By Shigemasa Katayama, Head of Fixed Income, Japan at Nikko Asset Management.
‘ Asia Pacific ’
Amundi has reported that North American equity ETFs listed globally have recorded strong inflows of €21 billion in March, amounting to 41% of total equity ETF flows during the month, and a continuation of the trend seen thus far in 2017. Year to date, global ETFs targeting exposure to North American equities have seen positive flows of €48bn, representing 35% of globally-listed equity ETF inflows.
STOXX, the index business of Deutsche Boerse Group, has licensed the STOXX ASEAN Select Dividend 30 Index to One AM, Thailand’s largest equity ETF issuer, to underlie a new ETF that has launched on Singapore Stock Exchange.
By Yacov Arnopolin, Executive Vice President, Emerging Markets Portfolio Manager, PIMCO.
As 2017 progresses and the priorities of the Trump administration take shape, the outlook for emerging markets (EM) has evolved from uncertain to promising. What has changed so quickly? Several important concerns that weighed on the sector since late last year have subsided, allowing the relatively strong fundamentals in many EM countries to shine and driving an impressive recovery in EM bonds.
Nikko Asset Management has launched the Nikko AM-Straits Trading Asia ex-Japan REIT ETF (SGX: CFA), a new ETF on the Singapore Exchange tracking the performance of Asian real estate investment trusts (REITs).
Global analytics firm Cerulli Associates has reported that an increasing number of Asian asset managers are ramping up their passive capabilities, including providing greater access to strategic beta strategies. The report found this trend is being driven by increasing regulatory scrutiny on fees and the rise of online distribution, including robo-advisory, which is further powering the proliferation of low-cost investing. The findings are supportive of further growth in the region’s ETF industry.
The Shenzhen Stock Exchange and the Luxembourg Stock Exchange have launched a green bond index series, including the first Chinese green bond index to provide synchronous quotes between China and Europe. The new index series will act as a market benchmark for the increasingly mainstream green bond market in China, and may serve to underlie future investment products including exchange-traded funds.
Hong Kong-based E Fund HK has launched the E Fund Yuanta Hang Seng Index Daily (-1x) Inverse ETF (HK: 7302). Launched in conjunction with Yuanta, Asia’s largest inverse ETF issuer, the ETF provides the inverse daily return of the Hang Seng Index, a reference for the 50 largest companies listed on the Hong Kong Stock Exchange.
ETFGI, a London-based ETF industry consultant, has reported that assets invested in smart beta ETFs/ETPs listed globally reached a new record high of $560 billion at the end of February 2017, up from $534bn at the end of the previous month. Record levels of assets were also reached for smart beta equity ETFs/ETPs listed in the US ($499bn), Europe ($39bn), Canada, (13bn) and Asia Pacific ex-Japan ($5bn).
FTSE Russell has launched two new sector-specific indices tracking firms listed on Singapore Exchange. The FTSE ST Consumer Goods & Services Index tracks large, mid and small cap companies operating in the consumer goods or services sectors, while the FTSE ST Consumer Goods & Services Liquid 20 Index goes a step further by applying additional liquidity-screening rules. The indices may serve as the underlying for future investment products, including ETFs.