European ETF market flows remained sustained in March 2015……..
Marlène Hassine – Head of ETF Research – Lyxor ETF
Lyxor Etf Barometer – April 2015
NET NEW ASSETS (NNA) during this month amounted to EUR 6.4 billion, nearly 20% above one-year average flows.
Total Assets under Management are up 20% vs. the end of 2014, reaching EUR 436 billion, and include a significant market impact (+13.7%*). ETFs on European and Asian equities and on fixed income have been the main beneficiaries of a bullish environment.
■ Equity indexation inflows were limited to EUR 2.4 billion, -26% vs. the one-year average. Investors are favouring European and Asian equity ETFs, supported by monetary policy that is still accommodative. European equity ETF inflows have reached EUR 4.9 billion only 14% below January 2015’s record high of EUR 5.7 billion. Asian equity ETFs inflows have reached a one year record high at EUR 931 million. Conversely, US Equity ETFs continue to register outflows for the second consecutive month, at a record level of EUR 2.2 billion. Emerging market equity ETF flows have been negatively impacted by the outlook of an interest rate increase in the US and have registered EUR 607 million in outflows.
■ Fixed income indexation inflows continue to be significant at EUR 3.9 billion, 72% higher than the one-year average of EUR 2.2 billion. In Europe, corporate bond indexations are still the main beneficiary of the funds channelled towards the credit market by the ECB quantitative easing measures. High yield indexations registered high inflows, boosted by the hunt for yield among investors due to the very low/negative interest rates environment.
■ Commodities flows have continued to rebound in March 2015 at EUR 197 million, mainly owing to positive flows on broad indexations in an environment characterised by stabilising oil prices.
*MSCI ACWI +13.7% between 31/12/14 and 27/3/15 in EUR.