Global ETF News Older than One Year
M Stanley warns on ‘prop trading’ crackdown
January 27, 2010--US proposals to limit sharply proprietary trading by banks could cut earnings at global investment banks by 3-5 per cent, with JPMorgan, Bank of America and Deutsche Bank particularly at risk, new analysis by Morgan Stanley has found.
But the Morgan Stanley analysts were more bullish on US banks than their European counterparts because they believe the another big set of regulatory proposals – from global banking regulators based in Basel – will hit European banks harder than those in the US.
Source: FT.com
Fund industry wants ETF issues resolved, says SSgA
Regulatory uncertainty still clouds parts of the exchange-traded fund market, says a new report from State Street Global Advisors.
January 27, 2010--The exchange-traded funds market may be growing fast, but regulatory uncertainty remains over products such as commodity, inverse, leveraged and active ETFs. And there's pressure to get quick resolution on structural issues, says State Street Global Advisors (SSgA), the world's second biggest ETF provider.
Global ETF assets under management grew by 31% to $933 billion in the nine months to September 30, with the Asia-Pacific region accounting for $62 billion, or around 7% of the total, said SSgA in a report* published yesterday. But Asia-Pacific ETF assets are growing faster than those of any other region, having risen by 50% in the same period.
Source: Asian Investor
World Economic Outlook Update-A Policy-Driven, Multispeed Recovery
January 26, 2010--The global recovery is off to a stronger start than anticipated earlier but is proceeding at different speeds in the various regions. Following the deepest global downturn in recent history, economic growth solidified and broadened to advanced economies in the second half of 2009. In 2010, world output is expected to rise by 4 percent.
This represents an upward revision of ¾ percentage point from the October 2009 World Economic Outlook. In most advanced economies, the recovery is expected to remain sluggish by past standards, whereas in many emerging and developing economies, activity is expected to be relatively vigorous, largely driven by buoyant internal demand. Policies need to foster a rebalancing of global demand, remaining supportive where recoveries are not yet well sustained.
Real activity is rebounding, supported by extraordinary policy stimulus Global production and trade bounced back in the second half of 2009. Confidence rebounded strongly on both the financial and real fronts, as extraordinary policy support forestalled another Great Depression. In advanced economies, the beginning of a turn in the inventory cycle and the unexpected strength in U.S. consumption contributed to positive developments. Final domestic demand was very strong in key emerging and developing economies, although the turn in the inventory cycle and the normalization of global trade also played an important role.
view the World Economic Outlook Update
Source: IMF
Global Financial Stability Report -GFSR Market Update
Financial System Stabilized, but Exit, Reform, and Fiscal Challenges Lie Ahead
January 26, 2010--Systemic risks have continued to subside as economic fundamentals have improved and substantial public support remains in place. Despite improvements, financial stability remains fragile in many advanced countries and some hard-hit emerging market countries. A top priority is to improve the health of these banking systems so as to ensure the credit channel is normalized. The transfer of financial risks to sovereign balance sheets and the higher public debt levels also add to financial stability risks and complicate the exit process. Capital inflows into some emerging market countries are beginning to raise concerns about asset price and exchange rate pressures.
Policymakers in these countries may need to exit earlier from their supportive policies to contain financial stability risks. For all countries, the goal is to exit from the extraordinary public interventions to a global financial system that is safer, but retains the dynamism needed to support sustainable growth.
Financial markets have recovered strongly since their troughs, spurred on by improving economic fundamentals and sustained policy support (see the World Economic Outlook Update, January 2010). Risk appetite has returned, equity markets have improved, and capital markets have re-opened. As a result, prices across a wide range of assets have rebounded sharply off their historic lows, as the worst fears of investors about a collapse in economic and financial activity have not materialized
Source: IMF
Investor Confidence Index rises from 104.3 to 104.5 in January
January 26, 2010--Investor confidence rose fractionally by 0.2 points to 104.5 in January from a revised December level of 104.3, according to the State Street Investor Confidence Index.
The mood was upbeat in North America, where confidence showed an increase of 4.4 points over December’s reading of 103.5 to settle at 107.9.
In Europe, by contrast, institutional investors were more wary, and their confidence fell 5.6 points to 98.9 from the December level of 104.5.
Amongst Asian institutional investors, confidence rose slightly to 98.1 from a level of 97.5 in December.
Source: ETF Express
January 2010 “Islamic Market’s Measure” – Preliminary Report - Monthly Report On The Performance Of The Dow Jones Islamic Market Indexes
January 26, 2010--Based on the close of trading on January 25, the global Dow Jones Islamic Market Titans 100 Index, which measures the performance of 100 of the leading Shari’ah compliant stocks globally, lost -1.69% month-to-date, closing at 2085.53. In comparison, the Dow Jones Global Titans 50 Index, which measures the 50 biggest companies worldwide, posted a loss of -2.67%, closing at 169.01.
The Dow Jones Islamic Market Asia/Pacific Titans 25 Index, which measures the performance of 25 of the leading Shari’ah compliant stocks in the Asia/Pacific region, increased 1.12%, closing at 1870.98. The Dow Jones Asian Titans 50 Index, in comparison, posted a gain of 1.67%, closing at 136.52.
Measuring Europe, the Dow Jones Islamic Market Europe Titans 25 Index, which measures the performance of the 25 of the leading Shari’ah compliant stocks in Europe, closed at 2112.95, a loss of -2.12%, while the pan-European blue chip Dow Jones STOXX 50 Index lost -4.62%, closing at 4363.33.
Measuring the performance of 50 of the largest Shari’ah compliant U.S. stocks, the Dow Jones Islamic Market U.S. Titans 50 Index decreased, closing at 2101.68. It represents a loss of -2.01%. The U.S. blue-chip Dow Jones Industrial Average decreased -2.22%, closing at 10196.86.
Source: Dow Jones Indexes
Trust in Business Rises Globally, Driven by Jumps In U.S. and Other Western Economies
Recovery Fragile as Majority Expect a Return to “Business as Usual,” 2010 Edelman Trust Barometer Finds
January 26, 2010-- Global trust in business is up modestly but the rebound is fueled by a spike in a handful of Western countries, especially the United States where it jumped 18 points to 54 percent, according to the 2010 Edelman Trust Barometer. Trust in business remains high in three of the four BRIC countries, with Brazil, India, and China above 60 percent. The overall rise is tenuous, however, with nearly 70 percent saying business and financial companies will revert to “business as usual” after the recession. Trust in banks declined dramatically in most Western countries, plummeting 39 points (68 to 29 percent) in the U.S. and 20 points (41 to 21 percent) in the U.K. from 2007-2010*.
“Trust in business has improved, but the patient has a long road to go for a full recovery,” said Richard Edelman, president and CEO, Edelman. “The increase in trust in business belies its fragility. There is concern that short-term actions have been taken only as a result of the crisis and that government will need to remain a watchdog. Companies will have to prove the skeptics wrong and show they can achieve both profit and purpose.”
Additional Key Findings Include:
While Sweden, Canada, and Germany remain the most trusted countries for global headquarters (76, 76, and 75%, respectively), the U.S. is now trusted by 61%, up 10 points from last year. China rose by seven points in this category (27 to 34%).
In all 22 countries, when asked which stakeholder should be most important to a CEO’s business decisions, respondents replied that “all stakeholders are equally important” – by as much as a 4:1 margin against individual stakeholders.
Trust in business jumps by 26 points in Italy, 18 points in the U.S., 15 points in the Netherlands, and 14 points in Spain. In Russia, trust in business falls by 10 points (to 42%).
Trust in government is stable, with significant moves in the U.S. (up 16 points to 46%) and in Russia, where trust decreased by 10 points to 38%. In 20 countries, corporate or product advertising continues to be the least credible source of information at 17%.
In the U.S., U.K., Germany and the BRIC countries, more than 70% say that actions such as firing non-performing managers, repaying bailout money, or reducing the pay gap between senior executives and rank and file workers would restore their trust in the company.
Source: Edelman
Climate investments perform in volatile market: Deutsche report
Simulated portfolio shows performance factor in climate investments.
January 26, 2010-A global multi-asset portfolio with an allocation to climate-change-related investments would have outperformed one that was conventionally allocated over historical time frames, according to a new report by DB Climate Change Advisors, a unit of Deutsche Asset Management.
A 6% climate-change allocation in a diversified global portfolio investing in public and private equity, fixed income and infrastructure would have returned 9.39% a year compared with 8.73% for a similar portfolio without the climate change investments, according to results that simulated probable distributions of returns over different historical periods. The simulated volatility of 11.3% for the portfolio with climate-change investments compared with 10.76% for the conventional portfolio, according to the 100-page report: “
Source: Responsible Investor
ETF Landscape: Industry Review - December 2009
January 21, 2010--At the end of November 2009 the global ETF industry hit an all time high of US$982.28 Bn with 1,907 ETFs and 3,678 listings from 103 providers on 39 exchanges around the world.
Source: ETF Research and Implementation Strategy, Blackrock
China Losing to U.S. Among Investments of Choice
January 21, 2010--Investors have turned bullish on the U.S. while tempering their enthusiasm for China as they worry about a market bubble there, according to a Bloomberg survey.
An overwhelming majority also see a government debt default on the horizon this year, according to a quarterly poll of investors and analysts who are Bloomberg subscribers. Greece is considered the riskiest government, followed by Argentina, Russia, Ireland, Portugal, Italy, Spain and Mexico.
Source: Bloomberg
