange Group
Sale of stake in Deutsche AM puzzles analysts
March 13, 2017--German bank plans to raise about €2bn by selling parts of its asset management unit.
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Source: FT.com
ESMA publishes first set of CSDR Q&As
Monday 13, 2017--The European Securities and Markets Authority (ESMA) has published its first set of Questions and Answers (Q&As) on the CSDR, this follows the publication in the Official Journal of the CSDR Level 2 package (except for settlement discipline which are still pending).
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Source: ESMA
One Of Bitcoin's Biggest Funds Just Brought On An Etf Industry Power Player: Global Advisors Names ETF Industry Veteran Laurent Kssis As Interim Managing Director Of Bitcoin ETN Issuer, XBT Provider AB
March 13. 2017-Global Advisors (Jersey) is announcing ETF industry veteran, Laurent Kssis, as interim managing director of XBT Provider AB: issuer of world's only publicly listed bitcoin Exchange Traded Note (ETN).
Kssis joins XBT Provider as demand for bitcoin-based financial products, especially ETFs, is at all-time highs. Global Advisors sees underserved demand in key markets globally and intends to capture it with a series of products slated for 2017 and 2018. Kssis will be integral in this pursuit.
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Source: Global Advisors
Monday Morning Memo: Are bond ETFs a driver of growth or the next troublemaker for the ETF industry?
March 13, 2017--Bonds and bond funds, despite the low-interest-rate environment, are in general one of the preferred asset types of European investors.
Therefore, it is not surprising that promoters of exchange-traded funds (ETFs) also try to get their share of this asset's growth, which also explains the growing number of bond ETFs in the European market.
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Source: Detlef Glow, Head of EMEA Research-Thomson Reuters Lipper
Deutsche Borse launches Scale All Share Index
March 13, 2017--Deutsche Börse has added the Scale All Share Index to its index offering. The index tracks the performance of the recently launched Scale segment. As an All-Share index, the Scale index describes the overall performance of all companies listed in the Scale segment for shares.
The segment was successfully launched on 1 March 2017 to facilitate the raising of capital and to provide access to investors for small and medium-sized enterprises. The Scale All Share Index is calculated in real time and available in euro as a price and performance index. All stocks in the index are equally weighted.
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Source: Deutsche Börse Group
Lyxor-Monthly European ETF Market Trends - February 2017
March 13, 2017--European ETF Market flows continued their positive trend in February 2017. Net New Assets (NNA) during this month amounted to
EUR9.4bn, nearly twice the one-year average of EUR4.9bn.
Total Assets under Management are up 7% vs. the end of 2016, reaching EUR551bn,
including a market impact of 3.9%. Both developed and emerging markets
equity and fixed income ETFs saw positive flows in a risk-on environment
supported by an upbeat picture of macroeconomic data across markets.
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Source: Lyxor
Lyxor launches GBP-hedged version of US TIPS ETF
March 10, 2017--Lyxor has unveiled the Lyxor US TIPS GBP Monthly Hedged UCITS ETF (LON: TIPH), providing access to a portfolio of US Treasury Inflation-Protected Securities (TIPS) while sheltering investors from adverse currency movements between the US dollar and the British pound.
It tracks the Barclays US Government Inflation-Linked Bond Hedged GBP Index.
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Source: etfstrategy.co.uk
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