Asia ETFs enjoy record-breaking $11b asset growth

The region's exchange traded funds and products enjoyed record-breaking net new asset growth in the first six months of 2016, due to strong performance in emerging Asian markets.
Asia ETFs enjoy record-breaking $11b asset growth

Exchange traded funds and products listed in Asia Pacific ex-Japan enjoyed a record-breaking $11.06 billion in net new assets in the first six months of 2016, and gathered $3.05 billion alone in June, according to ETFGI’s latest industry data, published on Monday.

Chinese asset managers CSOP and Yuanta are among the biggest gainers of assets so far this year, with equity ETFs gathering the largest net inflows.

ETFGI’s managing director Deborah Fuhr said the record June numbers were due to the outperformance of emerging Asia, especially when compared to the flat performance of US indices and the negative growth of European bourses.

“Markets and investors around the world were engulfed in the chaos following what many saw as the unexpected result of the UK’s June 23rd vote [to leave the European Union],” said Fuhr. “Volatility was up significantly during the month. The S&P 500 index was up just 0.3%. Emerging markets were up 3.94% while developed markets ex-US declined 2.87%.”

In June, ETFs listed in Asia Pacific ex-Japan saw net inflows of $3.05 billion. Equity ETFs gathered the largest net inflows with $1.13 billion, followed by fixed income with $866 million, and commodity ETFs with $19 million. This ensured a record $11.06 billion of net inflows for the ETF market in Asia Pacific ex-Japan between January and June this year.

Equity ETFs and ETPs have gathered the largest net inflows so far this year, receiving $4.75 billion. These were followed by fixed income ETFs/ETPs with a record level of $2.62 billion in net inflows, while  commodity ETFs/ETPs gained $638 million in net inflows.

At the end of June 2016, the Asia Pacific ex-Japan ETF/ETP industry had 873 ETFs/ETPs. These vehicles had 1,023 listings and possessed assets of $123 billion, from 116 providers listed on 18 exchanges in 14 countries.

Yuanta gathered the largest net ETF/ETP inflows in June with US$776 million. KB AM followed with $476 million, and SPDR ETFs were in third place, with $417 million net inflows.

Year to date, CSOP/China Southern has enjoyed the largest net ETF/ETP inflows, receiving $2.47 billion in total. Yuanta followed it with $1.44 billion, and SPDR ETFs with $1.08 billion in net inflows.

Globally listed ETFs/ETPs also enjoyed record levels of net assets in the six months to the end of June, receiving $3.177 trillion. Products in the US gained $2.26 trillion, Japan-based ETFs/ETPs received $147.67 billion, and those in Canada got $79.42 billion.

Japan's ETF market remains the largest in the region and in June, ETFs listed in Japan gathered net inflows of $4.9 billion.  Equity ETFs gathered the largest net inflows with $3.56 billion, followed by fixed income ($14 million), while commodity ETFs experienced net outflows of $25 million.

Nomura Asset Management gathered the largest net ETF inflows in June, with $2.14 billion, followed by Daiwa with $1.09 billion and Nikko AM with $1.04 billion net inflows.

Year to date, Nomura AM has gathered the largest net inflows, with $7.47 billion, followed by Nikko with $3.43 billion and Daiwa with $2.69 billion net inflows.

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