Globally, ETPs are preparing to sign a record year, also thanks to the flows of 233 billion dollars in August, an all-time record for the summer month. Investors increased their exposure to emerging market and Asian equities in search of relative value, but did not abandon the safe haven of fixed income at a time of geopolitical uncertainty. This is what we read in a BlackRock report dedicated to the ETP market in August.
Emerging markets equities recorded a fifth consecutive month of positive flows of $4,7 billion, with the majority biasing towards funds that allow broader exposure to emerging markets and China. In addition, developed Asia contributed an additional $3,4 billion, led by Japan.
Concern about growth in Europe and the lack of a decisive reaction from the ECB drove pan-European equity outflows, amounting to 2,8 billion dollars, mainly with reference to US-listed funds.
Despite redemptions of $13,5 billion in the first week of the month, US large-cap equity ETPs lost $0.1 billion for the month, the recovery following the S&P 500 hitting new highs reached new highs maximum.
Positive flows of 11,5 billion dollars for fixed income with renewed interest also for high yield, although most of the funding was concentrated on funds in the long duration government and corporate investment grade segments.
“We saw the best month of August for ETP growth, and in 2014 the industry is on track to break all historical collection records. At a global level, investors have focused on fixed income and emerging market equities, trends also recorded at a European level – commented Ursula Marchioni, Head of ETP research for the EMEA area at iShares -. European-listed bond ETPs have been a crucial element in funding, with invested assets recently exceeding $100bn. The European ETP industry's assets are now worth $470 billion, and given that we've already seen nearly $50 billion in inflows since the start of the year, we could be well on our way to surpassing the $500 billion milestone. dollars of invested assets by December”.
