Barclays Global Investors (“BGI”) experienced encouraging growth in its iShares family of ETFs in both Asia ex-Japan and the global market in 2008.
Despite market volatility, assets under management (AUM) for iShares ETFs in the Asia ex-Japan region reached US$4.3 billion as at 31 December 2008, an impressive 43.7% increase in AUM over the previous year . On a global basis, iShares had a record year and realized net inflows of US$89 billion in new ETF assets for 2008, compared to US$70 billion the previous year.
BGI’s ETF Industry Preview Year End 2008 reports that the industry’s average daily trading volume worldwide increased by 32.5% to US$80.4 billion in 2008. The global ETF growth phenomenon is set to continue, with AUM in the ETF sector expected to grow from US$711 billion at end of 2008 to US$1 trillion in 2009 and US$2 trillion in 2011.
“Investors around the world, including those in Asia, are clearly embracing ETFs,” says Nick Good, CEO, iShares Asia-Pacific. “The current volatile market has made investors more concerned with knowing exactly what they own and with investing in products which they can trade easily, whenever they want. iShares ETFs have therefore become a preferred investment vehicle for managing risk.”
“Investors in Asia are increasingly aware of the benefits of ETFs. With transparency and diversification expected to be strong themes in 2009, iShares will continue to provide products to meet investors’ needs in the region. “
L.D.