ETF FUM reaches new high
The Australian exchange traded fund (ETF) market reached a record high of $10.5 billion in funds under management, according to the latest data released by ETF specialist BetaShares.
The company's Australian ETF Review revealed that approximately $200 million of new money flowed into ETF products in March, with inflows coming almost exclusively from new money rather than existing asset growth.
It noted that total industry market capitalisation increased by 2 per cent over the month and that in a reversal of market trends from previous months, a significant number of investors exited Australian equities, with approximately $40 million flowing out of funds offering these exposures — a sign that investors are cautious about the local equities market.
The report said that the two products experiencing the highest inflows for the month were the Australian High Interest Cash ETF and Equity Yield Maximiser fund, indicating investor demand for defensive and high-yielding strategies.
Commenting on the latest data, BeaSharse managing director Alex Vynokur said that although last month's flows indicated that investors were showing some caution in regard to the Australian equities market, due to the variety of strategies available via exchange traded products, investors had been able to continue to express their investment views beyond simple broad-based equities exposures.
AUTHOR
Admin Staff
Recommended for you
Advice firms are increasing their base salaries by as much as $50k to attract talent, particularly seeking advisers with a portable book of clients, but equity offerings remain off the table.
MLC Expand has appointed retirement specialist Andrew Long to work with advisers and licensees and drive growth for its recently launched retirement solution.
Despite banks largely having exited the industry, advisers under institutional licensees are least likely to switch while 26 advisers have been appointed to a licensee more than 10 times.
Insignia Financial has shared a progress update on the acquisition by US private equity firm CC Capital as well as the departure of a long-standing director.
