ETP Landscape Industry Summary

Transcription

1 ETP Landscape Industry Summary Q The opinions expressed are as of March 31st, 2012 and may change as subsequent conditions vary. FOR PROFESSIONAL INVESTORS.

2 Global ETP quarterly overview Q flow highlights (US$): The Exchange Traded Products (ETP) industry recorded its best ever start to a year, attracting net new assets of $67.3bn, a 57% increase over Q s $42.8bn. Q had previously been the best annual start on record. Q inflows outpaced Q s $44.8bn by 50%. The last time Q1 out-collected Q4 was in Q1 flows have historically been low in the wake of cyclically high flows in Q4, but 2012 broke from normal cyclical trends. Global ETP Flows (US$bn) Q1-12 Q4-11 Q1-11 Q1-10 Global ETP Total NNA Fixed Income NNA Emerging Markets Equity NNA (4.9) 1.8 Fixed income ETPs scaled to a new high with record quarterly inflows of $19.5bn, topping the previous record of $14.7bn set in Q This category accounted for 29% of all Q1 flows into ETPs. Emerging markets equity products topped all previous first quarters with record Q1 inflows of $13.7bn. These results easily beat the previous record of just over $5bn in Q and trounced 2011 s Q1 results when the category experienced outflows of ($4.9bn). The best quarterly result for the category was $18.5bn in Q Investors added $22.7bn of North America equity exposure to their ETP portfolios in Q1 2012, largely on trend with Q inflows of $18.7bn and Q inflows of $21.4bn. Europe equity ETPs saw ($0.6bn) redeemed in Q1 2012, building on a trend of ($0.9bn) outflows in Q This stands in contrast to Q1-Q when the category pulled in an average of $5.3bn per quarter. US$bn North America equity Q versus Q Global ETP NNA Europe equity Q NNA: US$67.3bn Other Developed Equity Q NNA Emerging markets equity Fixed income Q NNA Commodities Others ETP = Exchange traded products. NNA = Net New Assets. AUM = Assets Under Management. Global ETP NNA (or flows) are approximated by combining the United States, Europe, Canada, Asia Pacific and Latin America. In 2011, global flows are re-stated with Asia Pacific flows. From January 2012, Asia Pacific flows will be reported on an one-month lag basis. Note: Data as at end of March 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX), Strategic Insight Simfund, Wind FOR PROFESSIONAL INVESTORS. 1

3 Global ETP monthly overview Global results at a glance: As at March 2012 (US$bn) Mar-12 Feb-12* Dec-11 Mar-11 Month-end AUM 1,728 1,720 1,525 1,565 Monthly NNA # of ETPs 4,450 4,405 4,221 3,724 March 2012 monthly flow highlights (US$bn) March 2012 net inflows of $14.7bn moderated from February and slowed considerably from January s exceptional haul of $34.1bn. Fixed income ETPs took in a net $5.8bn in March. Investment grade and high yield corporate bond ETPs pulled in $3.6bn for the month and $16.5bn in the first quarter, accounting for 85% of all fixed income inflows in Q Despite low yields, government bond products absorbed inflows of $0.8bn in March, reducing the overall outflows to ($1.5bn) for the quarter. Emerging markets equity products lost momentum, surrendering ($1.0bn) in March. This in stark contrast to the prior two month period when $14.6bn poured into the category. Broad EM exposure managed $1.3bn of inflows on the month while single country exposures saw redemptions of ($2.4bn) with Taiwan, China, Brazil, Mexico and South Korea all contributing to outflows. Russia stood out with inflows of $0.3bn. Monthly Global NNA (US$bn) Alternative products came in strong again in March with $1.7bn on the month and $4.2bn for the quarter driven by the success of volatility ETPs tied to the VIX index. Mar Feb new ETPs were launched (whereas 90 were delisted) over the last 12 months bringing the total number of ETPs to 4,450, a 19% increase over 3,724 products as of March 31, Jan Mar-12 Feb-12 Jan-12 Dec-11 Nov-11 Oct-11 Sep-11 Aug-11 Jul-11 Jun-11 May-11 Apr-11 (0.1) (10) Equity Fixed income Commodities and other ETP = Exchange traded products. NNA = Net New Assets. AUM = Assets Under Management. Global ETP NNA (or flows) are approximated by combining the United States, Europe, Canada, Asia Pacific and Latin America. In 2011, global flows are re-stated with Asia Pacific flows. From January 2012, Asia Pacific flows will be reported on an one-month lag basis. Note: Data as at end of March 2012 or the most recent period available. * February global NNA and # of products have been re-stated (increased by $0.2bn and 10 products) from our prior report. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX), Strategic Insight Simfund, Wind FOR PROFESSIONAL INVESTORS. 2

4 Top 10 ETPs launched in Q ranked by AUM Commentary (US$) ETPs as at end of Mar 2012 (US$mn) Bloomberg Ticker Exposure Launch Date Q1-12 AUM Listing Region 229 ETPs were launched this year with AUM of $3.7bn at end of March This compares to 202 ETPs launched in Q with AUM of $11.5bn at end of March Among the top 10 new products ranked by AUM, five are listed in Europe, three in Asia Pacific and two in the US Thematically, the top ten newly launched ETPs span a number of asset classes with the largest concentration in fixed income (six products) and emerging markets equity (two products), and one product each in US equity and alternatives. ishares Barclays U.S. Treasury Bond Fund GOVT US Fixed income Feb US PIMCO Total Return Exchange-Traded Fund TRXT US Fixed income Feb US J.P. Morgan Macro Hedge US TR Source ETF MHUU LN Alternatives Feb Europe Kyobo AXA Power K200 ETF KS EM equity Feb Asia Pacific Hanwha Arirang 200 ETF (Equity) KS EM equity Jan Asia Pacific UBS-ETF Markit iboxx EUR Germany A UEFP GY Fixed income Jan Europe Samsung KODEX KRW Cash ETF KS Fixed income Feb Asia Pacific UBS-ETF Markit iboxx EUR Germany A UEFL GY Fixed income Jan Europe SPDR S&P 400 US Mid Cap ETF SPY4 GY US Equity Jan Europe PIMCO Short-Term High Yield Corp Bond Source ETF STHY LN Fixed Income Mar Europe 219 additional ETPs Q All Total ETPs 3,714 ETP = Exchange traded products. AUM = Assets Under Management. Data as at end of March Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX). FOR PROFESSIONAL INVESTORS. 3

5 Top 10 ETPs launched in Q ranked by Q AUM Commentary (US$) ETPs as at end of Mar 2012 (US$mn) Bloomberg Ticker Exposure Launch Date Q1-12 AUM Listing Region There were 202 ETPs launched in the first quarter of last year. After a year of asset gathering, these products closed out Q with AUM of $11.5 bn. As is typical for the industry, assets are concentrated. The top 10 on this list hold 49% of AUM for the population. This equates to an average fund asset value of $563mn for top performers vs. an average of $31mn for the remaining 192 ETPs. Products offering higher yield and dividend income have been particularly successful. These products compose 5 of the top 10 (high dividend, REIT, and leveraged loan exposures). Among the top 10 new products, seven are listed in US, two in Canada and one in Europe. ishares High Dividend Equity Fund HDV US High dividend equity Mar-11 1,360 US BMO Covered Call Canadian Banks ETF Vanguard Total International Stock Index Fund ETF MAN GLG Europe Plus Source ETF ZWB CN VXUS US MPFE GY Canadian bank equity International (ex- US) equity Active Europe equity Feb Canada Jan US Jan Europe ishares MSCI China Index Fund MCHI US China equity Mar US WisdomTree Asia Local Debt Fund ALD US Asia fixed income Mar US PowerShares Senior Loan Portfolio BKLN US Leveraged Loan Mar US SPDR S&P Emerging Markets Dividend ETF EDIV US EM high dividend equity Feb US Schwab U.S. REIT ETF SCHH US Real estate Jan US Horizons AlphaPro Enhanced Income Equity ETF HEX CN High dividend equity Mar Canada 192 additional ETPs launched globally Q1-11 5,897 All Total ETPs 11,528 ETP = Exchange traded products. AUM = Assets Under Management. Data as at end of March Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX). FOR PROFESSIONAL INVESTORS. 4

6 Global ETP assets by type of exposure Mar 2012 flow highlights (US$bn): Global ETPs delivered total AUM growth of $203bn in Q driven by $67.3bn of inflows and $135.7bn of favorable market and exchange rate movements. North America equity was the top asset gathering category for the quarter with $22.7bn or 34% of total net new assets Fixed income attracted $19.5bn in the first quarter, accounting for 29% of total ETP inflows. Europe equity ETPs saw ($0.6bn) redeemed in Q1 2012, building on a trend of ($0.9bn) outflows in Q Exposure as at end of Mar 2012 (US$bn) AUM % Market Share Mar-12 Monthly NNA 2012 Q1 NNA 2012 YTD Change Equity 1, North America equity Emerging markets equity (1.0) Europe equity (0.8) (0.6) Asia Pacific equity (0.1) Global (ex-us) equity (0.01) Global equity Fixed income Commodities Alternative AUM % AUM Currency (0.6) (1.7) (2) (19.6) Mixed (0.04) (0.04) ETPs listed in Israel Total 1, AUM % Market Share as at end of Mar 2012 Developed Equity Equity 57.3% 57.3% Emerging markets equity 13.4% Emerging markets equity 13.4% Fixed Income 16.3% Fixed Income 16.3% Commodities 11.2% Commodities 11.2% Others 1.8% Others 1.8% ETP = Exchange traded products. NNA = Net New Assets. AUM = Assets Under Management. Global ETP NNA (or flows) are approximated by combining the United States, Europe, Canada, Asia Pacific and Latin America. In 2011, global flows are re-stated with Asia Pacific flows. From January 2012, Asia Pacific flows will be reported on an one-month lag basis. Note: Data as at end of March 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX), Strategic Insight Simfund, Wind, Bank of Israel FOR PROFESSIONAL INVESTORS. 5

7 Top 10 ETPs worldwide ranked by YTD Net New Assets (NNA) Commentary Two of the top five asset gathering ETPs offer exposure to emerging markets equity. Vanguard and ishares have the highest number of top asset gathering ETPs with three funds from each provider in the top ten. Thematically, the top ten asset gathering ETPs span a number of asset classes including emerging markets equity, US real estate and dividend equity, US large-cap equity, corporate bonds, high yield bonds, volatility products and gold. All of the top ten are US-listed products. ETPs as at End of Mar 2012 (US$mn) Bloomberg Ticker Q1-12 NNA Mar-12 AUM Vanguard MSCI Emerging Markets ETF VWO US 6,444 54,326 PowerShares QQQ Trust QQQ US 4,224 35,677 ishares iboxx $ High Yield Corporate Bond Fund HYG US 3,486 14,579 SPDR Barclays Capital High Yield Bond ETF JNK US 2,826 12,013 ishares MSCI Emerging Markets Index Fund EEM US 2,694 39,597 ishares iboxx $ Investment Grade Corporate Bond LQD US 2,399 19,854 ipath S&P 500 VIX Short-Term Futures ETN VXX US 2,004 1,811 SPDR Gold Trust GLD US 1,852 69,015 Vanguard Dividend Appreciation ETF VIG US 1,297 10,913 Vanguard REIT ETF VNQ US 1,238 11,452 ETP = Exchange traded products. NNA = Net New Assets. AUM = Assets Under Management. Note: Data as at end of March 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX), Strategic Insight Simfund FOR PROFESSIONAL INVESTORS. 6

8 Top 10 ETPs worldwide ranked by AUM Commentary State Street has the top two global products ranked by AUM. ishares has the largest number of top products with five of the top ten. Vanguard and State Street each have two. Thematically, the top ten AUM ETPs span a number of asset classes with the largest concentration in United States broad equity (four products), emerging markets equity (two products), fixed income (two products) and one product each in gold and EAFE equity. All of the top ten are US-listed products. ETPs as at End of Mar 2012 (US$mn) Bloomberg Ticker AUM Q1-12 NNA 1-month ADV SPDR S&P 500 SPY US 105,640 (942) 17,700 SPDR Gold Trust GLD US 69,015 1,852 1,848 Vanguard MSCI Emerging Markets ETF VWO US 54,326 6, ishares MSCI Emerging Markets Index Fund EEM US 39,597 2,694 1,941 ishares MSCI EAFE Index Fund EFA US 38,105 (2,429) 895 PowerShares QQQ Trust QQQ US 35,677 4,224 2,885 ishares S&P 500 Index Fund IVV US 29, ishares Barclays TIPS Bond Fund TIP US 22,283 (131) 120 Vanguard Total Stock Market ETF VTI US 21,470 (429) 114 ishares iboxx $ Investment Grade Corporate Bond LQD US 19,854 2, ETP = Exchange traded products. NNA = Net New Assets. AUM = Assets Under Management. Note: Data as at end of March 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX), Strategic Insight Simfund FOR PROFESSIONAL INVESTORS. 7

9 Global ETP multi-year asset growth The 10-year CAGR for ETP AUM is 31.0%. Assets US$bn 1,800 # products 3,500 1,600 3,000 1,400 1,200 1,000 2,500 2, ,500 1, Assets (US$bn) Mar-12 ETF total , , , ,536.7 ETF equity , , ,214.6 ETF fixed income ETF commodity Other ETPs total # ETFs ,170 1,595 1,944 2,460 3,011 3,169 # Other ETPs ,083 1,210 1,281 0 Note: CAGR = Compound Annual Growth Rate. AUM = Assets Under Management. Data as at end of March 2012 or where updated data is not available, we utilise the most recent period available. Source: BlackRock Investment Institute, Bloomberg, Bank of Israel. FOR PROFESSIONAL INVESTORS. 8

10 About us About the ETP Landscape: Industry Summary report For inquiries, contact The ETP Landscape: Industry Summary report provides a snapshot of ETP assets under management and asset flows at a combined global level as of the most recent month-end period. The ETP (or exchange traded product) category encompasses any portfolio exposure security that trades intra-day on an exchange. The data for this report are captured from a number of sources by the BlackRock Investment Institute including provider websites, fund prospectuses, provider press releases, provider surveys, Bloomberg, the National Stock Exchange, Strategic Insight Simfund, Wind and the Bank of Israel. All amounts are reported in US dollars. Net new asset (NNA) flows are derived using daily net asset values and shares outstanding using the most recent data we can capture at month-end. For products with cross-listings, we attribute NNAs and assets under management (AUM) to the primary listings. For Middle East and Africa, NNA data is not available. AUM are derived using shares outstanding and prices at the end of each month (or the closest date available). Where price is not available, we use an approximation. For ETPs listed in Israel, product level detail is not available. Product level information is aggregated by provider, asset class, exposure, region listed and replication method to produce the various analyses in the report. Subscribe To receive the ETP Landscape series of reports at no cost, please subscribe via our website at About BlackRock BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At December 31, 2011, BlackRock s AUM was $3.513 trillion. BlackRock offers products that span the risk spectrum to meet clients needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including separate accounts, mutual funds, ishares (exchangetraded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions. Headquartered in New York City, as of December 31, 2011, the firm has approximately 10,100 employees in 27 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at About the BlackRock Investment Institute The BlackRock Investment Institute is a global platform that leverages BlackRock s expertise in markets, asset classes and client segments to generate investment insights that seek to enhance the firm s ability to create a better financial future for clients. Launched in 2011, the Institute hosts a series of events through the BlackRock Investment Forum that foster debate around key investment themes. The Institute s goal is to produce a flow of information that makes BlackRock s portfolio managers better investors and helps deliver positive investment results for our clients. BlackRock s highly regarded ETP research is an reputable source of objective, trusted data and analysis for our clients, the firm, and the ETP industry as a whole. FOR PROFESSIONAL INVESTORS. 9

11 Disclaimer Regulatory information BlackRock Advisors (UK) Limited ( BlackRock ), which is authorised and regulated by the Financial Services Authority in the UK, has issued this survey for access by professional investors (or professional clients, as such term may apply in relevant jurisdictions) only. Circulation must be restricted accordingly. This survey is provided for information purposes only and does not constitute an offer or solicitation to sell shares in any of the funds referred to, by anyone in any jurisdiction in which such offer, solicitation or distribution would be unlawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation. This material is published in good faith but no representation or warranty, express or implied, is made by BlackRock or by any person as to its accuracy or completeness and it should not be relied on as such. BlackRock shall have no liability for any loss or damage arising out of the use or reliance on the material provided including without limitation, any loss of profit or any other damage, direct or consequential. This material does not constitute investment, tax, legal or any other advice. Information and opinions contained in this material are derived from proprietary and non-proprietary sources and may been acted on by BlackRock for its own purposes. The views expressed do not necessarily reflect the views of BlackRock as a whole or any part thereof and are subject to change at any time and without notice. There is no guarantee that any forecasts made will come to pass. Affiliated companies of BlackRock may make markets in the securities of ETFs and provide ETFs in the form of ishares. Further, BlackRock and/or its affiliated companies and/or their employees may from time to time hold shares or holdings in the underlying shares of, or options on, any security of ETFs and may as principal or agent buy securities in ETFs. BlackRock has not performed any due diligence on products which are not managed by BlackRock and accordingly does not make any remark on their suitability for investment purposes. This material or any portion hereof may not be reprinted, sold or redistributed without prior permission from BlackRock. This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to professional/institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Albania, Andorra, Angola, Bangladesh, Barbados, Benin, Bermuda, Botswana, Brunei, Bulgaria, Canada, China, Croatia, Cyprus, Czech Republic, Estonia, Ghana, Gibraltar, Greece, Guam, Hungary, Indonesia, Isle of Man, Japan, Jordan, Kazakhstan, Kenya, Kosovo, Korea, Kuwait, Latvia, Liechtenstein, Lithuania, Macedonia, Malaysia, Malta, Mauritius, Milan, Monaco, Mongolia, Mozambique, Nigeria, Pakistan, Poland, Romania, Russia, Serbia, Seychelles, Sierra Leone, Slovakia, Slovenia, South Africa, Taiwan, Turkey, Ukraine and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in the countries listed above. Notice to residents in Australia: Issued in Australia by BlackRock Investment Management (Australia) Limited ABN , AFSL ("BIMAL") to institutional investors only. ishares exchange traded funds ( ETFs ) that are made available in Australia are issued by BIMAL, ishares, Inc. ARBN and ishares Trust ARBN BlackRock Asset Management Australia Limited ("BAMAL") ABN , AFSL is the local agent and intermediary for ishares ETFs that are issued by ishares, Inc. and ishares Trust. BIMAL and BAMAL are wholly-owned subsidiaries of BlackRock, Inc. (collectively BlackRock ). A Product Disclosure Statement ( PDS ) or prospectus for each ishares ETF that is offered in Australia is available at ishares.com.au. You should read the PDS or prospectus and consider whether an ishares ETF is appropriate for you before deciding to invest. ishares securities trade on ASX at market price (not, net asset value ("NAV")). ishares securities may only be redeemed directly by persons called Authorised Participants. This information is general in nature, and has been prepared without taking into account any individual's objectives, financial situation, or needs. You should seek independent professional legal, financial, taxation, and/or other professional advice before making an investment decision regarding the ishares funds. For investors in Austria: This document is directed at Professional Investors only as defined by the Austrian Investment Fund Act or the Austrian Capital Markets Act. FOR PROFESSIONAL INVESTORS. 10

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15 Disclaimer (continued) For investors in the UAE: BlackRock Advisors (UK) Limited is regulated by the Dubai Financial Services Authority in the DIFC and authorised and regulated by the Financial Services Authority in the UK, has issued this document for access by Professional Clients and no other person should rely upon them information contained within it. The financial services to which the document relates are only available to Professional Clients. For investors in the United Kingdom: This document is directed at Professional Clients only within the meaning of the rules of the FSA. For investors in the United States: Information on funds and securities is provided by BlackRock and is strictly for informational purposes. It should not be deemed an offer to sell or a solicitation of an offer to buy shares of any securities, including the ishares Products, that are included in this report. Notice to residents in Vietnam: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Vietnam, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Vietnam. BlackRock is a trademark of the BlackRock Group registered, amongst others, in the United States, the European Union and other jurisdictions around the world. The trademarks and service marks contained herein are the property of their respective owners. Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of any kind relating to such data BlackRock Advisors (UK) Limited. Registered Company No All rights reserved. Calls may be monitored or recorded. BLK FOR PROFESSIONAL INVESTORS. 14