Global ETF News Older than One Year
IMF Working paper-On Swing Pricing and Systemic Risk Mitigation
July 18, 2017--Summary:
Swing pricing allows a fund manager to transfer to redeeming or subscribing investors the costs associated with their trading activity, thus potentially discouraging large flows.
This liquidity management tool, which is already used in major jurisdictions, may also help mitigate systemic risk. Here we develop and apply a methodology to investigate whether swing pricing does in fact help dampen flows out of funds, especially during periods of market stress. Drawing on evidence of first-mover advantage within a group of 'swinging' corporate bond funds, we provide policy considerations for enhancing the tool's effectiveness as a systemic risk mitigant.
view the IMF Working paper-On Swing Pricing and Systemic Risk Mitigation
Source: IMF
IMF Working paper-Basel Compliance and Financial Stability: Evidence from Islamic Banks
July 18, 2017--Summary:
The paper provides robust evidence that compliance with Basel Core Principles (BCPs) has a strong positive effect on the Z-score of conventional banks, albeit less pronounced on the Zscore of Islamic banks.
Using a sample of banks operating in 19 developing countries, the results appear to be driven by capital ratios, a component of Z-score for the two types of banks. Even though smaller on Islamic banks, individual chapters of BCPs also suggest a positive effect on the stability of conventional banks. The findings support the effective role of BCP standards in improving bank stability, whose important implications led to the Islamic Financial Services Board (IFSB) publication of new recommendations in 2015 to bring BCP standards in line with the Core Principles for Islamic Finance Regulation (CPIFRs) standards. Our findings suggest that because Islamic banks are benchmarked closely to BCPs, the implementation of CPFIRs should also positively affect their stability.
Source: IMF
Clean Energy Transition Will Increase Demand for Minerals, says new World Bank report
July 18, 2017--A new report released today by the World Bank highlights the potential impacts that the expected continuing boom in low-carbon energy technologies will have on demand for many minerals and metals.
Using wind, solar, and energy storage batteries as key examples of low-carbon or "green" energy technologies, the report, "The Growing Role of Minerals and Metals for a Low-Carbon Future" examines the types of minerals and metals that will likely increase in demand as the world works towards commitments to keep the global average temperature rise at or below 2°C.
view the World Bank The Growing Role of Minerals and Metals for a Low Carbon Future report
Source: World Bank
New UK listing rule to attract Aramco and beyond
July 17, 2017--Proposed changes to Britain's listing regime are likely to attract a series of state-backed companies to London's stock markets but as Silvia Antonioli reports, the new rules might lower the quality of companies on its stock exchange and hurt minority shareholder.
Source: Zawya.com
ULTUMUS-Global ETF Monitor
July 17, 2017--Europe
iShares has gained an edge in the European market, with the listing of a new low volatility ETF in Germany, the iShares Edge S&P 500 Minimum Volatility UCITS ETF (IS31)..
German banking titan Commerzbank will be launching a new note into Germany on Wednesday
Americas
ProShares has launched three new funds in the US, the ProShares UltraShort S&P500 (SDS), the ProShares Ultra VIX Short-Term Futures ETF (UVXY) and the ProShares VIX Short-Term Futures ETF(VIXY)...
Source has listed a new energy ETF in the United States, SRRCF which tracks the S&P Select Sector Capped 20% (Energy) Net Total Return Index...
Asia
Samsung has listed two new energy trackers in Korea (530033, 530032), which target energy infrastructure. 530033...
Taiwan's ETF market got two funds larger, with Cathay listing two new low volatility ETFs, the 00701 and 00702...
Source: ULTUMUS-Financial Data Management
ETF Securities Weekly Flows Analysis Gold to benefit from a more dovish Fed
July 17, 2017--Gold, platinum and silver ETPs to benefit further from a more dovish Fed.
Industrial metals ETPs saw US$31.5mn of inflows amid growing economic activity in the US and Europe and a potential surge in global infrastructure spending.
Inflows into oil ETPs returned after a one-week break as US oil inventories decline further.
Outflows from long EUR ETPs on high futures positioning and long USD ETPs on Yellen's testimony.
Gold, platinum and silver ETPs to benefit further from a more dovish Fed. Last week saw US$82 mn inflows in precious metals ETPs, led by gold (US$46.8mn), then silver (US$ 23.9mn), platinum (US$6.8mn) and the basket (US$4.1mn).
Source: etfsecurities.com
Global shift into alternative assets gathers pace
July 16, 2017--Investors turn to property, infrastructure, private equity and hedge funds.
Source: FT.com
DECPG Global Weekly-July 14, 2017
July 14, 2017--TAKING STOCK
U.S. producer and consumer price inflation slowed in June; retail sales fell
Euro Area industrial production rose more than expected in May
Japan core machinery orders contracted further in May
China consumer price inflation held steady in June; external trade remained strong
EMDE bond sales rose strongly in the first half of 2017
Source: World Bank
Interactive: Ranking the 20 Most Valued Cryptocurrencies Over Time
July 13, 2017--Many cryptocurrencies have followed Bitcoin, but none have been able to crack its dominance of the digital currency marketplace. The above interactive graphic, by CryptoReach, shows the top 20 cryptocurrencies ranked by market capitalization over the course of the past 2.5 years.
Source: visualcapitalist.com
Listed infrastructure is #fake_infra- EDHEC study shows that listed infrastructure equity offers zero diversification benefits, is not an asset class
July 13, 2017--EDHEC Infrastructure Institute-Singapore (EDHECinfra) shows that the booming listed infrastructure sector is based on a "fallacy of composition."
For the past fifteen years, infrastructure investment has been the preserve of large sophisticated investors but is now rapidly becoming more mainstream and asset owners of all sizes are considering investing in infrastructure. In this context, "listed infrastructure" has grown from a handful to more than one hundred different products in less than a decade, adding up to USD50bn and claiming an investment universe of USD2Tn.
Source: EDHEC Infrastructure Institute-Singapore (EDHECinfra)
