Global ETF News Older than One Year
IOSCO consults on guidance to address conflicts of interest in the equity capital raising process
February 21, 2018--The Board of the International Organization of Securities Commissions (IOSCO) today is proposing guidance to help its members address conflicts of interest and associated misconduct risks that may arise during the equity capital raising process.
Conflicts of interest and associated conduct risks stemming from the role of intermediaries can threaten the integrity and efficiency of equity capital raising, damage investor confidence and undermine capital markets as an effective vehicle for issuers to raise funding. To help regulators identify and address these issues, IOSCO has issued today the consultation report Conflicts of interest and associated conduct risks during the equity capital raising process.
Source: IOSCO
Russell Investments unveils more meaningful ESG scoring
February 20, 2018--Cutting-edge research identifies financially material ESG factors for investors
Initial research suggests the new metric could guide investment decisions
Global asset manager Russell Investments has created another research breakthrough in ESG (environmental, social & governance) investing with a material ESG score, which more accurately identifies ESG factors that could impact the financial performance of publicly-traded companies.
The research findings were released today in a paper titled Materiality Matters: Targeting ESG issues that impact performance. The paper presents evidence that these material ESG scores are better predictors of stock return compared to traditional, non-material ESG scores.
"Our new material metric allows ESG investors to differentiate between companies in a more precise way than a traditional ESG score," said Scott Bennett, director, equity strategy and research, at Russell Investments and an author of the research paper.
Source: Russell Investments
The Eurekahedge Report-February 2018
February 20, 2018--This month, The Eurekahedge Report provides an overview on the US$95 billion Islamic funds industry and the US$321 billion UCITS hedge fund industry along with its corresponding infographic summary.
Alongside our coverage of monthly returns, performance and asset flows, this month's strategy profile revisists the performance of hedge funds utilising artificial intelligence and machine learning theory in their trading process, focusing on the overall risk-return profile of artificial intelligence (AI) hedge funds as captured by the Eurekahedge AI Hedge Fund Index.
Source: Eurekahedge
Deutsche Bank to Cut at Least 250 Banker Jobs
February 19, 2018--Reductions are said to continue, could rise to more than 500
CFO has urged more cost discipline after target was abandoned.
Deutsche Bank AG has started cutting at least 250 jobs globally at its corporate and investment bank as Germany's largest lender seeks to keep a lid on expenses amid a sustained slide in the securities unit, according to people with direct knowledge of the matter.
Source: Bloomberg
Global dividends hit record $1.3tn in 2017
February 19, 2018--Global dividends reached record levels in 2017, bolstered by strong global economic growth and a revival in US payouts as business confidence returned following political uncertainty in 2016.
Source: FT.com
ETF Securities Weekly Flows Analysis-Profit-taking leads to outflows in Gold ETPs
February 19, 2018--Agricultural basket ETPs received the largest inflows since inception.
Inflows into industrial metal basket ETPs rebound, reversing the prior week's trend of outflows.
Gold ETPs suffer US$103.5mn redemptions on the back of profit-taking.
Agricultural basket ETPs received the largest inflows since inception, totalling US$54.7mn surpassing the previous high achieved only four weeks ago. After a lacklustre performance over the prior year with the exception of cotton, a majority of agricultural commodities are trading higher in 2018 owing to severe weather conditions. Wheat prices have been benefiting from the ongoing dry spell in key US growing areas that is hampering the development of the dormant winter wheat. While the severe dry conditions in Argentina are supporting soybean and soybean meal prices higher.
Source: etfsecurities.com
Sound Practices: implications of fintech developments for banks and supervisors issued by the Basel Committee
February 19, 2018--The Basel Committee on Banking Supervision today published its Sound Practices on the implications of fintech developments for banks and bank supervisors.
The paper assesses how technology-driven innovation in financial services, or "fintech", may affect the banking industry and the activities of supervisors in the near to medium term.
The paper is based on the analysis of various potential future scenarios and draws on surveys with bank supervisors. Five stylised scenarios describing the potential impact of fintech on banks were identified as part of an industry-wide scenario analysis:
The better bank: modernisation and digitisation of incumbent players
The new bank: replacement of incumbents by challenger banks
Source: BIS
US CFTC and UK FCA Sign Arrangement to Collaborate on FinTech Innovation
February 19, 2018--The US Commodity Futures Trading Commission (CFTC) and the UK's Financial Conduct Authority (FCA) have today signed an arrangement that commits the regulators to collaborating and supporting innovative firms through each other's financial technology (FinTech) initiatives-LabCFTC and FCA Innovate.
"The FCA's Project Innovate is the gold standard for thoughtful regulatory engagement with emerging technological innovation," said CFTC Chairman J. Christopher Giancarlo.
Source: CFTC.gov
BlackRock bulks up research into artificial intelligence
February 19, 2018--BlackRock is setting up a new centre dedicated to research in artificial intelligence, underscoring the heightened interest among asset managers in how machine learning can revolutionise many facets of the investment industry. The world's biggest investment group, with $6.3tn of assets under...
Source: FT.com
Thomson Reuters-Investors Pad the Coffers of Equity Funds for the First Month in 11, While Equity ETFs Make It 20 in a Row
February 16, 2018--For the first month in 11 conventional mutual fund investors padded the coffers of equity funds, while being net purchasers of fixed income funds for the thirteenth month in a row. Authorized participants (APs-those investors that actually create and redeem ETF shares) remained fully engaged, injecting a whopping $58.6 billion into equity ETFs, with U.S. Diversified Equity (USDE) ETFs (+$27.4 billion) outdrawing their World Equity ETF counterparts (+$20.0 billion).
Despite strong January returns, mutual fund investors continued to turn their backs on USDE Funds, redeeming some $21.7 billion for the month, while they padded the coffers of World Equity Funds, injecting $17.4 billion. On the fixed income side of the equation the focus of mutual fund investors and APs continued to be aligned, with conventional bond funds attracting $46.9 billion net for January and bond ETFs drawing in $9.8 billion.
Source: Thomson Reuters
