Asia's ETF assets rise in first half

Added 13th July 2015

The assets under management of exchange traded funds and products listed in Asia-Pacific ex-Japan rose by 4.3% to $123bn during the first half of the year, according to ETFGI.

Asia's ETF assets rise in first half

During the same period (to 30 June), the products had net outflows of $11.5bn.

“Market performance in the first half of 2015 was impacted by a number of uncertainties: the situation in Greece and the impact on the Eurozone, when the Fed will raise interest rates, volatility in the Chinese market and the MERS [Middle East Respiratory Syndrome] outbreak in South Korea,” said Deborah Fuhr, managing partner.

Equity ETFs/ETPs experienced the largest net outflows amounting to $12bn, while fixed income and commodity ETFs/ETPs gathered net inflows of $617m and $189m, respectively.

While ETF usage is lagging among wealthy clients in Asia currently, it is not likely to remain the same over the next five years, said Roger Bacon, Asia-Pacific head of managed investments at Citi Private Bank.

A recent Cerulli study also predicted ETFs will become core holdings among distributors in the region and they are likely to have two fund lists, one for passive and one for active products.

In terms of monthly performance, ETFs/ETPs listed in Asia-Pacific ex-Japan attracted net inflows of $1.6bn in June. Equity ETFs/ETPs gathered the largest net inflows of $944m while fixed income and commodity products respectively garnered $272m and $122m.

In June, the fund houses with the largest net inflows were Taiwan's Yuanta Securities Investment Trust ($3.3bn), followed by China Asset Management ($1.8bn) and Hua An FM ($651m).


There were 682 ETFs/ETPs from 113 providers in the region on 30 June:


Source: ETFGI


The AUM of ETFs globally are forecast to double from $2.6trn in 2014 to $5trn by 2020, with Asia offering fragmented opportunities, PwC predicted. 


Japan overview

Assets invested in ETFs and ETPs listed in Japan reached a new record of $120bn at the end of June and also attracted record level of net new assets at $18bn.

Equity ETFs/ETPs gathered the largest net inflows ($16.6bn) for the year to 30 June followed by commodity vehicles with $355m.

During the review period, Nomura AM gathered the largest net inflows of $7.2bn, followed by Nikko AM with $4.3bn and Mitsubishi UFJ with $2bn net inflows.

In terms of performance for June, ETFs/ETPs listed in Japan received net inflows of $3.4bn. Equity ETFs/ETPs gathered a majority of net inflows with $3.3bn, while commodity ETFs/ETPs experienced net outflows with $142m.

Nomura AM gathered the largest net inflows ($1.7bn) in June followed by Nikko AM ($865m) and Daiwa ($479m).

At the end of June, the Japanese ETF/ETP industry had 157 products from 20 providers:


 Source: ETFGI

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