European market has raised EUR 40Bn YTD*, almost as much as in the whole of 2016….
Arnaud Llinas, Head of ETFs and Indexing for Lyxor Asset Management
Lyxor has attracted nearly 15% of all net new ETF inflows in Europe since start of year*;
Lyxor is adapting its range to capture further market momentum.
Lyxor ETF enjoyed a strong start to 2017, building on growing investor appetite to become Europe’s second largest ETF provider with assets under management of EUR 60Bn*. Lyxor has secured nearly 15% of all new money flowing into the European market, and 18% of exchange traded volume since the beginning of the year, attracting net new assets of more than EUR 5.6Bn*.
Lyxor expects the European ETF market to continue its rapid ascent, with 2017 already shaping up as a record year with net new assets of EUR 40Bn year to date*, almost as much as in the whole of 2016. Arnaud Llinas, Head of ETFs and Indexing for Lyxor Asset Management, predicts that if the trend continues, the European ETF market could break the EUR 1,000Bn threshold by 2020.
Lyxor is reaping the benefit of investments made in 2016 to adapt to a rapidly-growing ETF market across all client segments. In particular, Lyxor ETF invested in its fixed income range, reaching the number 2 spot in this segment in Europe by AuMs*. Lyxor also added to its sales, marketing and portfolio management teams, doubling its ETF staff in the past four years. Going forward, Lyxor is planning to consolidate its position by capitalising on a strong culture for innovation. Upcoming initiatives include:
– A range of green ETFs starting with the first ever green bond ETF launched in March 2017;
– Completing the range of risk management ETFs designed to help investors protect against rising interest rates, inflation, currency fluctuation and increased volatility;
– New UK, US and Japanese Smart Beta dividend products.
In addition, Lyxor is looking to increase its European footprint by raising the proportion of Luxembourgdomiciled funds and increasing the share of physical ETFs to 50% to adapt to the needs of a new, more international client base. Lyxor’s moves on replication and domicile are driven by a pragmatic approach, and a desire to provide the best result for investors on every index they track. Lyxor will also continue to develop active ETF-based investment solutions for the retail distribution sector.
“The passive industry has doubled in size in the past ten years but there is still plenty of room to grow. What has changed today is the ETF market’s ever-growing client reach, as well as investors’ need not just for strategies providing market exposure, but for solutions to specific market challenges such as inflation or changing interest rates. With innovation as the cornerstone of its strategy, Lyxor has initiated important changes in 2016 to adapt to this challenge, which we believe will put us in a position of strength for the future,” Arnaud Llinas commented.
*All figures are as of May 15th, 2017. Source: Lyxor International Asset Management / Bloomberg.