New ETFs Have A Big Year In 2004

Exchange Traded Funds may have only accounted for 17% of all fund launches in 2004, but at year end those funds accounted for 26% of assets under management, FRC has said. No doubt ETFS were helped by the macro launch

By None

Exchange Traded Funds may have only accounted for 17% of all fund launches in 2004, but at year-end those funds accounted for 26% of assets under management, FRC has said.

No doubt ETFS were helped by the macro launch of StreetTRACKS Gold $1.38 billion ETF offering.

In fact, only two product launches had assets in excess of $1 billion, the other coming from an institutional asset manager (GMO US Quality Equity – $1.21B).

Overall, the average fund launched during 2004 ended the year with assets of $73 million. However, that number is inflated by a handful of incredibly large product launches. Broken into percentiles, 10th percentile funds accounted for $161 million, 25th percentile $64 million, 50th percentile $24 million, 75th percentile $5.6 million and 90th percentile $5.6 million.

On the down side, Bank Loan products experienced a bit of a revival during 2004. In total Bank Loan funds captured net sales of $8.9 billion.

«