Australia’s ETF industry FUM approaches $50bn
Australia’s exchange traded fund (ETF) industry saw funds under management approach close to $50 billion in May, fuelled by net inflows, according to the latest monthly BetaShares Australian ETF Review.
The study found the industry received close to $1 billion in net new money during the month which saw the industry reach a new all-time record in terms of trading value, with more than $4 billion of value traded over the month for the first time.
As far as the asset classes were concerned, investors favoured Australian equities and fixed income, with both categories having received around $250 million of net flows, and were followed by international equities which received over $211 million in inflows.
At the same time, escalating US/China trade war tensions caused US equities to fall, and as a result, slow the rise of the Australian ETF industry while gold exposures also saw net outflows of $25 million as investors took profits following strong performance in previous months.
“Fixed income ETFs have received significantly more attention this year than ever before as investors continue to exhibit caution on the equities market. Year to date, fixed income is the number one category for flows in the industry, marginally beating out the ever-popular international equities category,” BetaShares’ chief executive, Alex Vynokur, said.
“Investors are increasingly realising the benefits of ETFs in obtaining targeted exposure to this asset class, with the breadth of the fixed income ETF products range now allowing investors to build bond portfolios which are tailored to their specific needs.”
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.
