European ETF market flows rebounded in June 2015. Net New Assets (NNA) during this month amounted to EUR 1.5BN, after a negative month of May with EUR 13M of outflows. Total Assets under Management are up 18% compared with the end of 2014, reaching EUR 430BN, and included a still significant market impact (+10%*)………
Marlène Hassine – Head of ETF Research – Lyxor ETF
Lyxor Etf Barometer – July 2015
Investors are moving their allocation out of bonds and into equity ETFs that focus on the ‘safest’ countries or regions in what is an increasingly volatile environment, especially for interest rates.
Equity ETF flows rose significantly to EUR 3.1BN vs EUR 742M of inflows last month. Investors favoured developed equity ETFs with EUR 4.1BN of inflows. European indexation flows reached EUR 3.2BN with increased flows on both country and region ETFs, with inflows focusing on European core countries against a backdrop of volatility. Inflows reached EUR 1.2BN on Germany, EUR 378M on the UK following the election, EUR 189M on Switzerland and EUR 1.3BN on European region ETFs. US flows also rebounded, although to a lesser extent at EUR 367M, while Japanese flows continue to be sustained at EUR 413M. The May emerging market rally was short-lived, with EUR 472M of outflows in June mainly concentrated on Asian equities and broad indexations as Chinese equity markets lost 14% in June**. The only significant exception was India, with EUR 240M of inflows.
Fixed income indexation outflows continued to rise at EUR 1.7BN. Developed markets saw the bulk of outflows amid significant uncertainty regarding the interest rate trend following bund yield tension at the end of May and the Greek debt crisis. European Govies saw EUR 705M of outflows. EM debt ETFs also saw EUR 245M of outflows. On corporate bonds, outflows were mainly concentrated on investment grade bonds at EUR 403M, whereas they were more limited on high yield at EUR 80M.
Commodities flows were positive at EUR 95M, with positive flows on broad ETFs at EUR 139M, while precious metals saw outflows of EUR 43M.
*75% of MSCI ACWI NTR +11.5%, and 25% of the JPM Global aggregate +5.3% between 31/12/14 and 30/06/15 in EUR ** MSCI China A index performance in EUR between 1/6/15 and 30/6/15