Australian ETF industry breaks new record
The Australian exchange traded funds (ETFs) grew by almost $1.5 billion in October, with funds under management (FUM) reaching new all-time high of $33.5 billion, according to the BetaShares Australian ETF Review – October 2017.
Growth was driven mainly by strong asset value appreciation across different asset classes including both global and domestic equities.
New money amounted to $789 million in additional funds to the Australian ETF market, which represented 52 per cent of the monthly growth.
As far as asset classes were concerned, Australian equities received the largest flows of new money in October.
At the same time, the outflows were limited, with only small redemptions in oil exposures as investors took profits after strong gains from previous months.
BetaShares’ managing director, Alex Vynokur, said: “Australian equities took the lead this month, but there were also strong gains in fixed income, cash and global equities, which shows that investors are using ETFs across a number of asset classes to diversify their portfolios.”
The best performing ETFs in October were focused on Asian Equities, particularly in South Korea and Taiwan, the company said.
AUTHOR
Oksana Patron
Recommended for you
Australian fund managers are actively seeking to launch Cayman versions of their funds to attract offshore flows, with Regal Partners set to launch its latest offering this month.
As private markets gain traction in Australia but only a limited pool of talent is available, three recruiters explore whether fund managers should consider looking overseas to find top talent.
With an explosion of private credit managers appearing in the market, two alternatives experts believe a consolidation is needed to maintain the quality of the sector.
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
