European ETF Market flows came to a halt in May 2015. NET NEW ASSETS (NNA) over the month amounted to EUR 47 million………
Marlène Hassine – Head of ETF Research – Lyxor ETF
Lyxor Etf Barometer – June 2015
This is compared with an average of EUR 8.1 billion for the first four months of 2015. Total Assets under Management were still up 22% vs. the end of 2014, reaching EUR 444 billion, and including a significant market impact (+14.1%*). Flows for Equity ETFs have slightly recovered whereas flows for fixed income were negative for the first time for two years in an increasingly volatile interest rate environment.
Equity ETF flows rebounded to EUR 806 million after losing EUR 1.5 billion in April. This can mainly be explained by the rebound in European ETFs with NNA of EUR 527 million. European region ETFs saw inflows of EUR 895 million. Country-wise, Germany gathered most of the inflows at EUR 954 million whereas flows were negative for the UK on the back of the election, losing EUR 629 million. US equity ETFs resumed their downtrend with EUR 507 million in outflows. Flows for Japanese equity ETFs continued their positive trend but at a slower pace, with EUR 345 million of NNA. Emerging market equity ETF flows reached a 10-month record high of EUR 702 million, mainly concentrated on broad ETFs as investors are starting to rebuild some exposure.
Fixed income ETFs experienced outflows for the first time in two years. Nearly all European fixed income categories were impacted by the bund sell-off at the beginning of May. Short strategies saw positive flows of EUR123M for the second consecutive month. On the opposite, European govies saw outflows of EUR 683 million, European Investment Grade Corporate bond flows were also negative to the tune of EUR442 million. This more volatile environment had a positive effect on money market funds, which continued to see positive flows of EUR 292 million for the third consecutive month.
Commodities inflows were close to February’s record high at EUR 207 million and concerned both broad and precious metals ETFs.
*75% of MSCI ACWI NTR +16.4% and 25% of the JPM Global aggregate +7.7% between 31/12/14 and 29/05/15 in EUR.