UBS’s UK defined contribution (DC) scheme and the local authority pension fund for Tyne & Wear have allocated £250m (€273m) and £650m, respectively, to equity index funds with climate change-related “tilts”.

The £1.6bn DC section of UBS’s UK scheme has switched the allocation of around a quarter of the main fund in its default investment option to the UBS Asset Management Climate Aware Fund.

The Tyne and Wear defined benefit fund, meanwhile, this week announced it had invested £650m in the “Future World Index Equity Fund” range, which is managed by Legal & General Investment Management (LGIM).

At UBS, the move follows a member survey. According to a UBS spokesperson, it asked members whether they were interested in investing in a more sustainable fund and what they would be willing to pay for it.

The answer was that they were interested but wanted a low fee option, so the trustee...

Environmental, Social and Governance (ESG) factors are increasingly being used by fund managers and organisations to select and maximise the performance of their investments.

Environmental Finance is a key source of information for responsible investors seeking ways in which to support projects that mitigate climate change or make a positive impact. More companies are now aligning their activities to the Sustainable Development Goals (SDG).

The 2020 Sustainable Investment Awards seek to recognise asset managers, analysts and data providers incorporating ESG across all asset classes -- fixed income, listed and private equity, debt funds, multi asset funds, infrastructure funds and fund of funds.

View the winners

JSE and FTSE Russell fixed income indexes partnership Waqas Samad, CEO of FTSE Russell; Mark Randall (JSE); Robin Marshall, Scott Harman and Gary Rynhoud (FTSE Russell) [[ webcastStartDate * 1000 | amDateFormat: 'MMM D YYYY h:mm a' ]] 90 mins

The Russell US Indexes are designed to reflect the ever-changing US equity market, and the annual reconstitution process is critical to maintaining accurate representation. During this highly-anticipated market event, the breakpoints between large, mid and small cap are redefined to ensure market changes that have occurred in the preceding year are captured. Companies are also revaluated to determine where they lie along the investment styles spectrum. 

A team of index, market, ETF product and exchange experts recently gathered on Nasdaq #TradeTalks, hosted by Nasdaq Global Markets Reporter Jill Malandrino, for a virtual panel discussion to exchange views and perspectives on the #RussellRecon, which concludes at market close this Friday, June 26.

It was a lively discussion highlighting the size and importance of the annual rebalance of the Russell US Indexes as well as the impact it has on a wide range of market participants:

Catherine Yoshimoto – director of product management, FTSE Russell: “Russell Reconstitution is a complete realignment of the Russell US Indexes to reflect market changes in the last year and impacts about $9 trillion in investor assets that follow the indexes. It is a closely watched, well communicated and transparent market event.”

Ed Coughlin – director of trading services, Nasdaq: “I would say it is the largest trade of the year. All eyes are focused on this day of the year...

JSE and FTSE Russell's Fixed Income Indexes Partnership Waqas Samad, CEO of FTSE Russell; Mark Randall (JSE); Robin Marshall, Scott Harman and Gary Rynhoud (FTSE Russell) [[ webcastStartDate * 1000 | amDateFormat: 'MMM D YYYY h:mm a' ]] 90 mins

The Russell US Indexes are designed to reflect the ever-changing US equity market, and the annual reconstitution process is critical to maintaining accurate representation. During this highly-anticipated market event, the breakpoints between large, mid and small cap are redefined to ensure market changes that have occurred in the preceding year are captured. Companies are also revaluated to determine where they lie along the investment styles spectrum. 

The Russell US Indexes are designed to reflect the ever-changing US equity market, and the annual reconstitution process is critical to maintaining accurate representation. During this highly-anticipated market event, the breakpoints between large, mid and small cap are redefined to ensure market changes that have occurred in the preceding year are captured. Companies are also revaluated to determine where they lie along the investment styles spectrum. 

Bluford “Blu” Putnam has served as Managing Director and Chief Economist of CME Group since May 2011. With more than 35 years of experience in the financial services industry and concentrations in central banking, investment research, and portfolio management, Blu serves as CME Group’s spokesperson on global economic conditions.

View more reports from Blu Putnam, Managing Director and Chief Economist of CME Group.

The COVID-19 crisis has impacted asset valuations, increased volatility and led to reduced liquidity in many cases. Most asset classes have been affected, and governments have stepped in to support financial operations. In this paper, we examine the effects of the crisis on the year-to-date liquidity of USD corporate bonds, as measured by the price liquidity ratio.

The price liquidity ratio calculated by Yield Book looks at market impact and measures the movement in price of a security for an executed trade of a given size. The price movement is calculated on an excess of curve basis, and then aggregated across the given index or sector. A higher ratio represents a larger movement in price for a given trade size and therefore shows lower liquidity.

 

Total US equity market capitalization down 1%, yet market cap of ten largest US stocks up more than 23%.  Market cap breakpoint separating small-caps (Russell 2000 Index) and large-caps (Russell 1000 Index) decreases by more than 16%. Smallest US company falls below $100 million for first time since 2009. ? Technology-dominated five largest companies remain the top five, with three topping $1 trillion and Microsoft again the largest US company. 

At this time of year, there is extensive discussion about the “Russell Rebalance” or as FTSE Russell, the owner of the index family officially calls it, the Russell Reconstitution.  Why does this matter and why should small cap companies care about it?

It starts with the fact that approximately $9 trillion is benchmarked to the Russell U.S. Indexes and $1.6 trillion is indexed directly to Russell U.S. indexes. This means that Index funds and ETFs that track the Russell 1000, 2000, 3000 and Microcap indexes will buy and sell about $90 billion worth of securities based on whether or not they are included. 

Summary:

 At the end of every June, FTSE Russell rebalances its U.S. indexes during its annual reconstitution to accurately weigh the 4,000 largest companies in the U.S. stock market by market capitalization.  The reconstitution is typically one of the most highly anticipated and heaviest trading days in...

2020 Russell US Indexes Reconstitution: Unlike any seen before? Jermal Chandler (Cboe Options Institute), Amy Whitelaw (BlackRock), Philip Lawlor and Catherine Yoshimoto (FTSE Russell) [[ webcastStartDate * 1000 | amDateFormat: 'MMM D YYYY h:mm a' ]] 60 mins