Investors flock to ETPs in droves in 2012
10 January 2013
News, Asia, Global
By ETFI Asia
BlackRock’s iShares business led the global industry in 2012 by capturing US$85.3 billion in new flows of the record-breaking $262.7 billion global exchange traded products (ETP) market flows.
All regions contributed to iShares growth. The iShares US product line led the way with a record $61 billion of new assets in 2012, surpassing the previous record for US iShares ETPs of $59.1 billion in 2007. In Europe, the business captured 56% of all new money entering European ETPs, recording $18.3 billion in net new flows. The iShares Canada business also had a strong year, with its assets under management (AUM) increasing to $42 billion, as the broader Canadian market posted the second highest rate of growth in ETF assets of any region for 2012.
iShares global AUM reached $758.6 billion as of December 31, 2012.
ETPs are attracting a broader base of global investors than ever before, driven by regional regulatory developments, deepening ETP liquidity, and increasing awareness among both retail and institutional clients of the benefits of ETPs. These efficient tools can be used for strategic and tactical asset allocation, access to niche exposures and sectors, cash deployment, and risk management and hedging.
Mark Wiedman, global head of iShares comments: “iShares continues to be the go-to product for all types of investors – from capital market participants looking for deep liquidity, to investors seeking specialised exposures, to a growing segment of the market using ETFs as buy and hold investment vehicles.
“As a leading provider, iShares delivers global products in an endeavour to meet client needs globally. This year, for instance, Asian and Latin American investors bought more than $10 billion of US and European-domiciled iShares, in addition to $2 billion in locally domiciled iShares.
“Fixed income was a key driver of flows globally, as investors of all kinds increasingly adopt ETFs as an essential instrument for accessing the bond markets. iShares captured $28.8 billion globally or 41% of all new flows into fixed income ETFs.”
Jane Leung, head of iShares, Asia Pacific, adds: “Asian investors are expected to continue to seek income and yield in different places, driving growth in fixed income products. Investment access to China through ETFs is also likely to develop as investors become more specific in their exposures, targeting those sectors that they believe will outperform in the long run. We expect assets under management and trading volumes in ETFs to grow significantly in Asia Pacific as a result.”
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