Global ETF News Older than One Year
Vanguard CEO Bill McNabb: Investors Are Driving Change in the Global Fund Industry
June 6, 2012--Vanguard Chairman and CEO Bill McNabb outlined four broad trends that will shape the future of the global fund industry in a speech to financial advisors at the Morningstar Canada Investment Conference. Mr. McNabb said that changes in regulatory schemes,
advisory fee structures, and advice models, along with the growing demand for low-cost exchange-traded funds, are the “four forces” that will transform the investment industry in the years to come.
These changes are being driven by investor demand. “Individual investors are smart and getting smarter,” said Mr. McNabb. “And that’s a good thing. Increasingly, they are bringing a healthy consumer mentality to their investment portfolios. They want to know what they are buying and how much they are paying for it. And they want to know that they can trust their investment advisors.”
Investor trust has deteriorated noticeably since the global financial crisis. “We cannot underestimate the importance of trust in the relationship between investors and their investment advisors,” said Mr. McNabb.
In many respects, trust is an intangible concept, said Mr. McNabb. But there are some very tangible and tactical things that investment professionals can do to continue to build and maintain client trust over the long term. They are embodied by three core concepts:
Plain talk: Provide greater transparency on fees, and clear and candid explanations about a fund’s objectives, holdings, and risks.
Source: Vanguard
BATS Global Markets Reports May Monthly Results With Record BYX Market Share
BATS Wins 11.7% U.S. Equities Market Share In May, Up From 10.8% One Year Ago -Record Spanish Market Share And Sixth Straight Month As Largest European Equities Market Operator
June 6, 2012--BATS Global Markets (BATS), a leading operator of securities markets in the U.S. and Europe, today reported continued strong U.S. equities market share,
which reached 11.7% in May, up from 10.8% one year ago and 11.5% in April.
The BATS BYX Exchange set another monthly U.S. equities market share record in May with 3.0%, while the BATS BZX Exchange recorded 8.7%. Monthly market share for BATS Options held steady at 3.0% for the month. BATS Chi-X Europe capped its sixth straight month as the largest European market center by market share and notional value traded reporting 25.1% overall European market share in May, up from 22.8% one year ago on a pro forma basis and 24.6% in April. BATS Chi-X Europe continued to gain Spanish market share with 5.8% in May compared to 5.6% in April and 1.5% one year ago on a pro forma basis.
Source: BATS
IOSCO Publishes its Final Report on International Standards for Derivatives Market Intermediary Regulation
June 6, 2012--The International Organization of Securities Commissions has published today a report entitled International Standards for Derivatives Market Intermediary Regulation, which recommends high-level international standards for the regulation of market participants that are in the busines of dealing, making a market or intermediating transactions in over-the-counter (OTC) derivatives.
Historically these derivatives market intermediaries (DMIs) often have not been subject to the same level of regulation as participants in the traditional securities market. Without sufficient regulation, some DMIs operated in a manner that created risks to the global economy that manifested during the financial crisis of 2008. The Report follows on the commitment by G-20 leaders in 2009 to reform the OTC derivatives market in response to the crisis.
view the International Standards for Derivatives Market Intermediary Regulation-Final report
Source: IOSCO
World Bank Report-What a Waste: A Global Review of Solid Waste Management
New report points to 70% global increase in urban solid waste
June 6, 2012--A new, far-reaching report on the state of municipal solid waste around the world predicts a sharp rise in the amount of garbage generated by urban residents between now and 2025. The report estimates the amount of municipal solid waste (MSW) will rise from the current 1.3 billion tonnes/year to 2.2 billion tonnes/year, with much of the increase coming in rapidly growing cities in developing countries.
The annual cost of solid waste management is projected to rise from the current $205 billion to $375 billion, with cost increasing most severely in low income countries.
The report, What a Waste: A Global Review of Solid Waste Management, for the first time offers consolidated data on MSW generation, collection, composition, and disposal by country and by region. In itself, this is an accomplishment because, as the report states, reliable global MSW information is either not available or incomplete, inconsistent, and incomparable. Nevertheless, the authors of the report point to a looming crisis in MSW treatment as living standards rise and urban populations grow.
“Improving solid waste management, especially in the rapidly growing cities of low income countries, is becoming a more and more urgent issue,” said Rachel Kyte, Vice President, Sustainable Development at the World Bank. “The findings of this report are sobering, but they also offer hope that once the extent of this issue is recognized, local and national leaders, as well as the international community, will mobilize to put in place programs to reduce, reuse, recycle, or recover as much waste as possible before burning it (and recovering the energy) or otherwise disposing of it. Measuring the extent of the problem is a critical first step to resolving it.”
view the World Bank Report-What a Waste: A Global Review of Solid Waste Management
Source: World Bank
DCGX Academy-SILVER LINING-World Awaits Stimulus- Markets Rise
June 5, 2012--HIGHLIGHTS
INR: Trade Deficit Falls, Crude declines Rupee Rises
The smallest trade deficit in seven months and sliding crude-oil prices are poised to support the rupee, Asia's worst-performing currency this quarter, and revive investment in India's bonds.
The rupee was little changed yesterday after a two-day advance as data showed last week the shortfall narrowed to $13.5 billion in April from $13.9 billion a month earlier. Oil prices fell below $100 a barrel for the first time since October on May 31, reducing import costs for the world's fourth-biggest consumer of the fuel. The rupee, which has slumped 8.6 percent since March, will advance 7 percent to end the year at 52 per dollar, according to analysts .Prime Minister Manmohan Singh's administration has pledged to reduce subsidies to support the currency and lure investors as the government seeks $1 trillion of investments by 2017 to build power plants, roads and bridges.
International funds cut holdings of local debt by $1.1 billion from a record $31.5 billion reached on Feb. 29, more than four times the amount they sold in Indonesia.
FOREIGN EXCHANGE
Euro Rises for 3rd Day Before G-7 Officials Discuss Debt Crisis
Dollar to Rise Versus Most as Central Banks Stimulate, UBS Says
Australian Dollar Advances After RBA Cuts Benchmark Rate to 3.5%
Canada Dollar Touches Six-Month Low Before Central Bank Meeting
S&P Sees at Least 1-in-3 Chance of Greece Euro Exit After Vote
Euro Rises for a third day
The euro rose for a third day before finance ministers and central bank governors from the Group of Seven nations hold a call today to discuss Europe's debt crisis. The yen and dollar fell against most major counterparts as Asian stocks rallied, sapping demand for lower-yielding assets. Australia's dollar advanced before an interest-rate decision by the Reserve Bank. Policy makers may lower benchmark borrowing costs for a second consecutive meeting, according a survey of economists.
Dollar to Rise Versus Most as Central Banks Stimulate, UBS Says
Source: DGCX Academy
Three Key Drivers To BNY Mellon's $27 Stock Value
June 5, 2012--BNY Mellon is the world's largest custodian bank with $26.6 trillion worth of assets under custody and management. JP Morgan Chase and State Street are its nearest competitors managing assets worth $25.2 trillion and $23.2 trillion respectively.
As we briefly discussed in our article Understanding Banks: Types & Functions, custody banks manage assets for other financial institutions – generally broken down into investment servicing and investment management services. In this article, we detail the functions that contribute the most to BNY Mellon’s value.
Source: Forbes
May 2012 Commodities Commentary: Dow Jones-UBS Commodity Indexes Down On Global Economic Uncertainty
June 5, 2012--The Dow Jones-UBS Commodity Index was down 9.14% for the month of May, with some commodities striking multi-year lows as investors focused on the strong U.S. dollar and economic uncertainty in Europe and China.
Moody’s Investor Service cut the ratings of 16 banks in Spain. Fitch Ratings also downgraded Greece’s credit. A new election in Greece on June 17 offers no guarantee of a viable government able to implement an EU-IMF bailout that has roiled the country.
The three most significant downside performing single commodity indexes were orange juice, cotton and WT1 crude oil, which ended the month down 21.01%, 19.97% and 17.79% respectively.
Source: Mondovisione
Redefining the Emerging Market Opportunity: Driving Growth through Financial Services Innovation
June 5, 2012--Redefining the Emerging Market Opportunity: Driving Growth through Financial Services Innovation reveals how global competition in financial services has been transformed by the rapid growth of emerging economies, which are now the leading source of the industry's long-term business prosperity.
The Report, produced in collaboration with The Boston Consulting Group, documents how innovative emerging-market financial companies have vaulted into the ranks of top-performing, world-class providers. They now dominate the list of financial companies providing the highest shareholder returns.
Financial providers worldwide, the study says, should regard developing economies as a historic opening to provide new financial services to low-income populations rapidly transitioning to middle-income status, as well as to regional companies evolving to world-class competitors. The study shows that the most significant opportunities lie in three sectors: consumer financial services, small- and medium-sized enterprise financing, and corporate bonds. The Report, accompanied by 33 real-world case studies, documents why innovation of business models, financial products and services – rather than simple capacity-building – will be the main driver of success in emerging markets.
Source: World Economic Forum (WEF)
WEF-International Monetary Stability Key for Maintaining Global Growth Says New Report
A new World Economic Forum report examines key challenges for the euro, dollar and yuan and their implications for global growth, investment and business environments.
International monetary stability is at risk due to uncertain future international roles of these currencies, while policy choices within each currency area could radically alter global patterns of trade and capital movement.
June 5, 2012--Growing instability in the international monetary system could significantly affect economic growth, investment and business environments, according to a new report, Euro, Dollar, Yuan Uncertainties: Scenarios on the Future of the International Monetary System, launched today at the World Economic Forum on the Middle East, North Africa and Eurasia in Istanbul.
The report explores the critical uncertainties underlying the future international roles of the euro, the dollar and the yuan – the world’s three major currencies – and posits three scenarios for the international monetary system in 2030 based on policy choices in each currency area.
"Currency uncertainties are an increasing concern for businesses from the real economy due to the rapid integration of global trade and capital flows over the past decades. This has made the links that connect different parts of the world economy ever more central to global prosperity while at the same time making the international monetary system, as well as the main international currencies that underpin this system, more vulnerable," said Kristel Van der Elst, Director and Head of Strategic Foresight at the World Economic Forum.
"It is clear that studying possible evolutionary paths of the international monetary system has moved out of the realm of academic discussion and into the real world in a way financial services providers cannot afford to ignore" said Christopher Harvey, Global Head of Banking and Securities at Deloitte Touche Tohmatsu Limited, a Partner of the World Economic Forum initiative.
Source: World Economic Forum
Component Changes Made to Dow Jones Islamic Market China/Hong Kong Titans 30 Index
May 5, 2012-- Dow Jones Indexes, a leading global index provider, today announced that Hong Kong's Alibaba.com Limited will be removed from the Dow Jones Islamic Market China/Hong Kong Titans 30 Index due to its acquisition by Alibaba Group Holding Limited.
Alibaba.com Limited will be replaced by Brilliance China Automotive Holdings Limited. Headquartered in Shenyang, China, Brilliance China Automotive Holdings Ltd. is engaged in manufacture and sale of minibuses and automotive components.
The changes in the Dow Jones Islamic Market China/Hong Kong Titans 30 Index will be effective as of the open of trading on Friday, June 8, 2012.
The Dow Jones Islamic Market China/Hong Kong Titans 30 Index measures the performance of the 30 largest companies whose primary operations are in mainland China and Hong Kong but whose stocks trade on the Stock Exchange of Hong Kong. The components of the index must pass rules-based screens for Shari`ah compliance.
Company additions to and deletions from the Dow Jones Islamic Market China/Hong Kong Titans 30 Index do not in any way reflect an opinion on the investment merits of the company.
Source: Dow Jones Indexes
