European-domiciled ETFs saw $11.1bn in net inflows in March, according to Blackrock. That’s an all-time record for the month. ETF investors in other parts of the world also joined the party in great numbers.
The country with the highest level of retrocessions in Europe also was the most lucrative market for active managers in 2016. Little wonder some asset managers believe Mifid II will negatively impact fund sales.
US inflation-linked bond ETFs saw record inflows in February, according to Lipper data. European investors are taking advantage of break-even inflation rates that are lower than they probably should be.
European small and midcap ETFs saw higher net inflows in February than their large cap equivalents, according to Blackrock data. Investors’ love for small caps coincides with an increasing appetite for cyclical assets.
2016’s record inflows into ETFs contrasted sharply with another year of net outflows from the hedge fund industry, according to new data from ETFGI, an independent research and consultancy firm.
Investors kept faith in US equities in January, despite the Trump rally losing steam, according to Morningstar ETF flows data.
The largest ETF available to European investors has passed the $20bn mark in assets under administration. It benefited from an increase in inflows following Donald Trump’s election to the US presidency.
European investors have turned positive on emerging market debt again in January after two months of net outflows, reports Blackrock.
Value stocks were the stellar performers in all equity markets in 2016. The three factors that had shown most outperformance in recent years, however, disappointed investors last year.
Passive ESG strategies tend to focus exclusively on large caps. This is a problem because they miss out on ESG opportunities in small cap companies that can only be exploited by active managers, according to Ryan Smith, head of ESG research at Kames Capital. Does he have a point?
Companies listed in the Eurozone score best on Environmental, Social and Governance criteria, according to Morningstar research, with Portugal getting the highest score. On the other end of the scale, two of the BRICS countries get the lowest marks.
The growing popularity of index investing is only just starting to be felt in the world of responsible investing but as the market for plain vanilla trackers becomes increasingly crowded, what does the future hold for ESG passive products?
