Global ETP flows reach a nine-year high

Global assets riseFlows into ETFs and other exchange-traded products (ETPs) globally reached a nine-year high of $61.2 billion (€57.5 billion) in January, according to a report published today by US investment house BlackRock. January’s flows were only slightly below the pre-financial crash high of $64.7 billion recorded in September 2008, which was the second best monthly figure on record. The new figures, which also show the best January flows on record, were – according to BlackRock – boosted by global reflation (a combination of rising wages and inflation) which particularly fuelled flows to US and Japanese equity funds. Cumulative_ETP_flows_graphOf the total, US equities drew in $19.3 billion. Rising optimism about tax reform and economic stimulus boosted small-caps and mid-caps, which gathered $4.3 billion and $4.1 billion respectively, and over $1 billion a piece went into real estate, technology and financial equity sector funds. Fixed income gathered $16.6 billion mostly in shorter maturities and in investment grade corporates as flows remained resilient to rising rates. Japanese equities in January brought in record monthly flows of $10.7 billion, boosted by a weaker yen, rising inflation and better earnings expectations. Flows into European ETP flows in January amounted to $10.2 billion. Emerging market equities gathered $2.5 billion amid a rebound in economic activity and a more measured US dollar in January – despite long-term expectations of dollar strengthening due to rising interest rates. Global_ETP_asstest_graph ©2017 funds europe

Sponsored articles

Mar 16, 2017

Portfolio Manager Davide Cataldo discusses the results of the Pioneer Investments’ survey on liquid alternatives and how investors can be encouraged to increase their allocation.

Mar 16, 2017

Heightened margin requirements for cleared and uncleared OTC derivatives pose a challenge for legitimate hedging activities and are driving financial institutions to explore alternative hedging...

Mar 16, 2017

Blockchain aims to radically change the way investors can access funds, says Olivier Portenseigne, Managing Director and Chief Commercial Officer of Fundsquare.

Mar 16, 2017

Greater efficiency must be embraced to ensure regulatory changes do not destroy choice for fund buyers, says Bernard Tancré of Clearstream.

Executive Interviews

CEO INTERVIEW: Munro gains three-year track record

Mar 16, 2017

Aviva Investors’ annual results this month were the third set since Euan Munro took over as CEO. Nick Fitzpatrick speaks to him about the ‘Aims’ fund at the heart of the firm’s outcome strategy.

DISTRIBUTION INTERVIEW: Tales of the unexpected

Mar 16, 2017

Laurence Terryn, a fund selector at Candriam, tells David Stevenson how the twists and turns of the past year’s macro environment flavoured her approach to fund selection.

Roundtables

ASSET SERVICING ROUNDTABLE: Under pressure

Mar 07, 2017

Funds Europe speaks to leading Luxembourg industry figures about the growing regulatory demands on asset servicers and how to remain profitable in spite of major investments in technology.

SEC LENDING ROUNDTABLE: Both a borrower and a lender be

Jan 11, 2017

Industry heavyweights, including agent lenders, discuss issues affecting the securities lending sector such as regulation and the types of collateral being used.