bulletEDITOR'S PICKS

 

QROPS to receive same flexibility as UK pensions

From Retirement Oct 23 2014 @ 12:33

The Taxation of Pensions Bill, debated in Parliament last week, will ensure additional benefits...
view article

EEA accused of 'deliberately' withholding information

From Products Oct 22 2014 @ 16:57

EEA has been accused of “deliberately” withholding information after an action group discovered...
view article


bulletRELATED ARTICLES

 

bulletNEWS

 

LATEST NEWS

14% sales increase for Axa Wealth Int’l

14% sales increase for Axa Wealth Int’lSales increased by 14% during the third quarter for Axa Wealth International...
view article

Holborn IFA faces ban and £290k fine in UK

From Tax & Regulation Oct 24 2014 @ 11:30

SLI to close ‘economically unviable’ China Fund

From Products Oct 24 2014 @ 11:09

MORE FROM Life

LATEST NEWS

Fund manager profile: Coupland Cardiff's Jonathan Dobson

Fund manager profile: Coupland CardiffOne of the first things you discover upon meeting Yorkshire native and Coupland...
view article

Coral adds to management team following GSA...

From People Oct 23 2014 @ 17:05

Credit Suisse returns from slow half year with...

From Europe Oct 23 2014 @ 16:45

MORE FROM Profiles

LATEST NEWS

QROPS to receive same flexibility as UK pensions

QROPS to receive same flexibility as UK pensionsThe Taxation of Pensions Bill, debated in Parliament last week, will ensure...
view article

HMRC tax demands total £250m

From Tax & Regulation Oct 23 2014 @ 10:57

Manulife Singapore seals deal with RHB Bank...

From Asia Oct 23 2014 @ 10:30

MORE FROM Retirement



The European ETF party has just begun

From Products Apr 29 2013 BY: Claire Wilson , online reporter , Portfolio Adviser

Add to My News Comments (0)

Add to My News Print

Add to My News

add to twitter

add to linkedin


European ETP assets are set to exceed $900bn by 2017 as regulation, wider adoption of wraps and the increasing illiquidity of fixed income products makes them more attractive investment propositions, according to analysis by BlackRock iShares.

Sector assets stood at around $387bn at the start of the year, and are set to more than double over the next five years as the market plays catch up with its US counterpart.

Mark Wiedman, global head of iShares, said: “The growth of the ETP industry has much further to go. Compared to the market size of other investment vehicles in segments such as securities, mutual funds and derivatives, ETPs have huge headroom for growth, even in the more mature markets of Europe and the US. It’s a very exciting time for investors and providers alike.”

Earlier in the month US-based providers First Trust launched their first Europe-focused ETFs, while Pimco launched a sterling version of one of their ETFs back in March.

Growth drivers

RDR has opened the floodgates for ETFs in the UK, as advisers are now looking more broadly at all investment products on the market. Regulation elsewhere is having the same impact especially in Switzerland and the Netherlands.

Institutional investors, in particular pension funds and insurance companies, are also increasing their ETF exposure, and data provided by iShares shows that some of the world’s largest asset managers have increased their ETF holdings by 30% over the past year.

Mark Johnson, head of UK sales, iShares, said: “Many investors are wary of getting back into the markets and have sat on cash which has produced low yields. ETFs are a good way of getting back into the market, offering a less bumpy ride while still giving exposure to a particular view on the market.

“Conversely, those investors that are already invested can use low volatility funds to dampen down their portfolios and to soften the risk/return balance.

The performance of the MSCI Europe Minimum Volatility Fund since inception is shown in the graph below.

Low-Vol.png

Low Volatility

Low volatility funds are proving particularly popular in the global market, attracting more capital than their non-low volatility counterparts year-to-date. The MSCI US Minimum Volatility Fund has seen inflows of around $2.4bn year-to-date, compared with $10m outflows from MSCI USA Index Fund.

The oldest low volatility fund in market, the PowerShares S&P 500 Low Volatility Fund, meanwhile, has also made gains of 15% year-to-date, compared to the 11.5% made by the non-volatility focused version. Its performance over the past year is shown in the graph.

PowerShares.png

Add to My News Comments (0)

Add to My News Print

Add to My News

add to twitter

add to linkedin




TAGS:

COMMENTS


Have your say

(Be the first to) Have your say!

Please sign in or register here to leave a comment. Registration is free and only takes a few moments.






Share us on Twitter

SHARE US ON TWITTER
Join the community

Join us on Linked In

SHARE ON LINKED IN
Inform your colleagues

Switch to our mobile site

SWITCH TO MOBILE SITE
News on the go

Back tot he top of the page

BACK TO TOP OF PAGE
Just click here...