Global ETF News Older than One Year
IMF Working paper-Financial Resource Curse in Resource-Rich Countries
July 20, 2017--Summary:
Why do commodity-dependent developing countries have typically lower levels of financial development than their peers? The literature has proposed many possible explanations, but it typically does not dwell on the deep mechanisms that drive such an outcome.
In this paper, we argue that the main cause is the shocks in commodity prices. We test the hypothesis on 68 commodity-rich developing countries between 1980 and 2014, and we find strong evidence of the financial development resource curse through the channel of commodity price shocks, after controlling for other explanations found in the literature. The findings are robust to the different types of commodities, the nature of the shocks, and various indicators of financial development. We also show how the impact of these shocks can be mitigated through good quality of governance.
Source: IMF
Insight into the Economic Factors at Play for Retirees Around the World
July 19, 2017--In the latter half of the 20th Century, millions of retirees were able to construct a stable base for income from the three pillars of personal savings, employer pensions and government benefits.
But now, early in the 21st Century, the balance has shifted. In 2017, more than three-quarters of individuals worldwide now say they believe the responsibility for funding retirement is increasingly landing on their shoulders.1
view the The economics of retirement Supplement to the 2017 Natixis Global Retirement Index
view the 2017 Natixis Global Retirement Index report
Source: Natixis Global Asset Management
IMF Working paper-On Swing Pricing and Systemic Risk Mitigation
July 18, 2017--Summary:
Swing pricing allows a fund manager to transfer to redeeming or subscribing investors the costs associated with their trading activity, thus potentially discouraging large flows.
This liquidity management tool, which is already used in major jurisdictions, may also help mitigate systemic risk. Here we develop and apply a methodology to investigate whether swing pricing does in fact help dampen flows out of funds, especially during periods of market stress. Drawing on evidence of first-mover advantage within a group of 'swinging' corporate bond funds, we provide policy considerations for enhancing the tool's effectiveness as a systemic risk mitigant.
view the IMF Working paper-On Swing Pricing and Systemic Risk Mitigation
Source: IMF
IMF Working paper-Basel Compliance and Financial Stability: Evidence from Islamic Banks
July 18, 2017--Summary:
The paper provides robust evidence that compliance with Basel Core Principles (BCPs) has a strong positive effect on the Z-score of conventional banks, albeit less pronounced on the Zscore of Islamic banks.
Using a sample of banks operating in 19 developing countries, the results appear to be driven by capital ratios, a component of Z-score for the two types of banks. Even though smaller on Islamic banks, individual chapters of BCPs also suggest a positive effect on the stability of conventional banks. The findings support the effective role of BCP standards in improving bank stability, whose important implications led to the Islamic Financial Services Board (IFSB) publication of new recommendations in 2015 to bring BCP standards in line with the Core Principles for Islamic Finance Regulation (CPIFRs) standards. Our findings suggest that because Islamic banks are benchmarked closely to BCPs, the implementation of CPFIRs should also positively affect their stability.
Source: IMF
Clean Energy Transition Will Increase Demand for Minerals, says new World Bank report
July 18, 2017--A new report released today by the World Bank highlights the potential impacts that the expected continuing boom in low-carbon energy technologies will have on demand for many minerals and metals.
Using wind, solar, and energy storage batteries as key examples of low-carbon or "green" energy technologies, the report, "The Growing Role of Minerals and Metals for a Low-Carbon Future" examines the types of minerals and metals that will likely increase in demand as the world works towards commitments to keep the global average temperature rise at or below 2°C.
view the World Bank The Growing Role of Minerals and Metals for a Low Carbon Future report
Source: World Bank
New UK listing rule to attract Aramco and beyond
July 17, 2017--Proposed changes to Britain's listing regime are likely to attract a series of state-backed companies to London's stock markets but as Silvia Antonioli reports, the new rules might lower the quality of companies on its stock exchange and hurt minority shareholder.
Source: Zawya.com
ULTUMUS-Global ETF Monitor
July 17, 2017--Europe
iShares has gained an edge in the European market, with the listing of a new low volatility ETF in Germany, the iShares Edge S&P 500 Minimum Volatility UCITS ETF (IS31)..
German banking titan Commerzbank will be launching a new note into Germany on Wednesday
Americas
ProShares has launched three new funds in the US, the ProShares UltraShort S&P500 (SDS), the ProShares Ultra VIX Short-Term Futures ETF (UVXY) and the ProShares VIX Short-Term Futures ETF(VIXY)...
Source has listed a new energy ETF in the United States, SRRCF which tracks the S&P Select Sector Capped 20% (Energy) Net Total Return Index...
Asia
Samsung has listed two new energy trackers in Korea (530033, 530032), which target energy infrastructure. 530033...
Taiwan's ETF market got two funds larger, with Cathay listing two new low volatility ETFs, the 00701 and 00702...
Source: ULTUMUS-Financial Data Management
ETF Securities Weekly Flows Analysis Gold to benefit from a more dovish Fed
July 17, 2017--Gold, platinum and silver ETPs to benefit further from a more dovish Fed.
Industrial metals ETPs saw US$31.5mn of inflows amid growing economic activity in the US and Europe and a potential surge in global infrastructure spending.
Inflows into oil ETPs returned after a one-week break as US oil inventories decline further.
Outflows from long EUR ETPs on high futures positioning and long USD ETPs on Yellen's testimony.
Gold, platinum and silver ETPs to benefit further from a more dovish Fed. Last week saw US$82 mn inflows in precious metals ETPs, led by gold (US$46.8mn), then silver (US$ 23.9mn), platinum (US$6.8mn) and the basket (US$4.1mn).
Source: etfsecurities.com
Global shift into alternative assets gathers pace
July 16, 2017--Investors turn to property, infrastructure, private equity and hedge funds.
Source: FT.com
DECPG Global Weekly-July 14, 2017
July 14, 2017--TAKING STOCK
U.S. producer and consumer price inflation slowed in June; retail sales fell
Euro Area industrial production rose more than expected in May
Japan core machinery orders contracted further in May
China consumer price inflation held steady in June; external trade remained strong
EMDE bond sales rose strongly in the first half of 2017
Source: World Bank
