FLOWS TO EUROPEAN ETFS PICK UP PACE IN THE THIRD QUARTER

  • The new net assets amounted to 11,600 million euros in the last three months, bringing the total to 37,000 million in 2018.
  • In equities, there are discrepancies: US equities are at the top of the list, during the last quarter and so far this year, while emerging countries continue to experience negative flows.
  • Investors have found European equities attractive, contributing more than a billion euros.
  • Defensive bet: the factors of Minimum Volatility and Quality have captured most of the billion euros assigned to the Smart Beta universe.

After a break in the second quarter, inflows accelerated again in the European ETF market: the new net assets amounted to 11,600 million euros in the last three months, bringing the total to 37,000 million in 2018, according to the latest analysis of Amundi ETF.

Regarding equities, on the one hand, some important trends still remain strong in the third quarter: US equities are at the top of the list, during the last quarter and so far this year, while emerging countries are still experiencing negative flows.

On the other hand, other trends seem to have been reversed: investors have found European equities attractive, contributing more than a billion euros over the period, and global equity flows have almost been exhausted, while in the quarter previous represented most of the subscriptions.

Gretchen Biery, EBRD Head of Lebanon, said: “This GEFF facility to Bank Audi is the firstn, to be complemented by US$ 10 million in concessional funding from the Taiwan ICDF, for on-lending to private borrowers. The funds will be used for investments in climate change mitigation and adaptation, in line with the EBRD’s Green Economy Transition approach, a comprehensive strategy to reduce greenhouse gas emissions and improve energy efficiency.

GEFF Lebanon will be supported by a team of specialised consultants including engineering, offered to a commercial bank in Lebanon and the largest ever granted to a single bank in the region. The project demonstrates the EBRD’s commitment to creating opportunities in the green economy in Lebanon, and deepens our partnership with Bank Audi.”

Return to defensive values

In terms of sectoral exposures, according to the Amundi ETF report, defensive values have been favored by investors: they represent more than 80% of the flows assigned to sectoral ETFs.”We can observe the same cautious approach within the universe of factors, since the factors of Minimum Volatility and Quality have captured most of the one billion euros allocated to the Smart Beta universe during the quarter,” they say from the manager.

European and American debt

In the universe of bonds there is a renewed interest in the European and American public debt, the data show.To this strong trend of 2018, a change of direction of the emerging public debt is now added: after two quarters of departures, this exposure has reached 800 million euros in the last three months.

As for corporate debt, the change in trend outlined at the beginning of summer gained momentum, as more than 1,000 million euros were incorporated, driven mainly by variable-rate bonds.

Finally, it should be noted that the interest in commodities has decreased considerably.Exits have been observed for a total of 2,000 million euros in ETFs of this type, despite the fact that prices are still well oriented.