Global ETF News Older than One Year
IMF Working paper-Investment in Emerging Markets We Are Not in Kansas Anymore...Or Are We?
April 3, 2015--Summary: We document that (i) although private investment growth in emerging markets has decelerated in recent years, it came down from cyclical highs and remains close to pre-crisis trends; and (ii) investment-to-output ratios generally remain close to or above historical averages.
We show that investment is positively related to expect future profitability, cash flows and debt flows, and negatively associated with leverage. Critically, it is also positively related to (country-specific) commodity export prices and capital inflows. Lower commodity export prices and expected profitability, a moderation in capital inflows, and increased leverage account for the bulk of the recent investment deceleration.
Source: IMF
World Gold Council considers launch of new London exchange
April 2, 2015--The gold industry's leading trade body and half a dozen banks have agreed to explore the idea of establishing an exchange in London as the existing market faces greater regulation.
The World Gold Council, a group consisting of 19 gold miners, and at least five banks are participating in initial discussions, according to people familiar with the matter.
Source: gata.org
China's currency may be poised for steady appreciation ahead of historic IMF decision
April 2, 2015--Executive Summary:
China's currency is eligible for inclusion in the Special Drawing Rights (SDR), a global basket of reserve currencies run by the International Monetary Fund (IMF)
Upon inclusion, every IMF member's central bank will be required to hold China's currency in reserve
We expect demand for China's currency to spike as the IMF's decision approaches
Since the financial crisis of 2008, China has been pursuing a policy of internationalization of its currency the renminbi (RMB). One of the most important milestones for the RMB's ascent onto the world stage is its potential inclusion within the IMF's Special Drawing Rights (SDR), a basket of reserve currencies. Upon its inclusion, every IMF member country's central bank will be required to purchase RMB to hold in reserve. We predict there will be a surge in demand for China's currency as a result. In order to potentially benefit from the inclusion, we believe U.S. investors should consider seeking RMB exposure ahead of the IMF's decision in January 2016.
Source: KraneShares
ETF Assets Head for $3 Trillion
April 2, 2015--Clear evidence that the trend toward passive products is moving faster than expected.
Only this January, PwC issued a report projecting that global ETF assets under management would double to $5 trillion by 2020....
Source: IFA Magazine
Mutual fund study says only 2 percent of assets redeemed mid-crisis
April 2, 2015--Investors redeemed about 2 percent of stock and bond fund assets in the heat of the financial crisis,
suggesting these funds are not sources of systemic risk, a research company for asset managers said.
Source: FS Core
In new research, EDHEC-Risk Institute proposes a comprehensive framework to measure performance in privately-held infrastructure equity investments
April 2, 2015--A new paper entitled "The Valuation of Privately-Held Infrastructure Equity Investments," drawn from the Meridiam and Campbell Lutyens research chair at EDHEC-Risk Institute on "Infrastructure Equity Investment Management and Benchmarking," contributes a rigorous valuation framework to the debate on the benchmarking of privately-held infrastructure equity investments.
The study also proposes a parsimonious data collection template, which can be used on an industry-wide basis to improve existing knowledge of the performance of privately-held infrastructure equity investments on an ongoing basis.
view the EDHEC Publication The Valuation of Privately-Held Infrastructure Equity Investments
Source: EDHEC-Risk Institute
IMF Working paper-How Did Markets React to Stress Tests?
April 1, 2015-- Summary: We use event study methods to compare the market reaction to U.S. and EU-wide stress tests performed from 2009 to 2013. Typically, stress tests have a positive impact on stressed banks' returns.
While the 2009 U.S. stress test had a large positive outcome, the impact of subsequent U.S. exercises decreased over time. The 2011 EU exercise is the only EU-wide stress test that resulted in a significant negative market reaction. Comparing past exercises suggests that the qualitative aspects of the governance of stress tests can matter more for stock market participants than technical elements, such as the level of the minimum capital adequacy threshold or the extent of data disclosure.
view the IMF Working paper-How Did Markets React to Stress Tests?
Source: IMF
Average daily volume of 9.6 million contracts at Eurex Group in March
April 1, 2015--In March, the international derivatives exchanges of Eurex Group recorded an average daily volume of 9.6 million contracts (March 2014: 9.4 million). Of those, 7.3 million were Eurex Exchange contracts (March 2014: 7.0 million), and 2.3 million contracts (March 2014: 2.4 million) were traded at the U.S.-based International Securities Exchange (ISE).
In total, 159.8 million contracts were traded at Eurex Exchange and 50.0 million at the ISE.
Source: Eurex
Emerging markets: The great unravelling
April 1, 2015--Developing economies are suffering their biggest capital outflows since the financial crisis
Faced with recession, decade-high inflation, a fiscal crisis and water rationing, more than 1m Brazilians took to the streets last month to protest against corruption and mismanagement in their government.
Source: FT.com
Buy Side, Sell Side Redefine Relationship
April 1, 2015--The buy side is looking to the sell side for help in navigating a new market structure characterized by lit and dark venues, algorithmic and high-speed trading, complex order types, and fragmentation.
The starting point for the conversations that are taking place is the fact that "at the heart of it, there’s a commercial relationship between the buy side and the sell side, where the buy side wants to obtain products and services that the sell side provides, whether it be research, execution, prime brokerage, or ...
Source: Markets Media
