For the first time in its history, the Australian exchange traded fund industry increased in size by $1 billion in a single month, reaching a new record high of $16.8 billion in funds under management (FUM). Highlights of the BetaShares Australian ETF Review – February 2015 are detailed below:
- ASX Exchange Traded Funds Market Cap: $16.8B – New record high
- Market cap growth for month: +6.6%, +$1,055.4m – Record monthly FuM growth
- Market cap growth for last twelve months: 60.8%, +$6.4B
- New unit growth for month (units outstanding by number): 2.2%
- Net new money (units outstanding by $ value): +$279.9m
Comment: The first two months of this year have surpassed even our bullish growth expectations, with the industry growing by almost $2B. Admittedly, the overall appreciation in the value of Australian and global equities was a key contributor to the growth, with positive market movements contributing to 75% of February’s growth, for example.
- 106 Exchange Traded Products trading on the ASX
- 4 new products launched– UBS IQ MSCI World Ex-Aust. Ethical ETF (UBW), UBS IQ MSCI Europe Ethical ETF (UBE), UBS IQ MSCI USA Ethical ETF (UBU), UBS IQ MSCI Australia ETF (UBA)
Strong product development activity continued this month, with four new products launched in February, bringing the total number of products launched this year so far to seven, compared to a total of 12 new products for the whole of 2014.
- Average trading value increased 4% month on month to $1.5B, 2nd highest on record
- BetaShares Geared Australian Equities Fund (hedge fund) (GEAR) recorded the best investment performance for the month (~15%)
Top Inflows by Category
|Top 5 Category Inflows (by $) – Month|
|International Equities – Developed||$169,764,056|
|Aus. Equities – Broad||$19,443,949|
|Aus. Fixed Income||$18,220,246|
Comments: In terms of product sectors, exposures to global developed market equities received the strongest inflows throughout the month, with a mix of both US and global equities products receiving strong flows.
Top Outflows by Category
|Top Category Outflows (by $) – Month|
|Aus. Equities – Small Cap||($9,007,078)|
|Aus. Equities – Large Cap||($1,656,445)|
Comments: Compared to other months, redemption activity was relatively high, possibly as a result of investors taking profits after a strong run in the markets.