Global ETF News Older than One Year
ETFGI reports assets invested in active ETFs and ETPs listed globally reach record high of US$90.1 billion at the end of May 2018
July 2, 2018--ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that assets invested in active ETFs and ETPs listed globally reached a record high of US$90.1 Bn at the end of May 2018; representing an increase in assets of US$4.04 Bn from the previous record of US$86.1 Bn set at the end of April 2018. (All dollar values in USD unless otherwise noted.)
Highlights
Assets invested in actively-managed ETFs/ETPs listed globally increased by $4.04 Bn during May to reach a record $90.1 Bn.
In May 2018, actively-managed ETFs/ETPs listed globally saw net inflows of $3.20 Bn.
Active fixed income ETFs gathered the largest inflows in May, with net new assets of $1.83 Bn during the month, more than half of all active inflows.
Source: ETFGI
America's wealthy are moving to cash as market enthusiasm hits a wall
July 2, 2018--A CNBC survey finds that millionaires are more likely to increase cash and bonds than stocks in the next year.
Wealthy investors age 55 and under, as well as investors with $5 million or more, are the most likely groups to be pulling back on U.S. stocks.
These investors may be amassing dry powder for better opportunities to buy into the market.
Source: CNBC.com
World Economic Outlook Update, July 2018-Less Even Expansion, Rising Trade Tensions
July 2, 2018--Global growth is projected to reach 3.9 percent in 2018 and 2019, in line with the forecast of the April 2018 World Economic Outlook (WEO), but the expansion is becoming less even, and risks to the outlook are mounting. The rate of expansion appears to have peaked in some major economies and growth has become less synchronized. In the United States, near-term momentum is strengthening in line with the April WEO forecast, and the US dollar has appreciated by around 5 percent in recent weeks.
Growth projections have been revised down for the euro area, Japan, and the United Kingdom, reflecting negative surprises to activity in early 2018. Among emerging market and developing economies, growth prospects are also becoming more uneven, amid rising oil prices, higher yields in the United States, escalating trade tensions, and market pressures on the currencies of some economies with weaker fundamentals. Growth projections have been revised down for Argentina, Brazil, and India, while the outlook for some oil exporters has strengthened.
The balance of risks has shifted further to the downside, including in the short term. The recently announced and anticipated tariff increases by the United States and retaliatory measures by trading partners have increased the likelihood of escalating and sustained trade actions.
view the IMF World Economic Outlook Update, July 2018-Less Even Expansion, Rising Trade Tensions
Source: IMF
DECPG Global Weekly-June 29, 2018
June 29, 2018--TAKING STOCK
U.S. GDP growth in 2018Q1 was revised down slightly; PCE inflation firmed in May; consumer confidence dipped in June
Euro Area headline inflation picked up in June
Japan's unemployment rate fell to record low in May; retail sales growth slowed
EMDE assets remained under pressure
Oil prices moved higher
U.S. GDP growth in 2018Q1 was revised down slightly; PCE inflation firmed in May; consumer confidence dipped in June. The final reading of U.S. GDP growth in 2018Q1 came in at 2 percent (q/q, saar), below the previous estimate of 2.2 percent and the 2.9 percent growth recorded in 2017Q4. The slight downward revision mainly reflected a steeper-than-previously estimated slowdown in consumer spending.
Source: World Bank
Renaissance Capital Most Active IPO Market in Three Years
June 28, 2018--More companies went public in the 2Q18 than any quarter in three years, with 60 IPOs raising $13.1 billion. Quarterly proceeds exceeded every quarter during 2015-2017. Small-cap health care companies, mostly biotechs, made up over 40% of all IPOs.
Technology stole the show, averaging a stellar 61% average return, and boosting the quarterly average gain to 29%. Spotify's successful direct listing in April paved the way for a stampede of unicorns, but there were no indications that its untraditional listing process was going to find imitators. Venture capital-backed growth names like DocuSign and Pluralsight were joined by several large tech companies with private equity backing. By far the quarter's largest IPO came from insurance spin-off AXA Equitable, which raised $2.7 billion.
Source: Renaissance Capital
World Economic Forum-Financial Institutions Pressed to Support Businesses Tackling Deforestation as Governments Worldwide Tighten Land-Use Policies
June 28, 2018--Banks, lenders and investors in a $941 billion industry risk exposure from commodities linked to illegal or unsustainable deforestation-a major cause of climate change
New report urges financial institutions to support efforts to remove deforestation from value chains as business and governments tighten policies on agriculture and land-use.
The Roadmap to Financing Deforestation-Free Commodities report shows how financial institutions must adapt to a changing regulatory and market landscape post-Paris Agreement.
view the World Economic Forum The Roadmap to Financing Deforestation-Free Commodities report
Source: World Economic Forum (WEF)
The World Federation of Exchanges publishes revised ESG Guidance & Metrics
June 27, 2018--The World Federation of Exchanges ("WFE"), the global industry group for exchanges and CCPs, has today published a revised edition of its Environmental, Social & Governance (ESG) Guidance & Metrics.
Developed by the WFE's Sustainability Working Group and first published at the end of 2015, the WFE's ESG Guidance & Metrics are designed to provide a reference point for exchanges looking to introduce, improve or require ESG reporting in their markets.
Since its publication, over 35 stock exchanges around the world have issued or committed to issuing ESG reporting guidance for their listed companies.
Today's revised version seeks to update the 2015 document by:
Recognising intervening sustainability developments, such as the UN Sustainable Development Goals and the Task Force on Climate Related Financial Disclosures (TCFD) Recommendations;
Incorporating feedback received from investor groups on the initial WFE Guidance & Metrics document;
Adjusting the metrics based on implementation experience in certain markets:◦There are now 30 baseline metrics (33 in 2015) that form the revised guidance, covering indicators across a range of ESG categories, such as: emissions intensity; climate risk mitigation; gender pay ratio; human rights; ethics and anti-corruption; and disclosure practices.
view the WFE ESG Guidance and Metrics Revised June 2018
Source: World Federation of Exchanges ("WFE")
World Gold Council-Gold and climate change: An introduction
June 27, 2018--Gold is rare and, as with other precious metals, a lot of ore is mined and processed to produce small amounts of pure metal. The gold production process therefore uses a relatively high level of energy to bring finished gold to market and has a higher greenhouse (GHG) emissions intensity per tonne of finished product than many other bulk metals.
But the relatively small volumes of gold produced each year mean total emissions from newly-mined gold are significantly lower than from other major products sourced primarily from mining, such as steel, aluminium and coal.
Source: World Gold Council (WGC)
DECPG Global Monthly-June 2018
June 27, 2018--Overview
After reaching 3.1 percent in 2017 and 2018, global growth is expected to moderate as global economic slack dissipates, some major central banks remove policy accommodation, and the recovery in commodity exporters matures.
The recovery in regions with a large number of commodity exporters is expected to continue this year, but per capita income growth remains low in many countries.
The risks of disorderly financial market movements and escalating trade protectionism have increased in 2018.
Special Focus: Long-term Growth Prospects: Downgraded No More?
Consensus forecasts for long-term growth have recently stabilized after a series of downgrades since 2010.
Although this development could be a sign that the global economy is experiencing a healthy expansion, long-term forecasts are often overly optimistic.
These forecasts are still above potential growth estimates, and adverse structural forces continue to overshadow long-term growth prospects.
Source: World Bank
Autonomous Vehicles Will Clog City Centres unless Lawmakers Step Up, Says Boston Study
June 27, 2018--Shared autonomous vehicles will reduce the number of cars and overall travel times in cities but potentially worsen traffic and increase travel times in downtown areas, a World Economic Forum study suggests
To avoid pockets of increased congestion caused by switching from mass transit, state and local lawmakers must put forth policies and incentives that maximize the benefits of autonomous vehicles
Source: World Economic Forum
