Global ETF News Older than One Year
Smart beta ETFs have hedge funds in their sights
December 19, 2016--ETFs that focus on investing 'factors', or characteristics of asset classes, pose a threat.
Source: FT.com
Year in a Word: ETF
December 19, 2016--Popularity of the alternative to mutual funds has soared.
Source: FT.com
Deutsche Bank cuts ties with 3,400 clients in trading business
November 17, 2016--Deutsche Bank's (DBKGn.DE) Global Markets division will cut ties with about 3,400 clients in its debt and equities sales activities, the bank said on Friday.
Deutsche Bank will immediately cease debt sales services to some financial institutions and hedge funds as well as equity sales activities, the execution of equities trading orders and equity structuring activities for some clients, a spokesman said, citing an internal memo.
Source: Reuters
Natixis.com-Institutional Outlook: Forecasting Dynamic Changes
December 16, 2016--Institutional investors anticipate a year of dramatic change in 2017. A global wave of populism is upending conventional thinking about politics and economics. Central bank policies, which have driven investment performance for nearly a decade, are beginning to diverge
The U.S. Federal Reserve is likely to raise rates, while other central banks are challenged to scale their asset purchase programs. The upshots are concerns among institutional investors about volatility, geopolitical risk, and monetary policy, which we see them addressing using a three-part approach:
view the 2016 GLOBAL SURVEY OF INSTITUTIONAL INVESTORS report
Source: ngam.natixis.com
IMF Working paper-Inequality and Growth: A Heterogeneous Approach
December 16, 2016--Summary: The combination of stagnant growth and high levels of income inequality renewed the debate about whether a more even distribution of income can spur economic activity. This paper tests for cros-country convergence in income inequality and estimates its impact on economic growth with a heterogeneous panel structural vector autoregression model, which addresses some empirical challenges plaguing the literature.
We find that income inequality is converging across countries, and that its impact on economic growth is heterogeneous. In particular, while the median response of real per capita GDP growth to shocks in income inequality is negative and significant, the dispersion around the estimates is large, with at least one fourth of the countries in the sample presenting a positive effect. The results suggest that the negative effect is mainly driven by the Middle East and Central Asia and the Western Hemisphere across regions, and emerging markets across income levels. Finally, we find evidence that improved institutional frameworks can reduce the negative effect of income inequality on growth.
view the IMF Working paper-Inequality and Growth: A Heterogeneous Approach
Source: IMF
Lipper-A Tale of Two Cities: ETF Flows and Mutual Fund Flows Are Vastly Different in Q4
December 16, 2016--For the quarter to date through December 14, 2016, investors have collectively injected some $13.5 billion into mutual funds and exchange-traded funds (ETFs).
The headline flows numbers are a bit misleading though; equity funds, taxable bond funds, and municipal bond funds have witnessed net outflows of $4.1 billion, $12.0 billion, and $12.8 billion, respectively, while money market funds have taken in $42.4 billion.
Source: lipperalpha.financial.thomsonreuters.com
DECPG Global Weekly- December 16. 2016
December 16, 2016--TAKING STOCK
U.S. Federal Reserve raised interest rates; industrial production fell
Euro Area industrial production contracted again in October; employment growth inched up
The Bank of Japan's index of business sentiment rose for the first time in 18 months
China's retail sales, industrial production, and fixed asset investment remained robust in November
The Bank of Uganda cut its policy rate
WEEKLY INSIGHT
How Could Negative Interest Rate Policies Affect Financial Stability?
Negative Interest Rate Policies (NIRP) could pose risks to financial stability if rates go substantially below zero or if NIRP are employed for a protracted period of time. Adverse consequences of NIRP could include erosion of profitability of banks and other financial institutions, and excessive risk-taking by investors.
Source: World Bank
IOSCO stresses importance of implementation and disclosure related to new accounting standards
December 15, 2016--The Board of the International Organization of Securities Commissions (IOSCO) published today a Statement on Implementation of New Accounting Standards related to revenue, financial instruments, and leases.
The three new International Financial Reporting (IFRS) Standards, issued by the International Accounting Standards Board, are expected to significantly affect the financial statements of many issuers globally, given the breadth of their applicability.
Source: IOSCO
Renaissance Capital- Preliminary 2016 Global Annual IPO Review
December 14, 2016--Global IPO Market Fails to Lift Off
Hit by volatile equity markets in the beginning of the year, global IPO issuance never got the chance to get off the ground in 2016 as investors grappled with uncertainty around the world, including the unexpected results of the Brexit vote and the US presidential election.
Global IPOs raised only $103 billion in 2016, down 34% from 2015''s already subdued levels and 31% below the ten-year median ($149 billion).
Source: Renaissance Capital
Global Economy Sees Sharp Contraction in Short-term Debt Flows, Foreign Direct Investment Remains Steady: World Bank
December 14, 2016--New data on International Financial Flows through 2015 now available
For the first time since the financial crisis, principal repayments on external debt held by low- and middle-income countries exceeded lending inflows, according to International Debt Statistics 2017 (IDS 2017) released today.
Short-term debt flows reversed to an outflow of $398 billion, about 3 times higher than the inflow in 2014. Meanwhile long-term debt flows remained positive but plummeted to $214 billion, half the previous year's level. As a result, external debt stock declined by 6 percent, to $6.7 trillion, equivalent to an average of 25 percent of Gross National Income (GNI).
:view the International Debt Statistics 2017
Source: World Bank
