Global ETF News Older than One Year
IMF-Sovereign Debt Restructuring and Growth
July 22, 2016--Summary: This paper studies the effect of sovereign debt restructurings with external private creditors on growth during the period 1970-2010.
We find that there are bad and good (or not so bad) debt restructurings for growth. While growth generally declines in the aftermath of a sovereign debt restructuring, agreements that allow countries to exit a default spell (final restructurings) are associated with improving growth. The impact can be significant. In general, three years after restructuring, growth is about 5 percent lower compared to countries that did not face restructuring over the same period. The exception is for final restructurings, which result in positive growth in the years immediately after the restructuring. Final restructurings tend to be better for growth because they reduce countries' debt, with the strongest effect for countries that exit restructurings with relatively low debt levels.
Source: IMF
IMF Working paper-Sovereign Risk and Deposit Dynamics :Evidence from Europe
July 22, 2016--Summary: The unprecedented expansion of sovereign balance sheets since the global financial crisis has given a new meaning to the term sovereign risk.
Developments in Europe since early 2010 presented new challenges for the functioning of private banks in an environment of heightened sovereign risk. This paper uses an innovative way of measuring the perception of sovereign risk and its impact on deposit dynamics during 2006-11. Using an extension of a common market discipline framework, it shows that exposure to sovereign risk may have limited the ability of banks in Europe to attract deposits. The results are robust to inclusion of conventional measures of bank performance and the sector-wide holdings of foreign sovereign debt.
Source: IMF
WisdomTree and ICBC Credit Suisse Enter Global Product Partnership on S&P China 500 Index
July 21, 2016-ETF Innovator Joins Local China Expert on Novel Product Based Upon Index Developed by S&P Dow Jones Indices
Partnership Will Provide Investors Access to a Better Barometer for "Total China"
WisdomTree Investments, Inc. (NASDAQ:WETF), an exchange-traded fund ("ETF") and exchange-traded product ("ETP") sponsor and ICBC Credit Suisse Asset Management (International) Company Limited ("ICBCCS"), today announced a global product partnership to launch ETFs that track the S&P China 500 Index.
Source: WWisdomTree
Winthrop
July 21, 2016--Leading up to this past month, the focus of the capital markets was on global economic growth, the weakened condition of the European banking sector and the potential improvement in domestic earnings.
The general wait-and-see attitude of the recent initiatives to stimulate economic growth in Japan and Europe combined with signs of improvement in China's economy helped to provide some stability to equity trading levels. Yet, at the same time investors were trying to digest negative interest rates in Germany, Denmark, Switzerland, Sweden and Japan.
Source: Winthrop Capital Management
EDHEC Risk Institute releases major new research on misconceptions in smart beta investing
July 21, 2016--EDHEC Risk Institute has released a major new research publication on misconceptions in smart beta investing. The research reviews ten common but mistaken claims about smart beta that present risks for investors and sheds light on underlying issues.
The ten misconceptions, in three separate areas of smart beta performance and risk, are the following:
Performance drivers
The hiding game: "smart beta generates alpha"
The monkey portfolio claim: "anything beats cap-weighted market indices"
The value and size myth: "all smart beta performance comes from value and small-cap exposure"
The rebalancing fantasy: "smart beta outperforms because it trades against mean reversion"
view the Ten Misconceptions in Smart Beta Investing report
Source: EDHEC Risk Institute
ERI Scientific Beta Newsletter-14, July 2016
July 20, 2016--Pay For What You Get
From June 2016, ERI Scientific Beta, the smart beta index provider offshoot of EDHEC-Risk Institute, has been offering a revolutionary "pay for what you get" approach to index pricing that disrupts the traditional model of fixed fees on assets under management and enables investors to relate their fees directly to smart beta index performance.
Source: EDHEC-Risk Institute
Deutsche Boerse reaches 55.5 percent share approval on LSE deal
July 20, 2016--Deutsche Boerse (DB1Gn.DE) has won further backing among its shareholders for its planned merger with the London Stock Exchange Group (LSE.L), with the German exchange operator reporting a 55.5 percent approval rate on Wednesday.
Deutsche Boerse had asked its shareholders to back the $27 billion (20.5 billion pounds) merger and last week lowered the acceptance threshold to 60 percent from an earlier 75 percent of its shareholders.
Source: Reuters
Infographic-The Top 10 Emerging Technologies of 2016
July 19, 2016--Sometimes the world is not yet ready for a new technology to enter the fray.
Virtual reality, for example, sat on the sidelines for many years. The industry went into hibernation around the time of the Dot Com Bust, and it has only recently re-emerged with promise.
Source: visualcapitalist.com
WEF-New Report: Mining Sector Can Help Achieve Sustainable Development Goals
July 19, 2016--Report will help the industry to map its roles, responsibilities and opportunities across the 17 Sustainable Development Goals
Pioneering atlas demonstrates how the mining industry can ensure that social and economic benefits of mining are widely shared and environmental impact minimized
The report maps the relationship between mining and the SDGs by using examples of good practice in the industry and existing knowledge and resources in sustainable development
Large-scale mining has the potential to play a critical role in helping to achieve the Sustainable Development Goals (SDGs) in resource-rich countries, according to a new report published today on the occasion of the UN High-Level Political Forum in New York. The report, Mapping Mining to the Sustainable Development Goals: An Atlas, is a joint effort of the United Nations Development Programme, the World Economic Forum, the Columbia Center on Sustainable Investment and the Sustainable Development Solutions Network.
Source: WEF(World Economic Forum)
IMF Cuts Global Growth Forecasts on Brexit, Warns of Risks to Outlook
July 19, 2016--Brexit causes "substantial' increase in economic, political, institutional uncertainty
Global forecast for 2017 cut by 0.1 percentage point, to 3.4 percent
If not for Brexit, global forecast would have been slightly higher
The International Monetary Fund cut its forecasts for global economic growth this year and next as the unexpected U.K. vote to leave the European Union creates a wave of uncertainty amid already-fragile business and consumer confidence.
view the World Economic Outlook-Uncertainty in the Aftermath of the U.K. Referendum
Source:IMF
