2017 iShares’ biggest expansion year
BlackRock’s iShares business expanded at its fastest pace on record in 2017, closing the year with $1.754 trillion assets under management [AUM].
BlackRock cited a breakout year for exchange-traded funds (ETFs) as a core driver of its success, with surging interest from investors in ETFs as financial instruments alongside bonds and derivatives.
Australian investors turn to ETFs for their convenience, low cost and range of exposures, said Jon Howie, head of iShares Australia.
“We project the global ETF market to more than double in AUM 2022,” said Mark Wiedman, global head of iShares and index investments at BlackRock.
“Three global trends will power this growth: fee-based wealth management, networked bond and derivatives trading, and alpha-seeking usage by active fund and wealth managers,” he continued.
iShares also pointed to its international performance as a key strength in 2017, saying that they had doubled their number of fixed income clients in Asia Pacific in two years.
“The Korean and Taiwanese markets have made bigger contributions to our business over the course of this year as ETFs are increasingly used for portfolio construction across multiple applications,” said Susan Chan, head of Asia Pacific iShares.
iShares 2017 AUM included $1.33 trillion in equities and $427 billion in fixed income and commodities.
Recommended for you
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
Responsible investment performance concerns have lessened as the market hits $1.6 trillion in AUM, according to RIAA’s annual report, but greenwashing fears among asset managers are on the rise.