Global asset flows for fixed income exchange-traded funds (ETFs) and exchange-traded products (ETPs) have hit a new high in January, according to data released by BlackRock.
Both BlackRock and State Street have announced their plans to introduce fixed income ETFs to the Australian market.
But while this product has yet to be introduced to the Australian market, BlackRock Investment Institute’s ETP Landscape report found investments in fixed income ETPs set a new global monthly record, attracting $9 billion in January 2012 – up from the previous monthly record set of $6.7 billion in January 2009.
Managing director of BlackRock-owned ETF provider iShares Australia Mark Oliver said he expected the trading volumes to further increase in 2012, particularly after fixed income ETFs are launched in Australia.
"With fixed income ETFs shortly to be launched in Australia, it will soon be possible to build a portfolio out of ETFs," Oliver said.
He added that over the past decade this product has "helped democratise access to fixed income markets by creating new centres of liquidity, offering investors a cost-efficient way to express a view on specific fixed income sectors".
