ETFs buck stockmarket trends in ‘watershed year’
Australia's exchange trade fund (ETF) sector recorded a 42 per cent rise in funds under management (FUM), while most other stock markets fell or flatlined, BetaShares reports.
BetaShares managing director, Alex Vynokur, described 2015 as a "watershed year" and forecast that the ETF sector will continue to grow rapidly over the year ahead.
The 2015 annual BetaShares Australian ETF Review, reported that 2015 was a record year of net inflow, trading activity and number of product launches in the sector.
Throughout 2015 FUM increased by $6.4 billion to a high of $21 billion, with 94 per cent of the growth coming from net inflows, while net inflows to retail managed funds was 6.6 per cent.
"Last year was a watershed year for the industry, resulting in the breaking of multiple records," Vynokur said.
"The global ETF industry grew to US$3 trillion in assets under management. In Australia, the industry reached $21 billion in FUM.
"We believe the industry will continue to grow strongly next year, and forecast total industry FUM at end 2016 to be in the range of $28 to $30 billion."
Vynokur noted that property sector funds closed out the year strongly with the Australian ETF market's FUM growing by $388 million in December.
AUTHOR
Nicholas O'Donoghue
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.
