Aussie ETFs attract $2.4b net flows in October
Australian exchange traded fund (ETF) sector saw net flows of $2.4 billion in October despite the Australian sharemarket remaining relatively flat, according to BetaShares’ Australian ETF Review.
The net flows into the ETF sector also helped to offset value declines as October saw the Australian sharemarket take a breather but ETF investors continued to allocate to domestic equities.
This led to the industry ending the month at a fresh record high of $126.9 billion, which represented a growth of $1.7 billion for the month, the data showed.
Although monthly trading value decreased by 12% after a very significant spike in trading in September – it remained high (over $8 billion) relative to averages and product development activity remaining strong.
The month saw four new funds launches, including a new active ETF by global equities manager Loomis Sayles, and the best performance came from hydrogen exposures, followed by geared US equities products (GGUS +15.0%) as the US market reached record levels.
“Just like last month, we saw continued high levels of flows into both Australian and International equities, although once again international equities dominated ($621 million and $904 million respectively),” the study said.
“For the second month in a row, we saw high levels of flows into cash ETFs and fixed income ETFs ($345 million and $304 million respectively) with the AAA Cash ETF receiving the highest amount of flows in the industry this month.
Recommended for you
Platinum Asset Management has put its two closed-end funds under strategic review in a bid to reduce the share price discount to pre-tax NTA and maximise shareholder value.
In the latest Meet the Manager profile, Money Management speaks with Michael Skinner, founder and managing director at Blackwattle Investment Partners.
Perpetual has seen AUM rise 6 per cent in the last quarter but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.
Global fixed income fund Bentham Global Opportunities has been added to several major platforms, enabling it to be accessed more easily by financial advisers.