Global ETF News Older than One Year
Infographic-IMF Growth Forecasts: Missing the Mark So Far
April 8, 2016--Projections on the global economic recovery have been overestimated by most policymakers and institutions for some time now. The International Monetary Fund (IMF) has been no exception to this fallacy.
Whether it is simple error, wishful thinking, or a complex system that is to blame, the economists at the IMF have now missed the mark for five years in a row on their global real GDP growth forecasts. After multiple revisions downward, their most recent January 2016 report finally estimated growth for this year to be a mediocre 3.4%.
BlueStar Israel Equity Update: Relief Rally? Or Something More?
April 7, 2016--Israeli Global Equities, as measured by BIGI(R), rallied strongly in March, rising by 4.99%, significantly outperforming other
Israeli equity benchmarks.
Despite this strength, BIGI(R)underperformed major equity indexes in the U.S., Europe and in emerging markets.
Source: BlueStar
WGC-Market Update: Gold outshines the market in Q1 2016
April 7, 2016--A glittering start to 2016
The gold price staged a spectacular rally in the first quarter of this year, rising by 17% in US dollar terms. This was its best performance in almost three decades, significantly outperforming other major stock, bond and commodity indices.
The rally, in our view, was supported by five key factors:
Ongoing concerns about economic growth and financial stability in emerging markets
A hiatus in the rise of the US dollar
The implementation of negative interest rate policies by leading global central banks
The return of pent up investment demand for gold
Price momentum (i.e. investors following gold's upward trend).
Source: WGC (World Gold Council)
Europe and Central Asia: Growth Struggles in the West, Volatility Increases in the East
April 7, 2016-- The economies of Europe and Central Asia (ECA) continue to face difficult headwinds in an increasingly complex and uncertain global economic environment, with short-term prospects differing substantially across countries, according to a new World Bank report.
Following a contraction of 1.1 percent in 2015, GDP in Eastern Europe and Central Asia (1) is expected to show practically no growth in 2016, implying a downward adjustment of more than one percentage point since late last year. Especially large are the downward adjustments for the South Caucasus (3.3 percentage points), Central Asia (1.6 percentage points) and Russia (1.3 percentage points).
view the World Bank report-The impact of China on Europe and Central Asia
Source: World Bank
Institutional Investors Increasingly Embrace Factor Investing
Desire for Improved Returns, Enhanced Risk Management and Transparent Portfolio Construction Driving Demand
April 6, 2016--Institutional investors are increasingly employing factor-based strategies across their investment process, a new study conducted by The Economist Intelligence Unit and sponsored by BlackRock has revealed.
Respondents believe factors can help them deliver long-term outperformance, decrease overall portfolio risk, increase transparency in portfolio construction, and better understand past and future drivers of return.
Source: BlackRock
IMF-Emerging Markets Show More Resilience to Capital Flow Cycle
April 6, 2016--Net capital flows to emerging market economies slowed significantly since 2010
Slowdown associated with decline in growth prospects, but without resulting in high incidence of debt crises as in past
Greater exchange rate flexibility, foreign reserves, and lower public debt can help
Despite lower capital inflows and higher capital outflows since 2010, emerging market economies have remained resilient.
A new study, published in the IMF's April 2016 World Economic Outlook report, takes a closer look at more than 40 emerging market economies to understand the drivers of declining capital flows since 2010.
Source: IMF
Structural Reforms in Advanced Economies: Pressing Ahead and Doing them Right
April 6, 2016--Product and labor market reforms raise output and employment in the medium term
Complementary macroeconomic policies required to maximize short-term benefits
Need for careful prioritization and sequencing of reforms
In the current environment of persistent weak economic activity in many advanced economies, there is a strong case for product and labor market reforms to boost jobs and growth, a new IMF study finds.
Source: IMF
Bond ETFs Attracted Record U.S., Global Inflows in First Quarter
April 6, 2016--BlackRock says the funds pulled in $43.7 billion worldwide
Money shifted toward riskier assets as the quarter progressed
Exchange-traded funds that invest in fixed income attracted record deposits in the first quarter.
Bond ETFs had inflows of $43.7 billion globally and $31.8 billion in the U.S. in the first three months of the year, according to a report Wednesday from BlackRock Inc. BlackRock's iShares unit is the world's leading provider of ETFs, funds that trade throughout the day like stocks.
Source: Bloomberg
London Remains on Top and Singapore Climbs to Third Place.
April 6, 2016--Today Z/Yen publishes the nineteenth Global Financial Centres Index (GFCI 19) The Index rates 86 financial centres.
London remains just ahead of New York to retain the number one position. Both cities gained four points in the ratings and London remains eight points ahead of New York.
Source: The Z/Yen Group of Companies
IOSCO Issues Study of Regulatory Approaches and Tools to Deal with Cyber Risk
April 6, 2016--The Board of the International Organization of Securities Commissions (IOSCO) today published a report that brings together insights and perspectives from IOSCO's various policy, stakeholder and regional committees on the topic of cyber resilience.
The cyber risk constitutes a growing and significant risk to the integrity, efficiency and soundness of financial markets worldwide.In fact, as the report indicates, the cyber risk is not "just another risk," but rather it is a unique, highly complex and rapidly evolving phenomenon. The human element of cyber risk, combined with rapidly evolving technologies in securities markets, suggests that this topic requires swift and sustained attention by regulators and market participants.
Source: IOSCO
