AM | @Mackfinance
"Profits generated by index providers have risen significantly" — Chris Flood
. Chris Flood: "Profiting from passive aggression", Financial Times, 16 November 2015.
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Showing posts with label Asset Management. Show all posts
Showing posts with label Asset Management. Show all posts
Friday, February 12, 2016
THE ETF REVOLUTION: SOME NUMBERS
AM | @Mackfinance
"The growth is scary" — Anonymous ETF provider
. New record. The ETF market has set a new record for global asset gathering (inflows): some $372bn for 2015. In December alone, ETFs posted net inflows of $55bn, marking the 23rd consecutive month of positive net flows, according to research firm ETFGI. Over the past five years, the inflows reach $1.5tn after growing dissatisfaction with the high fees and widespread underperformance of actively managed traditional mutual funds.
. Total ETF assets. Total assets stand at $2.99tn—a figure consultancy PwC expects to hits $5tn by 2020.
. The Big Three. BlackRock, Vanguard and State Street Global Advisors together control more than two-thirds of the ETF industry's global assets and in 2015 grabbed 55% of the new cash allocated by investors to ETFs, according to ETFGI.
. Others. Some of the notable beneficiaries of investors' growing interest in ETFs include WisdomTree and Deutsche Asset Management, which both saw inflows to ETFs more than triple in 2015 compared to the previous year.
. Minimum size. ETFGI estimates that more than 6,100 ETFs are now available to investors globally, but around 70 per cent of those funds have less than $100m in assets, the minimum level generally regarded as necessary to break even.
. Innovation. Providers have to strive to be different. It is vital to have the right products in an increasingly crowded market place, to build ETFs that meet specific client needs. WisdomTree, the New York based manager, runs a pair of currency hedged European and Japanese equity ETFs that were two of the fastest growing products globally in 2015.
. Japan. Figures released by the Japan Exchange Group in February 2016 put the combined January trading value of all ETFs at record Y7.94tn—a 100% increase on the same period last year and a 53.4% month-on-month rise from December 2015. The increase in ETF traded volume was even more marked, jumping 128% year-on-year. (Note the role of the BoJ).
Sources. ETFGI; PwC: "ETF 2020: Preparing for a new horizon"; Leo Lewis: "ETFs set Japan record", Financial Times, 3 February 2016; Chris Newlands: "Is it time to halt the rise of the ETF machine?" and Chris Flood: "Dominance of big three forces wave of innovation", Financial Times, 1 February 2016.
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"The growth is scary" — Anonymous ETF provider
. New record. The ETF market has set a new record for global asset gathering (inflows): some $372bn for 2015. In December alone, ETFs posted net inflows of $55bn, marking the 23rd consecutive month of positive net flows, according to research firm ETFGI. Over the past five years, the inflows reach $1.5tn after growing dissatisfaction with the high fees and widespread underperformance of actively managed traditional mutual funds.
. Total ETF assets. Total assets stand at $2.99tn—a figure consultancy PwC expects to hits $5tn by 2020.
. The Big Three. BlackRock, Vanguard and State Street Global Advisors together control more than two-thirds of the ETF industry's global assets and in 2015 grabbed 55% of the new cash allocated by investors to ETFs, according to ETFGI.
. Others. Some of the notable beneficiaries of investors' growing interest in ETFs include WisdomTree and Deutsche Asset Management, which both saw inflows to ETFs more than triple in 2015 compared to the previous year.
. Minimum size. ETFGI estimates that more than 6,100 ETFs are now available to investors globally, but around 70 per cent of those funds have less than $100m in assets, the minimum level generally regarded as necessary to break even.
. Innovation. Providers have to strive to be different. It is vital to have the right products in an increasingly crowded market place, to build ETFs that meet specific client needs. WisdomTree, the New York based manager, runs a pair of currency hedged European and Japanese equity ETFs that were two of the fastest growing products globally in 2015.
. Japan. Figures released by the Japan Exchange Group in February 2016 put the combined January trading value of all ETFs at record Y7.94tn—a 100% increase on the same period last year and a 53.4% month-on-month rise from December 2015. The increase in ETF traded volume was even more marked, jumping 128% year-on-year. (Note the role of the BoJ).
Sources. ETFGI; PwC: "ETF 2020: Preparing for a new horizon"; Leo Lewis: "ETFs set Japan record", Financial Times, 3 February 2016; Chris Newlands: "Is it time to halt the rise of the ETF machine?" and Chris Flood: "Dominance of big three forces wave of innovation", Financial Times, 1 February 2016.
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Thursday, February 4, 2016
CLOSET TRACKING
AM | @Mackfinance
This is quite an interesting story, with many different angles to it: asset management styles (passive v. active), legal risk, ethics, etc. More material to be posted soon! The Aberdeen Asset Managament story is particularly noteworthy; close tracking or not, active asset managers find themselves under a lot of pressure.
. Madison Marriage & Attracta Mooney: “EU probe into asset managers uncovers potential mis-selling”, Financial Times, 2 February 2016.
. Madison Marriage: "Watchdogs attempt to force trackers out of closets", Financial Times, 16 November 2016
. David Rockets: "Name closet trackers, European regulator told", Financial Times, 8 February 2016.
. Attracta Mooney: "Aberdeen cuts fees on emerging markets fund", Financial Times, 8 February 2016.
. Lex: "Asset managers: out of the closet", Financial Times, 22 January 2016.
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This is quite an interesting story, with many different angles to it: asset management styles (passive v. active), legal risk, ethics, etc. More material to be posted soon! The Aberdeen Asset Managament story is particularly noteworthy; close tracking or not, active asset managers find themselves under a lot of pressure.
. Madison Marriage & Attracta Mooney: “EU probe into asset managers uncovers potential mis-selling”, Financial Times, 2 February 2016.
. Madison Marriage: "Watchdogs attempt to force trackers out of closets", Financial Times, 16 November 2016
. David Rockets: "Name closet trackers, European regulator told", Financial Times, 8 February 2016.
. Attracta Mooney: "Aberdeen cuts fees on emerging markets fund", Financial Times, 8 February 2016.
. Lex: "Asset managers: out of the closet", Financial Times, 22 January 2016.
Thursday, March 7, 2013
[ASSET MANAGEMENT] THE VALUE OF NBIM'S FUND
This is quite impressive: see. Question: what must be happening in terms of interest rates, when the value of the fund —ceteris paribus— declines?
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