Global ETF News Older than One Year
IMF Working paper-Liquidity Stress Tests for Investment Funds: A Practical Guide
October 31, 2017--Summary:
This paper outlines a framework to perform liquidity stress tests for investment funds. Practical aspects related to the calibration of the redemption shock, the measurement of liquidity buffers and the assessment of the resilience of investment funds are discussed.
The integration of liquidity stress tests with banking sector stress tests and possible bank-fund interlinkages are also covered.
view the IMF Working paper-Liquidity Stress Tests for Investment Funds: A Practical Guide
Source: IMF
IMF Working Paper-Measuring Global and Country-Specific Uncertainty
October 30, 2017--Summary:
Motivated by the literature on the capital asset pricing model, we decompose the uncertainty of a typical forecaster into common and idiosyncratic uncertainty. Using individual survey data from the Consensus Forecasts over the period of 1989-2014, we develop monthly measures of macroeconomic uncertainty covering 45 countries and construct a measure of global uncertainty as the weighted average of country-specific uncertainties.
Our measure captures perceived uncertainty of market participants and derives from two components that are shown to exhibit strikingly different behavior. Common uncertainty shocks produce the large and persistent negative response in real economic activity, whereas the contributions of idiosyncratic uncertainty shocks are negligible.
view the IMF Working paper-Measuring Global and Country-Specific Uncertainty
Source: IMF
Assets of world's largest fund managers passes US$80 trillion for the first time
October 30, 2017--Passively managed assets continue to gain share of total assets at the expense of active management
Total assets under management (AuM) of the world's largest 500 managers grew to US$ 81.2 trillion in 2016, representing a rise of 5.8% on the previous year, according to latest figures from Willis Towers Watson's Global 500 research.
The research, which takes into account data up to the end of 2016, found that AuM for North American managers increased by 7.7% over the period and now stand at US$ 47.4 trillion, whilst assets managed by European managers, including the UK, increased by 2.8% to US$ 25.8 trillion. However, UK-based firms saw AuM decline for the second consecutive year, falling by 4.5% in 2016 to US$ 6.3 trillion.
Source: Willis Towers Watson
ETF Securities Weekly Flows Analysis-Bargain hunters look for laggard platinum to play catch-up
October 30, 2017--Platinum ETPs receive largest weekly inflows in 18 months, totalling US$43.2mn.
Gold ETP inflows resume, totalling US$42.8mn, as investors remain defensive.
Oil ETPs have experienced outflows in 14 of the past 15 weeks, totalling US$459mn over the period.
Highest inflows for copper ETPs in eight weeks, totalling US$6.1mn.
Platinum ETPs receive largest weekly inflows in 18 months, totalling US$43.2mn. Platinum has been by far the laggard of the precious metals sector with just 0.7% gains, compared to the stellar performance of palladium with 43.2% in 2017. Bargain hunters are expecting this underperformance to turn around, driving inflows in three out of the past four weeks. Meanwhile, palladium ETPs have seen investors booking profits, with three consecutive weeks of outflows, totalling US$9.6mn over that period.
Source: etfsecurities.com
IMF warns volatility products loom as next big market shock
October 30, 3027--Assets invested in such strategies estimated to have risen to about $500bn
The International Monetary Fund has warned that the increasing use of exotic financial products tied to equity volatility by investors such as pension funds is creating unknown risks that could result in a severe shock to financial markets.
Source: FT.com
PWC-Global Assets under Management set to rise to $145.4 trillion by 2025
October 30, 2017--In a new report 'Asset & Wealth Management Revolution: Embracing Exponential Change', PwC anticipates that global Assets under Management (AuM) will almost double in size by 2025, from US$84.9 trillion in 2016 to US$111.2 trillion by 2020, and then again to US$145.4 trillion by 2025.
While the report predicts rapid growth for the asset & wealth management industry, it also warns that firms needs to take action now, if they're to survive an exponential level of change.
view the PWC Asset & Wealth Management Revolution: Embracing Exponential Change report
Source: PWC
Global assets forecast to swell to $145tn by 2025
October 30, 2017--Surge in pension savings as people age, and rising emerging market wealth spur growth
Money run by investment managers is forecast to surge by more than 70 per cent to $145tn by 2025 if interest rates globally stay relatively low and economic growth is sustained, according to a new report that underlines the phenomenal growth in the asset management sector since the financial crisis.
Source: FT.com
IMF-Global Liquidity Transmission to Emerging Market Economies, and Their Policy Responses
October 30, 2017--Summary:
This paper distills and identifies global liquidity (GL) momenta from the macro-financial data of advanced economies through a factor model with sign restrictions as policy-driven, market-driven, and risk averseness factors.
Using a panel factor-augmented VAR, we investigate responses of emerging market economies (EMEs) to GL shocks. A policy-driven liquidity increase boosts growth in EMEs, elevating stock prices and currency values, while a risk averseness rise has an opposite effect. A market-driven GL expansion boosts stock markets and lowers funding costs, promoting competitiveness and current account. Inflation targeting EMEs fare better than EMEs under alternative regimes with respect to macrofinancial volatility.
Source: IMF
$63 Trillion of World Debt in One Visualization
October 27, 2017--If you add up all the money that national governments have borrowed, it tallies to a hefty $63 trillion.
In an ideal situation, governments are just borrowing this money to cover short-term budget deficits or to finance mission critical projects. However, around the globe, countries have taken to the idea of running constant deficits as the normal course of business, and too much accumulation of debt is not healthy for countries or the global economy as a whole.
Source: visualcapitalist.com
DECPG Global Weekly-October 27, 2017
October 27, 2017--Taking Stock
U.S. GDP growth remained robust in Q3; the composite PMI hit a 9-month high in October. The first reading on U.S.
Q3 GDP came in at 3 percent (q/q saar), above market expectations, following the 3.1 percent growth recorded in Q2 (Figure
1). The Q3 expansion reflected strong contributions from inventory investment and net exports, which were partially offset by a slowdown in personal consumption and non-residential fixed investment.
Meanwhile, the Markit flash U.S. composite purchasing managers' index (PMI) for October came in at a 9-month high of 55.7, up from 54.8 in September, suggesting that U.S. private sector growth picked up in October, partly due to a rebound in the manufacturing sector (a reading above 50 signals expansion). ECB kept policy rates on hold, extended bond purchases until September 2018 but halved the pace.
Source: World Bank
