Global ETF News Older than One Year
EDHEC-Risk Institute provides an academic framework to maximise the benefits of factor investing for institutional investors
February 1, 2018--The relevance of factor investing is gaining acceptance amongst sophisticated investors. The approach recommends that allocation decisions be taken in terms of risk factors, as opposed to standard asset class decompositions.
When many asset classes plunged together during the 2008 market downturn despite their apparent differences, it became increasingly apparent that a seemingly well-diversified portfolio could exhibit a concentrated set of factors. When adopted, the factor perspective helps investors understand the sources of risk and return of various assets, and better assess a portfolio's level of diversification. Yet, some ambiguity remains with respect to what factors should be used and how factor investing should be implemented.
In a new publication entitled Smart Beta and Beyond: Maximising the Benefits of Factor Investing", EDHEC-Risk Institute, with the support of Amundi ETF, Indexing & Smart Beta, provides useful pedagogical clarification with respect to the benefits of factor investing in an institutional context.
Source: EDHEC-Risk Institute
Enhancing the performance of alternatives with gold
February 1, 2018--In recent years, buy-and-hold investors such as pension funds, endowments, insurance companies, and sovereign wealth funds (SWFs) have gradually increased their investments in alternative assets to diversify their portfolios and boost returns. 'Alternatives' make up 23% of SWF portfolios and 24% of global pension funds, up from single digits in 2000.
Alternatives can offer attractive returns but be highly correlated to the stock market during downturns and often require long holding periods. Our research suggests that gold can complement alternatives by providing returns, improving diversification, adding liquidity, and enhancing overall portfolio performance.
Source: World Gold Council (WGC)
The Financial Secrecy Index 2018
January 31, 2018--The Financial Secrecy Index ranks jurisdictions according to their secrecy and the scale of their offshore financial activities.
A politically neutral ranking, it is a tool for understanding global financial secrecy, tax havens or secrecy jurisdictions, and illicit financial flows or capital flight.
Shining light into dark places
An estimated $21 to $32 trillion of private financial wealth is located, untaxed or lightly taxed, in secrecy jurisdictions around the world. Secrecy jurisdictions-a term we often use as an alternative to the more widely used term tax havens-use secrecy to attract illicit and illegitimate or abusive financial flows.
Source: financialsecrecyindex.com
Oil prices fall for third day on inventory build
January 31, 2018--U.S. oil prices fell for a third day on Wednesday after data from an industry body showed crude stocks rose more than expected last week, while a selloff in other commodities, stocks and bonds added to the bearish tone.
Source: Zawya.com
Investor Confidence Rose in January by 6.4 points to 102.1
January 30, 2018--Investor Confidence in Europe Shows Marked Enthusiasm
State Street Global Exchange today released the results of the State Street Investor Confidence Index(R)(ICI) for January 2018.
The Global Investor Confidence Index increased to 102.1, up 6.4 points from December's revised reading of 95.7. Investors across all regions showed an improved appetite for risk, with the European ICI rising by 16.0 points to 113.4, the Asian ICI increasing by 6.1 to 100.8, and the North American ICI increasing by 1.7 points to 97.2.
Source: State Street Corporation
BMO Annual ETF Outlook Report: Global ETF Industry Had Record Breaking Year in 2017
January 30, 2018--Global ETF market hit record high of US$4.6 trillion in AUM
Key trends for 2018: fixed income and thematic investing
Canadian ETF industry expected to reach C$400 billion in AUM by 2023.
BMO Global Asset Management (BMO GAM) today released its annual ETF Outlook Report, which examines the growth of the Exchange Traded Fund (ETF) market in 2017, and highlights the opportunities and challenges for the year ahead.
According to the report, the global ETF market hit a record high of US$4.6 trillion assets under management (AUM) at year-end, which included over US$649 billion in new assets.
The Canadian ETF market, once again, had a record year, with total AUM reaching C$145 billion and inflows of C$26 billion-an increase of 56 per cent from 2016.
The Canadian equity ETF with the most inflows last year was BMO S&P/TSX Capped Composite Index ETF (ticker: ZCN).
The Canadian fixed income ETF with the highest inflows last year was BMO Aggregate Bond Index ETF (ticker: ZAG).
The U.S. ETF market ended the year with US$3.4 trillion in AUM and had US$465 billion in new assets.
The European ETF market had a strong year, with US$762 billion in AUM-a 40 per cent increase from last year-and inflows just over US$102 billion.
The Asia Pacific market had a record-breaking year as well, with inflows of US$61 billion and the total ETF market surpassing US$437 billion.
view the BMO Global Asset Management BMO Global Asset Management ETF Outlook 2018
Source: BMO Financial Group
Not Making A Mint: Bitcoin Dives To Below $10,000; Ethereum, Crypto Stocks Plunge
January 30, 2018--Bitcoin lost nearly a tenth of its value Tuesday, crashing below the $10,000 level amid new regulatory measures in the U.S. and South Korea and sweeping advertising curbs by Facebook (FB).
Other cryptocurrencies and Bitcoin- and blockchain-related stocks tumbled as well. Investors were selling a wide range of financial assets Tuesday, including stocks and commodities.
Source: Investor's Business Daily,
EDHECinfra reveals industry standard for unlisted infrastructure benchmarks
January 30, 2018--Based on preferences expressed by major institutions in a new survey, EDHECinfra is releasing a taxonomy of global indices and sub-indices to structure the infrastructure asset class.
In its effort to create global benchmarks for infrastructure investors, the EDHEC Infrastructure Institute (EDHECinfra) recently surveyed asset owners and managers about how these indices should be structured to best address their asset allocation and performance monitoring needs.
In the largest survey of its kind over 200 major infrastructure investors, including asset owners representing more than 10% of global AUM in 2017 (US$10 trillion), revealed their preferences for the segmentation of unlisted infrastructure. This framework establishes an industry standard for unlisted infrastructure benchmarks.
Source: EDHECinfra
ETFGI reports that assets invested in Active ETFs and ETPs listed globally increased by 57.3% during 2017 to reach a new high of US$75.20 Bn
January 29, 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 increased by 57.3% during 2017 to reach a new high of US$75.20 Bn at the end of December. (All dollar values in USD unless otherwise noted.)
According to ETFGI's December 2017 Global Active ETF and ETP industry insights report, an annual paid-for research subscription service, assets invested in Active ETFs/ETPs listed globally grew by a record $27.40 Bn during 2017, over double the previous record of $11.20 Bn set in 2016. The increase of 57.3%, from $47.84 Bn at the end of 2016, also represents the greatest growth in assets since 2009 when markets recovered following the 2008 financial crisis.
Highlights
Assets invested in Active ETFs/ETPs listed globally increased by a record $27.40 billion during the year, to reach a new high of $75.20 Bn.
Source: ETFGI
Is $70 oil the new normal?
January 28, 2018--Surge in oil reflects the strength of the world economy
The global economy is poised to cope well even if oil prices will remain at around $70 per barrel throughout 2018, energy experts said.
Oil hit $71 a barrel on Thursday for the first time since 2014, supported by Opec-led supply curbs. It eased to $70.52 on Friday. view more
Source: Zawya.com
