ERI Scientific Beta Newsletter-July 2017-continued

July 27, 2017--Editorial
The Merits of a "Top-Down" Approach to Multi-Factor Investing
"Top-down" approaches assemble multi-factor portfolios by combining distinct sleeves for each factor.
Generally, the "top-down" approach enables a choice of factor exposure to be reconciled with the diversification of the non-rewarded specific risk and thus to reduce it. Such is the objective of the Smart Beta 2.0 approach promoted by ERI Scientific Beta on the basis of research conducted by EDHEC-Risk Institute's research teams.

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Source: ERI Scientific Beta

Global ETP News
Most IoT Solutions Fail -But Six Are Primed for Worldwide Adoption and Impact
September 20, 2018--New roadmap to accelerate global impact of internet of things (IoT) technologies, in six clusters
IoT solutions will not necessarily replace humans
China and wider Asia region will be among greatest beneficiaries
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The 'Blue Economy' and its vast potential
September 20, 2018--MANY investors are fascinated by the allure of the Blue Economy which aims to harness-potentially-trillions of dollars of the assets of the oceans, while its spin-off idea of Blue Bonds is making a splashy start.
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Markets Committee analyses changes in fast-paced electronic markets
September 17, 2018--Trading in foreign exchange and other fast-paced electronic markets is increasingly spread across a range of platforms, with non-bank intermediaries, most notably principal trading firms, gaining a stronger foothold. In addition, access to data and data-centric technologies increasingly defines competitive and market structure changes, a Markets Committee report shows.
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Robo advisers short circuit over ethical investing
September 13, 2018--A rift is emerging between rival robo advisers over the suitability of ready-made ethical investment portfolios, with several platforms arguing that the market is not mature enough to support fully diversified products.
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FTSE Russell to decide on China A-shares inclusion "very soon"
September 13, 2018--FTSE Russell will decide in the coming weeks whether to include China-listed equities in its indices, the index provider's chief executive said.
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Global Financial Centres Index 24
September 12, 2018--Today Z/Yen Partners and the China Development Institute(CDI) publish the twenty-fourth Global Financial Centres Index (GFCI 24).
Not for the first time, New York took first place in the index, just two points head of London. However both centres fell slightly in the ratings.
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IMF Working Papers-Dollarization and Financial Development
September 11, 2018--Summary:
Despite significant strides in financial development over the past decades, financial dollarization, as reflected in elevated shares of foreign currency deposits and credit in the banking system, remains common in developing economies. We study the impact of financial dollarization, differentiating across foreign currency deposits and credit on financial depth, access and efficiency for a large sample of emerging market and developing countries over the past two decades.
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Fidelity raises stakes in price war
September 9, 2018--A shockwave hit the investment industry in August when asset manager Fidelity launched the first US zero-fee index-tracking mutual funds.
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BlackRock to expand its private investment activities
September 9, 2018--BlackRock plans to ramp up its private investment activities, concerned that the US stock market is being shrunk by the surge in buybacks.
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How Mifid II is reshaping the trading landscape
September 9, 2018--Companies are facing challenges over transparency around liquidity and best execution.
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Trade war fears spook mutual fund investors
September 8, 2018-- Investment industry heads for one of its worst years since the financial crisis.
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The World Federation of Exchanges calls for global reform of Leverage Ratio
September 7, 2018--The World Federation of Exchanges ("WFE"), the global industry group for CCPs and exchanges, has today published its response to the four global standard-setting boards assessing the effectiveness of incentives to centrally clear over-the-counter (OTC) derivatives.
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Global Trading Activity in August Solidly Outpaced the Prior-year Period
September 7, 2018--Despite the seasonal summer slowdown, global trading activity in August continued to outpace the prior-year period. Average daily volume (ADV) for Tradeweb Markets of $496 billion (bn)-across rates, credit, money markets and equities-in August 2018 increased 38.0 percent (%) year over year (YoY).
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World Gold Council-Outflows in gold-backed ETFs continued in August
September 6, 2018--Holdings in global gold-backed ETFs and similar products fell by 40t to 2,353t in August-the third consecutive month-pushing assets under management (US$ AUM) down 3% relative to July
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Monday Morning Memo: Is it only about fees and expenses in the funds industry?
September 3, 2018--Fees and expenses in the mutual funds industry are a hot topic for investors and market observers around the world. In some cases discussions are going so far that one could get the impression that fees and expenses are the only criteria an investor should use when selecting a mutual fund or ETF.
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Investment World Bank to increase clarity around impact investing
September 1, 2018--The World Bank body that promotes investment in developing countries has created a definition of impact investing to try to stop organisations wrongly using the strategy's popularity for gain.
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'Time is on Beijing's side’: China, not Trump, will triumph in trade war, former top Chinese officials say
August 29, 2018--The real stakes are much higher than trade practices and China must gain control over core technology, economist says
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IMF Working Paper-Banking in a Steady State of Low Growth and Interest Rates
August 27, 2018--Summary:
A prolonged low-interest-rate environment presents a significant challenge to banks and is likely to entail major changes to their business models over the long-run. Lower returns to maturity transformation in the face of flatter yield curves and an inability to offer deposit rates significantly below zero combine to compress bank earnings in this environment.
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Vanguard nips at BlackRock's heels for fund crown
August 26, 2018--Money manager attracted $112bn of net new flows in first half while bigger rival brought in $77bn.
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First Bridge Data-ETF Global Snapshot-Aug 2018-Upcoming GICS changes
August 23, 2018--The GICS sector changes announced in 2017 will become effective on September 28, 2018. The changes impact some of the world's most traded stocks.
Blackrock pruned its US product line by closing 16 ETFs with low asset levels.
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World Gold Council-Gold recoils amid selloff but may rebound
August 23, 2018--Gold fell to a 20-month low amid sharp EM currency depreciation. At these levels, we believe the gold price may bounce back. Consumer demand is likely to be supportive in H2.
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World Bank exceeds expectations with world-first blockchain bond: CBA
August 23, 2018--The world's first public bond created and managed using only blockchain had support from seven investors, Commonwealth Bank of Australia, the sole lead manager of the deal said on Friday, helping raise A$110 million ($80.48 million) for the World Bank.
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State Street Research Reveals Majority of Asset Managers Face Challenges with Distribution-Related Data
August 22, 2018--State Street Corporation (NYSE: STT) today announced the latest findings from its research, the State Street 2018 Fund Strategy Survey [1], which surveyed 250 asset managers globally and analysed how they are developing cross-border strategies, including the factors influencing their choice of fund vehicle, passport and domicile location.
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ETFGI reports that Active ETFs and ETPs listed globally reach a new high of US$95.9 billion at the end of July 2018
August 22, 2018--ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in Active ETFs and ETPs listed globally reached a new high of US$95.9 billion, following net inflows of US$3.59 billion and market moves during July, according to ETFGI's July 2018 Global Active ETF and ETP industry landscape insights report, an annual paid-for research subscription service.?(All dollar values in USD unless otherwise noted.)
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