All entries by this author

MSCI to include China A shares in EM and ACWI indices

Jun 21st, 2017 | By
MSCI to include China A shares in EM and ACWI indices

MSCI has announced that it will include China A shares in its widely followed MSCI Emerging Markets and MSCI ACWI indices from June 2018. Remy Briand, Managing Director and Chairman of the Index Policy Committee at MSCI, said, “International investors have embraced the positive changes in the accessibility of the China A shares market over the last few years and now all conditions are set for MSCI to proceed with the first step of the inclusion.”



LSE bolsters FTSE Russell franchise with acquisition of Citi Fixed Income Indices

May 30th, 2017 | By
LSE bolsters FTSE Russell franchise with acquisition of Citi's Yield Book and Fixed Income Indices

London Stock Exchange Group (LSEG) has agreed to acquire The Yield Book and Citi Fixed Income Indices from Citigroup for $685 million in cash. The acquisition represents a significant opportunity for LSEG to enhance its fixed income data and analytics capabilities and strengthen its FTSE Russell index franchise, bringing an increase in benchmark AUM of around $2 trillion. The deal substantially bolsters FTSE Russell’s footprint and product offering in the fixed income space – one of the fastest-growing segments of the ETF industry – and follows the acquisition of the Russell Indexes business in 2014.



Platforms too passive in the provision of ETFs, finds Platforum

Oct 11th, 2016 | By
Platforms too passive in the provision of ETFs, finds Platforum

Fund platform research firm Platforum has published its latest UK fund distribution report on passives, ETFs and smart beta. The research reveals that while tracker fund assets have doubled since the implementation of the RDR, supported by widespread take-up by financial advisers, ETF adoption by financial advisers has been significantly less pronounced.



What’s in a name? For European ETFs, a lot of confusion

Sep 29th, 2016 | By
Simon Barriball, Head of ETP Trading Europe at ITG

By Simon Barriball, Head of ETP Trading Europe at ITG.

The name should say it all “Exchange Traded Fund”. You would reasonably expect that a fund describing itself as an Exchange Traded Fund would do just that – trade on exchange. The reality in Europe is quite different. Best estimates of European trading are that 50-70% of all ETF trading is off exchange on an OTC basis. One could therefore argue that ETFs fail to live up to their name. We should ask why this is and does it really matter?



Study reveals varying ETF preferences of older and younger investors

Sep 6th, 2016 | By
Study reveals varying ETF preferences of older and younger investors – Millenials vs Gen X vs Baby Boomers

Online broker E*Trade has published a study showing how exchange-traded fund preferences vary by age. Based on a survey of 946 self-directed active investors with at least $10,000 in an online account, it found that Millennials are more likely than Baby Boomers to show interest in a range of less mainstream ETFs, including commodity and foreign currency ETFs. Boomers, meanwhile, prefer dividend ETFs over any other type. Similarly, Millennials are interested in style ETFs, such as growth or value, and those focused on different market-cap brackets, such as mid- or small-cap, while Boomers are distinctly less keen.



ETFs largely unmoved by Jackson Hole speech

Aug 30th, 2016 | By
ETFs largely unmoved by Jackson Hole speech

The case for raising US interest rates has “strengthened”, the chairwoman of the Federal Reserve has said. Speaking at the Fed’s annual meeting at Jackson Hole, Wyoming, Janet Yellen was cautiously positive on the US economy and said “the case for an increase in the federal funds rate has strengthened in recent months”. Yellen’s comments have not come as much of a surprise, however, and ETFs were fairly quiet following the speech, with few major moves directly triggered by her comments. ETFs tracking the US utilities sector, such as SSGA’s $8 billion NYSE-listed Utilities Select Sector SPDR ETF (XLU), were perhaps the most obvious casualties of the speech, falling around 2.5%.



ETFs continue to attract the money

Aug 23rd, 2016 | By
ETFs continue to attract the money - John Redwood

John Redwood, Charles Stanley’s Chief Global Strategist, looks at the rising popularity of exchange-traded funds.

By the end of June this year, exchange-traded funds (ETFs) had swollen to more than $3 trillion worth of investments. In recent years more individuals and institutional investors have built portfolios around ETFs. More institutions have used ETFs to gain exposure rapidly to a given asset class or geographical area. More have introduced some ETFs into portfolios where they lack the expertise on the individual shares or commodities or properties they might otherwise buy.



EM rally has legs to run, says PIMCO

Aug 19th, 2016 | By
PIMCO: A new phase in the cold currency war

By Joachim Fels, PIMCO’s global economic advisor
From negative interest rates to Brexit to the Fed, investors have understandably been preoccupied with matters at hand lately. But it may be a good time to shift focus and look longer term: Over the past few years, emerging markets (EM) have been quietly undergoing positive, fundamental change that we think will likely increase value in the asset class.



PIMCO: Regulation and Demographics – Two Factors Behind the Rise of Sustainable Investing

Aug 18th, 2016 | By
PIMCO: Regulation and Demographics - Two Factors Behind the Rise of Sustainable Investing

By Kwame Anochie, Account Manager and Alex Struc, Portfolio Manager at PIMCO.

Investors globally are becoming more engaged with the environmental, social and governance (ESG) factors that affect the well-being and smooth functioning of the global economy and markets. The widespread endorsement of the United Nations Principles for Responsible Investing initiative, which has over 1,500 signatories from over 50 countries, is a key example. Two primary drivers of this trend toward more sustainable investing are the changing demographic landscape and increased regulatory focus.



PIMCO: China – Are investors tapping the brake?

Jul 14th, 2016 | By
PIMCO: China - Are investors tapping the brake?

By Luke Spajic, executive vice president and portfolio manager.
MSCI’s recent decision to delay including China’s local shares in its widely tracked emerging markets equity index reflects the views of its clients: namely, the global investors who use the index as a benchmark for constructing portfolios and measuring their performance. To put the decision in perspective, China has the second-largest equity market in the world, and global investors will inevitably face the task of integrating these assets into their portfolios. But with the MSCI announcement, investors may be saying, “not yet.”