Global ETF News Older than One Year
BlackRock ETP Landscape November 2016
December 20, 2016--INDUSTRY HIGHLIGHTS
Global ETP flows surged in November post-election to resume record year-to-date pace.
Global ETPs gathered $56.0bn in November, the best month since December 2014, following Donald Trump's surprise victory in the U.S. presidential election with flows fueled by U.S. equities.
U.S. equity flows surged in the month, garnering new monthly flow records in small-caps, financials and industrials as well as strong flows to large-caps on hopes for new stimulus and favorable policies
Fixed income remains on record year-to-date pace, with record monthly flows in U.S. TIPS funds of $2.4bn while conventional Treasuries shed ($2.0bn), dampened by prospects for higher rates in the U.S
Broad emerging markets (EM) equities and emerging markets debt shed ($3.2bn) and ($3.3bn), respectively, as the U.S. dollar strengthened
Commodity fund flows were marked by sharp outflows from gold funds of ($4.5bn)
Source: BlackRock
Use of artificial intelligence technology in financial services to grow: report
December 19, 2016--Financial services firms are beginning to deploy artificial intelligence technologies to make themselves more efficient and better than their peers-and those without a strategy should develop one now, according to a new report.
"It is the early days of AI in the financial services industry, but the technology is increasingly going to be more important to organizations to innovate and remain competitive," said the report by tech firm Narrative Science.
Source: investmentnews.com
ETF Securities Weekly Flows Analysis- Investors took record contrarian positions as the US dollar rallied
December 19, 2016--Investors cast doubt on US Dollar rally as they place US$99mn in short USD long EUR ETPs
2017 will likely continue to benefit cyclical and alternative ETPs such as copper and robotics as tail
risks decline in the US
Headwinds continue for oil and gold ETPs as oil prices remain near 6 month high while gold heads towards its lowest level in 2016
Source: etfsecurities.com
Smart beta ETFs have hedge funds in their sights
December 19, 2016--ETFs that focus on investing 'factors', or characteristics of asset classes, pose a threat.
Source: FT.com
Year in a Word: ETF
December 19, 2016--Popularity of the alternative to mutual funds has soared.
Source: FT.com
Deutsche Bank cuts ties with 3,400 clients in trading business
November 17, 2016--Deutsche Bank's (DBKGn.DE) Global Markets division will cut ties with about 3,400 clients in its debt and equities sales activities, the bank said on Friday.
Deutsche Bank will immediately cease debt sales services to some financial institutions and hedge funds as well as equity sales activities, the execution of equities trading orders and equity structuring activities for some clients, a spokesman said, citing an internal memo.
Source: Reuters
Natixis.com-Institutional Outlook: Forecasting Dynamic Changes
December 16, 2016--Institutional investors anticipate a year of dramatic change in 2017. A global wave of populism is upending conventional thinking about politics and economics. Central bank policies, which have driven investment performance for nearly a decade, are beginning to diverge
The U.S. Federal Reserve is likely to raise rates, while other central banks are challenged to scale their asset purchase programs. The upshots are concerns among institutional investors about volatility, geopolitical risk, and monetary policy, which we see them addressing using a three-part approach:
view the 2016 GLOBAL SURVEY OF INSTITUTIONAL INVESTORS report
Source: ngam.natixis.com
IMF Working paper-Inequality and Growth: A Heterogeneous Approach
December 16, 2016--Summary: The combination of stagnant growth and high levels of income inequality renewed the debate about whether a more even distribution of income can spur economic activity. This paper tests for cros-country convergence in income inequality and estimates its impact on economic growth with a heterogeneous panel structural vector autoregression model, which addresses some empirical challenges plaguing the literature.
We find that income inequality is converging across countries, and that its impact on economic growth is heterogeneous. In particular, while the median response of real per capita GDP growth to shocks in income inequality is negative and significant, the dispersion around the estimates is large, with at least one fourth of the countries in the sample presenting a positive effect. The results suggest that the negative effect is mainly driven by the Middle East and Central Asia and the Western Hemisphere across regions, and emerging markets across income levels. Finally, we find evidence that improved institutional frameworks can reduce the negative effect of income inequality on growth.
view the IMF Working paper-Inequality and Growth: A Heterogeneous Approach
Source: IMF
Lipper-A Tale of Two Cities: ETF Flows and Mutual Fund Flows Are Vastly Different in Q4
December 16, 2016--For the quarter to date through December 14, 2016, investors have collectively injected some $13.5 billion into mutual funds and exchange-traded funds (ETFs).
The headline flows numbers are a bit misleading though; equity funds, taxable bond funds, and municipal bond funds have witnessed net outflows of $4.1 billion, $12.0 billion, and $12.8 billion, respectively, while money market funds have taken in $42.4 billion.
Source: lipperalpha.financial.thomsonreuters.com
DECPG Global Weekly- December 16. 2016
December 16, 2016--TAKING STOCK
U.S. Federal Reserve raised interest rates; industrial production fell
Euro Area industrial production contracted again in October; employment growth inched up
The Bank of Japan's index of business sentiment rose for the first time in 18 months
China's retail sales, industrial production, and fixed asset investment remained robust in November
The Bank of Uganda cut its policy rate
WEEKLY INSIGHT
How Could Negative Interest Rate Policies Affect Financial Stability?
Negative Interest Rate Policies (NIRP) could pose risks to financial stability if rates go substantially below zero or if NIRP are employed for a protracted period of time. Adverse consequences of NIRP could include erosion of profitability of banks and other financial institutions, and excessive risk-taking by investors.
Source: World Bank
