Global ETF News Older than One Year
LSE to Buy Frank Russell to Expand Play in Indexes, ETF
June 26, 2014--London Stock Exchange Group Plc (LSE) agreed to buy Frank Russell Co., a unit of Northwestern Mutual Life Insurance Co., for $2.7 billion to bolster its FTSE International Ltd. business.
LSE will pay for the acquisition with a rights issue of $1.6 billion and finance the rest with new and existing debt, according to a statement. The exchange said the takeover will boost earnings in the first full year.
Source: Bloomberg
IOSCO Issues Report on Risk Identification and Assessment Methodologies
June 26, 2014--The International Organization of Securities Commissions (IOSCO) today published a report on Risk Identification and Assessment Methodologies for Securities Regulators, which provides a practical overview of the methods, approaches and tools that IOSCO and securities regulators have developed to identify and assess emerging and potential systemic risks.
The IOSCO Committee on Emerging Risks prepared the report as part of the organization's ongoing effort to identify, analyze, and monitor systemic risk.
view the IOSCO Risk Identification and Assessment Methodologies for Securities Regulators report
Source: IOSCO
SEI Study: Active Exchange Traded Funds Remain On Growth Trajectory In 2014
Market Grew by 30 Products, $2.5 Billion AUM in Past Year
June 25, 2014--Actively managed exchange traded funds (ETFs) have seen significant growth in the number of products offered and assets under management over the past year and continue to gain popularity as an investment vehicle, according to a paper released today by SEI.
The paper, "Active ETFs: Revisited," notes that the active ETF market has grown by nearly 30 products and more than $2.5 billion assets under management in the past 12 months. This upward trend further demonstrates the attractiveness of active ETFs to both financial advisors and investors due to their lower costs, increased transparency and liquidity, and potential tax efficiency when compared to mutual funds.
Source: SEI
Chinese to liberalize renminbi, but will do it its way
June 25, 2014--For several years, a great dilemma has surrounded China's drawn-out campaign to open up its financial markets, liberalize capital flows and allow the renminbi (yuan) to become a much more important trade and investment currency on the world stage.
The hoped-for benefits are mighty ones, but so are the challenges. Full liberalization would make Beijing the servant and not the master of international monetary fluctuations.
The way of out of this dilemma has now become clearer.
Source: MarketWatch
China expands plans for World Bank rival
June 24, 2014--China is expanding plans to establish a global financial institution to rival the World Bank and the Asian Development Bank, which Beijing fears are too influenced by the US and its allies.
In meetings with other countries, Beijing has proposed doubling the size of registered capital for the proposed bank to $100bn, according to two people familiar with the matter.
Source: FT.com
Vanguard: 50% of advisers plan to increase ETF usage
June 24, 2014--Nearly all advisers surveyed by Vanguard Asset Management plan to maintain or increase their Exchange Traded Funds (ETFs) allocation over the next 12 to 24 months.
In the survey taken at its June Investment Symposium, 50% of the 220 advisers polled said they would increase their usage of Exchange Traded Funds (ETFs).
Source: International Adviser
New Study Adds Up the Benefits of Climate-Smart Development in Lives, Jobs, and GDP
June 23, 2014--STORY HIGHLIGHTS: With careful design, the same development projects that improve communities, save lives, and increase GDP can also fight climate change.
A new study examines the multiple benefits for a series of policy scenarios addressing transportation and energy efficiency in buildings and industry in five countries and the European Union.
It provides concrete data to help policymakers understand the broader potential of climate-smart development investments.
Source: World Bank
"Thousands of firms" could quit EU trading
June 23, 2014--Mifid II plans could force thousands of foreign firms out of Europe
Provisions within Mifid II to regulate direct electronic access could result in thousands of non-EU firms ceasing trading on European derivatives markets.
The European regulator Esma is currently consulting on the technical standards that will form the basis of the implementation of the Markets in Financial Instruments Directive or Mifid II.
Source: FOW
Fears mount over asset managers' shadow banking operations
June 23, 2014--The shrinking banking sector is creating a "major opportunity" for asset managers to step into the lending breach, but concern is mounting over their "shadow bank" operations and rising systemic importance.
The golden era for asset management comes as nearly $5tn in assets worldwide shifts out of investment banks following new US regulation that
Source: FT.com
Central Bank Reserve Managers More Cautious as Fed Tapers
June 23, 2014--Central bank reserve managers across the world are ready to take a more cautious approach to investment as the U.S. Federal Reserve continues to reduce its monetary stimulus, with the full effect of such tapering still to be felt so far as demand for riskier assets is concerned.
An annual survey of reserve managers found that the Fed's decision to wind down its monthly purchase program could have an impact on 60% of central banks in terms of their reserve management.
Source: Wall Street Journal
