ERI Scientific Beta Defensive Strategies: Bringing Diversification to, and Going Beyond, Traditional Approaches-continued

August 8, 2016--While defensive strategies are designed to lower exposure to market risk so as to provide relative downside protection in bear markets, they have also returned sterling risk-adjusted performance over the long term, challenging the Capital Asset Pricing Model's central prediction of a linear relationship between market risk and return.
In a research publication entitled "ERI Scientific Beta Defensive Strategies: Bringing Diversification to, and Going Beyond, Traditional Approaches", we review improved forms of traditional defensive strategies and an Adaptive Defensive Solution through the use of smart factor indices.

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Source: ERI Scientific Beta

Global ETP News
DECPG Global Weekly
May 18, 2018--TAKING STOCK
U.S. industrial production and retail sales rose in April; new housing construction fell
Euro Area GDP growth slowed in 18Q1; inflation was confirmed at 1.2 percent in April.
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Thomson Reuters-Fund Investors and APs Warm to Domestic Equity Funds and ETFs in April
May 16, 2018--While for the second consecutive month money market funds witnessed net outflows, handing back $1.2 billion for April, for the second month in a row both the stock & mixed-asset funds and fixed income funds macro-groups witnessed net inflows, taking in $7.9 billion and $6.0 billion, respectively.
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Exchanges maturing in ESG leadership as nine-in-ten embrace sustainability-new WFE survey out today
May 15, 2018--The World Federation of Exchanges ("The WFE"), the global industry group for exchanges and CCPs, today published its fourth annual Environmental, Social and Governance (ESG) survey of members, which shows nearly 90% of member exchanges are embracing sustainability initiatives.
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Morningstar Passive Sustainable Funds: The Global Landscape
May 15, 2018--In this report, we provide an overview of the global landscape of index-tracking sustainable funds, ,looking at trends in asset growth, asset flows, and product development.
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IMF Working Papers-Evolution of the Global Financial Network and Contagion: A New Approach
May 15, 2018--Summary:
This paper studies the interconnectedness of the global financial system and its susceptibility to shocks. A novel multilayer network framework is applied to link debt and equity exposures across countries.
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The OECD Risks That Matter Survey 2018
May 15, 2018-To find out more about people's perceptions of social and economic risks and how well they think their government reacts to those risks, the OECD recently launched a brand-new cross-national survey-the OECD Risks That Matter Survey.
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The Eurekahedge Report May 2018
May 15, 2018--Highlights from this month's report
Hedge funds bounced back to positive territory in April, up 0.55% with the underlying markets, as represented by the MSCI AC World Index (Local) up 1.18% over the same period. On a year-to-date basis, managers gained 0.23% with 10% of them posting returns in excess of 5%.
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ETFGI reports ETFs and ETPs listed globally gathered net inflows of 36.46 billion US dollars in April, marking 51 months of consecutive of net inflows
May 14, 2018--ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that ETFs and ETPs listed globally gathered US$36.46 Bn in net inflows, marking 51 months of consecutive of net inflows.
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Basel Committee issues capital treatment for simple, transparent and comparable short-term securitisations
May 14, 2018--The Basel Committee on Banking Supervision today issued the Capital treatment for simple, transparent and comparable short-term securitisations.
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BCBS and IOSCO issue criteria for identifying simple, transparent and comparable short-term securitisations
May 14, 2018--The Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) today issued the Criteria for identifying simple, transparent and comparable short-term securitisations (the short-term STC criteria), which are available on the BCBS and IOSCO websites.
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Singapore Exchange (SGX) and Tel-Aviv Stock Exchange (TASE) Establish Partnership to Grow Cross-Border Capital Raising Opportunities for Technology Companies
May 14, 2018--Partnership complements efforts by the exchanges to boost their respective technology sector listings
Singapore Exchange (SGX) and The Tel-Aviv Stock Exchange (TASE) today announced that they have established a partnership focused on growing capital raising opportunities for companies, particularly in the technology sector.
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ETF Securities Weekly Flows Analysis: Geopolitical risks drove ETP flows last week
May 14, 2018--Oil ETPs see US$39.5mn outflows as investors take profit on 3.2% rise in oil price.
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ETF sales hit by return of global market volatility
May 14, 2018--About $2.9bn in new money flowed into gold exchange traded funds globally.
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BlackRock Global ETP Landscape-April 2018
May 11, 2018--Summary
Global ETP flows in April were fueled by Fixed Income
April industry flows of $35.4bn doubled in comparison to $17.7bn in March as flows into Fixed Income funds accelerated and U.S. equity flows turned positive after two months of outflows
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IMF Regional Economic Outlook Update: Middle East and Central Asia
May 11, 2018-- Summary
Growth is improving in the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region and was stronger than expected last year in the Caucasus and Central Asia (CCA) region. However, the regions are not fully benefitting from the stronger global outlook.
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DECPG Global Weekl
May 11, 2018--TAKING STOCK
U.S. inflation rose less than expected in April; consumer confidence held steady in May
Bank of England kept interest rates on hold; Euro Area investor sentiment fell to a 15-month low
Japan's household spending fell for a second consecutive month in March
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Investment Update: Using gold to hedge emerging market risk
May 10, 2018--Over the long run, economic growth is a key driver of gold demand, especially in emerging market countries where there is high affinity for gold as jewellery and investment. At the same time, gold tends to perform well in period of crisis.
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IMF Working Papers-Cross-Border Transmission of Fiscal Shocks: The Role of Monetary Conditions
May 9, 2018--Fiscal stimulus was widely advocated during the global crisis, a period characterized by monetary policy constrained by the effective lower bound (ELB) in many countries, in part because of expected positive spillovers.
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ETF Securities Weekly Flows Analysis: Gold ETPs took the lions share of flows amidst the ongoing risk-off environment
May 9, 2018--Gold ETP inflows surged to their highest level at US$62.8mn in 25 weeks after a tepid jobs report.
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World Gold Council-Gold-backed ETFs had their strongest inflows since early 2017
May 9, 2018--Global gold-backed ETFs holdings added 72.2 tonnes(t) to 2,481t in April. This is the strongest month of net inflows in more than a year.
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World Bank-Europe and Central Asia Economic Update, May 2018: Cryptocurrencies and Blockchain
May 8, 2018--With growth in Europe and Central Asia likely at its peak, this report addresses two questions. How well is the region prepared for an expected slowdown? How well has the economic upswing been used to adjust to the digital revolution? The report specifically focuses on cryptocurrency and blockchain activities in the region.
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SPDR Blog- April ETF Flows: Will Markets' Sideways Climb Persist?
May 7, 2018--Rock climbing is a physically and mentally demanding sport that tests one's strength, endurance, agility and mental control. Such a complex and high-risk activity makes technique critical. The rock's façade may require the climber to move sideways or backwards before advancing to find better footing and form a strong base before pivoting to the next move.
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DECPG Global Weekly
May 4, 2018--TAKING STOCK
U.S. non-farm job growth rebounded in April; Federal Reserve kept interest rates on hold
Euro Area GDP growth slowed in 18Q1; inflation decelerated in April
Japan's consumer sentiment worsened in April
China's manufacturing PMIs were broadly steady in April
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World Economic Forum-Maximizing the Return on Digital Investments
May 3, 2018--Digital technologies offer new ways for companies to grow and be more productive. However, it is not completely clear how investments in new technologies impact productivity.
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World Gold Council-Gold Demand Trends Q1 2018
May 3, 2018--Soft start to 2018: Q1 demand down 7%
Gold demand of 973.5t was the lowest Q1 since 2008. The main cause was a fall in investment,demand for gold bars and gold-backed ETFs, partly due to range-bound gold prices.
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Liquidity ousts leverage as the big market worry
May 3, 2018--Some say banks' retreat from their role as market makers will amplify the next crisis.
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BetaShares-Global Market Outlook: Interest rate risk
May 2, 2018--Month in Review- Wall Street lags as yields and $US rise
Global equities rebounded in April, partly unwinding the declines over the previous two months. The rebound came despite a lift in global bond yields and reflected ongoing good growth in earnings and still reasonable valuations that allowed a small drop in the equity-yield-premium over bonds.
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Global Developments Implications for the Middle East, North Africa, Afghanistan and Pakistan Region
May 2, 2018--Full Text
Global growth continued to strengthen in the second half of 2017 and is now estimated at 3.8 percent for the full year, the highest level since 2011 and 0.2 percentage point stronger than forecast in the October 2017 World Economic Outlook (see table). Growth is projected to strengthen further to 3.9 percent in 2018 and in 2019, also 0.2 percentage point higher than anticipated in October.
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Progress on Global Energy Goals Slow, but Strong Gains in Countries Show Promise
May 2, 2018--The world is not on track to meet the global energy targets for 2030 set as part of the Sustainable Development Goals, but real progress is being made in certain areas-particularly expansion of access to electricity in least developed countries, and industrial energy efficiency, according to a new report from five international agencies.
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ETF Securities Weekly Flows Analysis-Contrarians appear to sell US Dollar and buy sugar
April 30, 2018--US$6.7mn inflows into short USD long EUR ETPs as investors place contrarian trades.
Gold outflows resumed after two weeks of inflows.
Falling sugar prices draw out potential bargain-hunters.
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SPDR Sector Snap Shot April 2018-SPDR EMEA ETF Strategy Team
April 30, 2018--Global equity markets continued to experience downward pressure in March as the MSCI World Index fell 2.48%.2 Volatility levels-though off the February peaks-remain at an elevated range from the high teens o the mid-20s.3 Whilst investors appeared to maintain a broadly positive view of risk assets (8 of 11 sectors had positive net flow last month), a closer look showed a clear preference for safety: the defensive sectors saw the highest positive moves.
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DECPG Global Monthly-April 2018
April 30, 2018--Overview
Global growth remains solid but showed signs of moderation in 18Q1, with survey data softening in March in both advanced economies and emerging market and developing economies (EMDEs).
Although the risk of rising trade protectionism weighed on financial market sentiment, financing conditions for EMDEs continue to be broadly supportive.
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DECPG Global Weekly
April 27, 2018--TAKING STOCK
U.S. GDP growth decelerated in 18Q1; composite PMI rose at start of Q2
ECB kept policy unchanged; Euro Area composite PMI held steady
Bank of Japan kept interest rates on hold; manufacturing PMI edged up in April
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ETF Securities-Commodity Monthly Monitor-Commodities see-saw amidst geopolitics and rising yields
April 27, 2018--Summary
If there has been one theme driving global markets over the past month it has been geopolitical risk. At times, the focus has been on the potential for a trade war, primarily between the U.S. and China, but also potentially touching on adjustments to North American Free Trade Agreement (NAFTA).
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Saudi Arabia Equities Take To The Global Stage
April 25, 2018--FTSE Russell recently announced that Saudi Arabia will be assigned Secondary Emerging market status following the March 2018 interim country classification review.
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Private equity funds active in market hit record
April 25, 2018---A high of 2,296 funds operating, according to new report
The number of private equity funds has reached an all-time high as demand from institutional investors for the sector grows in a low interest rate environment, according to a new report.
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ISDA Publishes New Academic Paper on Margin Requirements for Non-cleared Derivatives Market
April 25, 2018--The International Swaps and Derivatives Association, Inc. (ISDA) has published a new academic paper that analyzes the regulatory initial margin framework for the non-cleared derivatives market. The academic paper, sponsored by ISDA, was written by Rama Cont, Chair of Mathematical Finance at Imperial College London.
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IMF Working Papers-Financial Crises, Macroeconomic Shocks, and the Government Balance Sheet: A Panel Analysis
April 24, 2018--Summary:
Government financial assets are increasingly recognized as playing an important role in assessing fiscal sustainability. However, very little research has been done on the dynamics of government financial assets compared to liabilities. In this paper, we investigate the impact of recent financial crises and macroeconomic shocks on government balance sheets, decomposing the separate effects on financial assets and liabilities.
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Commodity prices to rise more than expected in 2018: World Bank
April 24, 2018--Oil prices to average $65 a barrel in 2018 on strong demand, producer restraint
Oil prices are forecast to average $65 a barrel over 2018, up from an average of $53 a barrel in 2017, on strong demand from consumers and restraint by oil producers, while metals prices are expected to rise 9 percent this year, also on a pickup in demand and supply constraints, the World Bank said on Tuesday.
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World Gold Council-Investment Update: Gold tracks the dollar as rates take a back seat
April 23, 2018--Investors often use the direction of the US dollar as a bellwether for gold's performance. However, over recent years, short-term movements in gold have been more heavily influenced by US interest rates and expectations of policy normalisation.
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World Gold Council-Investment Update: Gold tracks the dollar as rates take a back seat
April 23, 2018--Investors often use the direction of the US dollar as a bellwether for gold's performance. However, over recent years, short-term movements in gold have been more heavily influenced by US interest rates and expectations of policy normalisation.
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Abu Dhabi, Shanghai plan exchange focusing on China trade
April 23, 2018--Abu Dhabi Global Market (ADGM), the emirate's international financial centre, has agreed in principle with the Shanghai Stock Exchange to cooperate in establishing an exchange focusing on China's foreign trade and investment, ADGM said on Monday.
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ETF Securities Weekly Flows Analysis-Precious metal ETP flows strengthen as trade tensions continue
April 23, 2018--Summary
Bargain hunters continued to drive strong inflows into gold ETPs-worth US$16.1mn - supported by ongoing trade tensions and geopolitical risks.
Crude oil ETPs faced redemptions worth US$32.7mn, the highest level in five weeks, on the back of profit taking as oil prices rose for the second week in a row.
Outflows from nickel ETPs widened the most in 3 weeks as prices rose over concerns of further US sanctions on Russia.
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Basel Committee urges full, timely and consistent implementation of Basel III post-crisis reforms
April 23, 2018--Today the Basel Committee on Banking Supervision (BCBS) issued the Fourteenth progress report on adoption of the Basel regulatory framework.
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