ETP industry records its best ever start to a year, attracting net new assets of US$67 billion
Announcement posted by FCR (Financial & Corporate Relations Pty Limited) 20 Apr 2012
Net new assets of US$67.3bn were attracted during Q1 2012, a 57% jump over Q1 2011’s US$42.8 billion. ETP flows can provide a barometer of investor sentiment and some of the ETP Landscape report’s key findings suggest an uptick in optimism.
Use of fixed income ETPs scaled new highs, eclipsing any prior first-quarter inflows with $US19.5billion. ETPs with investment grade bond and high yield corporate bond exposures pulled in US$3.6 billion globally in March 2012 and US$16.5 billion globally in the first quarter, accounting for 85% of all ETP fixed income inflows in Q1 2012.
Emerging markets equity products told a similar story with Q1 global inflows of US$13.7 billion.
Thematically, across the quarter, the top ten asset gathering ETPs worldwide included emerging markets equity, US large-cap equity, corporate bonds, high yield bonds, volatility products and gold.
Mark Oliver, Managing Director of iShares Australia commented:
“Historically, Q1 global ETP flows have been relatively low on the heels of cyclically high flows in Q4, but 2012 broke from this normal cyclical pattern. We believe that growing risk-appetite, in the context of low yields in most global markets, may have been a driver.
“Global flows into fixed income ETPs may offer an insight into how these products could gain acceptance in Australia, especially in the wake of the recent introduction of domestic fixed income ETFs now trading on the Australian Securities Exchange,” he said.
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About iSharesiShares is the global product leader in exchange traded funds with over 500 funds globally across equities, fixed income and commodities, which trade on 20 exchanges worldwide. In Australia, iShares has 26 ETFs listed on the Australian Securities Exchange (ASX), across both domestic and international indices. The first iShares ETF was listed on the ASX in October 2007. The iShares funds are bought and sold like common securities on securities exchanges. The iShares funds are attractive to many individual and institutional investors and financial intermediaries because of their relative low cost, liquidity and trading flexibility. Investors can purchase and sell shares or units (as the case may be) through any brokerage firm, financial adviser, or online broker, and hold the funds in any type of brokerage account. The iShares customer base consists of the institutional segment of superannuation plans and fund managers, as well as the retail segment of financial advisers and individual investors. Visit iShares.com.au for further information.
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