Global ETF News Older than One Year
Passive grew 4.5 times faster than active in 2016
February 12, 2017--Investors concerned over high fees and disappointing performance vote with their feet.
The assets managed by passive mutual funds, which provide lower-cost exposure to markets by tracking an index, grew 18 per cent to $6.7tn last year, more than double the 8 per cent growth rate experienced in 2015.
Source: FT.com
IOSCO analyzes potential of tech-driven change in the securities market industry
February 8, 2017--A new report published today highlights the increasingly important intersection between financial technology (Fintech) and securities market regulation, and describes the impact it has on investors and financial services.
The IOSCO Research Report on Financial Technology, published by the International Organization of Securities Commissions (IOSCO), describes a variety of innovative business models and emerging technologies that are transforming the financial services industry, including:
financing platforms: peer-to-peer lending and equity crowdfunding;
retail trading and investment platforms, including robo-advisers and social trading;
view moreview the IOSCO Research Report on Financial Technologies (Fintech)
Source: IOSCO
IOSCO report shows progress made in implementation of Benchmark Principles
February 7, 2017--The Board of the International Organization of Securities Commissions (IOSCO) today published the Second Review of the Implementation of IOSCO's Principles for Financial Benchmarks in respect of the WM/Reuters 4 p.m. Closing Spot Rate.
The report found that the administrator had made very significant progress, with most of the recommendations from an earlier review having been implemented. However, some room exists to improve and refine recently implemented policies and practices.
Source: IOSCO
PWC-The Long View: How will the global economic order change by 2050?
February 6, 2017--Foreword
After a year of major political shocks with the Brexit vote and the election of President Trump, it might seem
brave to opine on economic prospects for 2017, let alone 2050.
However, I still think it is important to take a longer term view of global economic prospects that looks beyond the short-term ups and downs of the economic and political cycle, which are indeed very difficult to forecast. Instead our approach in this report, based on a rigorous modelling approach, focuses on the fundamental drivers of growth: demographics and productivity, which in turn is driven by technological progress and diffused through international trade and investment.
view the PWC-The Long View: How will the global economic order change by 2050?
Source: PWC
Passive investing advances on US bond market
February 5, 2017--Exchange traded funds and index-trackers control over a fifth of fixed-income market.
Source: FT.com
Index of Economic Freedom 2017
February 2, 2017--Executive Highlights
Key Findings of the 2017 Index
Per capita incomes are much higher in countries that are more economically free. Economies rated "free" or "mostly free" in the 2017 Index generate incomes that are more than double the average levels in other countries and more than five times higher than the incomes of people living in countries with "repressed" economies.
Not only are higher levels of economic freedom associated with higher per capita incomes, but greater economic freedom is also strongly correlated to overall well-being, taking into account such factors as health, education, environment, innovation, societal progress, and democratic governance.
In the 2017 Index, 103 countries, most of which are less developed or emerging economies, showed advances in economic freedom. Remarkably, 49 countries achieved their highest economic freedom scores ever. Two large economies (China and Russia) are included in this group.
view the Index of Economic Freedom 2017 report
Source: The Heritage Foundation
IMF-Measure up: A Better Way to Calculate GDP
February 2, 2017--To derive real GDP, the System of National Accounts 2008 (2008 SNA) recommends a technique called double deflation. Some countries use single deflation techniques, which fail to capture important relative price changes and introduce estimation errors in official GDP growth.
We simulate the effects of single deflation to the GDP data of eight countries that use double deflation. We find that errors due to single deflation can be significant, but their magnitude and direction are not systematic over time and across countries. We conclude that countries still using single deflation should move to double deflation.
view the IMF Measure up: A Better Way to Calculate GDP discussion note
Source: IMF
World Gold Council-Gold Demand Trends Full Year 2016
February 2, 2017--A four-year high in investment drove price gains and demand growth
2016 full-year gold demand gained 2% to reach a 3-year high of 4,308.7t.
Annual inflows into ETFs reached 531.9t, the second highest on record. Declines in jewellery and central bank purchases offset this growth. Annual bar and coin demand was broadly stable at 1,029.2t, helped by a Q4 surge.
Source: World Gold Council
Passive investing set to claim half of markets
February 2, 2017--Prediction of near-parity from 2021 as active managers battle to give superior returns
Source: FT.com
Global foreign direct investment fell 13% in 2016, but modest recovery expected in 2017-new figures
February 1, 2017--GITM Global flows of foreign direct investment (FDI) fell 13% in 2016 to an estimated $1.52 trillion as global economic growth remained weak and world trade volumes posted anemic gains, according to the latest UNCTAD Global Investment Trends Monitor.
"FDI recovery continues along a bumpy road. Particularly of concern is the sharp drop-off in manufacturing investment projects, which play such an important role in generating badly needed productivity improvements in developing economies," UNCTAD Secretary-General Mukhisa Kituyi said.
view the UNCTAD Global Investment Trends Monitor
Source: UNCTAD
