Global ETF News Older than One Year
Basel Committee completes review of Principles for sound liquidity risk management and supervision
January 17, 2019--The Basel Committee on Banking Supervision has completed a review of its 2008 Principles for sound liquidity risk management and supervision. The review confirmed that the Sound Principles remain fit for purpose, and the Committee advises banks and supervisors to remain vigilant of liquidity risks in financial markets.
The Sound Principles underscore the importance for banks of establishing a robust liquidity risk management framework. As implementation of all its standards and guidelines is a high priority for the Committee, a review of the Sound Principles was initiated in 2017. The review also covered liquidity risk-related developments in financial markets since 2008.
Source: BIS
World Economic Forum-A brief history of globalization
January 17, 2019--When Chinese e-commerce giant Alibaba in 2018 announced it had chosen the ancient city of Xi'an as the site for its new regional headquarters, the symbolic value wasn't lost on the company: it had brought globalization to its ancient birthplace, the start of the old Silk Road. It named its new offices aptly: "Silk Road Headquarters".
The city where globalization had started more than 2,000 years ago would also have a stake in globalization's future.
Alibaba shouldn't be alone in looking back. As we are entering a new, digital-driven era of globalization-we call it "Globalization 4.0"-it is worthwhile that we do the same. When did globalization start? What were its major phases? And where is it headed tomorrow?
Source: World Economic Forum
Harnessing the long-term potential of dividend growth
January 16, 2019--Dividend growth strategies have often been regarded as attractive sources of income due to their resiliency in market downturns and subsequent participation in market rallies.
This paper explores the key characteristics and return patterns that have differentiated dividend growth strategies over time as well as explores the dividend growth methodology that ensures the long-term viability of dividends being paid.
Source: FTSE Russell
The Eurekahedge Report-January 2019
January 16, 2019--The benchmark Eurekahedge Hedge Fund Index was down 1.31%1 in December, down 3.85% year-to-date.
Total assets under management decreased by US$23.5 billion during the month as the sector witnessed performance-based decrease of US$11.3 billion while registering net asset outflows of US$12.2 billion.
Source: Eurekahedge
TrackInsight: Strong rebound in the hope of putting an end to trade disputes!
January 15, 2018--Stocks surged on bets that the United States and China would strike a deal to put an end to their trade war.
Indeed, it becomes a critical point as Chinese exports contracted strongly in December in the wake of tariff increases, pointing to further weakness in the world's second-largest economy in 2019 and deteriorating global demand.
The S&P500 ended the week with a gain of 2.54 percent after robust U.S. jobs data and dovish comments on interest rates by Federal Reserve Chairman Jerome Powell. The weaker than expected ISM services report for the month of December and the partial U.S. government shutdown did not really weigh on sentiment ahead of earnings season.
Source: trackinsight.com
Record year for passive funds as active fund outflows continue
January 15, 2019--The number of ETFs almost doubled in 2018.
Source: FT.com
IMF-How Much Should You Save for Retirement?
January 15, 2019--How much you need to save for retirement depends on your country's pension system. Our new research focuses on the interaction between saving and pension systems in an aging world. We use data from 80 countries to map public (government) and private savings in countries over the next 30 years, given their aging populations and the design of pension systems.
We find that trends in private saving drive the development of national saving. Assuming unchanged policies, population aging will drive up public spending on pensions by just over 2 percentage points of GDP by 2050. But the response of households' private saving differs markedly across countries, with pension system characteristics a major factor determining how much households save. Policymakers need to understand what drives these changes in saving rates, as savings provide a form of insurance against downturns and, by financing investment, stimulate long-term economic growth.
view the IMF The Future of Saving: The Role of Pension System Design in an Aging World
Source: IMF
Governors and Heads of Supervision endorse finalised market risk capital framework and Basel Committee work programme
January 14, 2019--At its meeting in Basel on Monday 14 January 2019, the Basel Committee's oversight body, the Group of Central Bank Governors and Heads of Supervision (GHOS), endorsed a set of revisions to the market risk framework and the Committee's strategic priorities and work programme for 2019.
The revisions to the market risk framework endorsed by the GHOS today enhance its design and calibration by:
introducing a simplified standardised approach for banks with small or non-complex trading portfolios;
clarifying the scope of exposures that are subject to market risk capital requirements;
enhancing the risk sensitivity of the standardised approach by revising the treatment of foreign exchange risk, index instruments and options;
Source: BIS
ETF growth sputters after markets' 'rocky ride' in 2018
January 11, 2019--Popular investment products still produced second-best year of sales.
Global inflows to exchange traded funds dropped by a fifth in 2018 after the first annual decline in the US stock market since the financial crisis dented investor appetite for lowcost index-trackers.
Source: FT.com
World Gold Council-Outlook 2019: Economic trends and their impact on gold
January 10, 2019--2018 ups and downs
Gold's price seesawed in 2018 as investor interest ebbed and flowed despite steady growth in most sectors of demand.
Gold faced significant headwinds for most of the year.
The dollar strengthened, the Fed continued to hike steadily while other central banks kept policy accommodative, and the US economy was lifted by the Trump administration's tax cuts. These factors fuelled positive investor sentiment which, in turn, pushed US stock prices higher, at least until the start of October.
But as geopolitical and macroeconomic risks continued to increase, emerging market stocks pulled back. Eventually, developed market stocks followed, in a selloff led by US tech companies. This resulted in short-covering in gold with its price ending the year near US$1,280/oz (-1% y-o-y).
Source: World Gold Council
