Credit Suisse announced yesterday that its exchange-traded funds (ETF) business has increased its assets under management by 45 per cent since the beginning of 2010, to a total of approximately $14.5bn. The global ETF industry currently manages approximately $1.2 trillion in assets, but according to Dan Draper, global head of ETFs at Credit Suisse, “the ETF industry remains in an early growth phase”. Credit Suisse is expecting further growth in Europe and also in Asia, where it plans to expand its ETF platform next year.
NEW SOURCE FIXED INCOME ETFS
Pimco, a global investment manager, has entered into an agreement with Source to provide fixed income ETFs to the European market. Pimco and Source plan to offer UCITS-structured “smarter” ETFs targeted at investors wanting to use both short maturity strategies and more long term strategies. According to Source’s CEO Ted Hood: “Pimco, as one of the world’s leading fixed income managers, is well positioned to provide an enhanced approach to both active and passive exposure.” Investors can expect the first products to be launched in early 2011.
INVESTORS WANT EMERGING MARKETS
Demand for exposure to emerging markets was the driving investment trend of 2010, according to iShares, the world’s largest ETF provider. The company announced this week that its JPMorgan emerging market bond fund has surpassed $1bn in assets thanks to over $700m in inflows in the year to date. The fund tracks a diverse range of US dollar denominated emerging market debt, giving exposure to over 30 countries. The iShares MSCI emerging markets fund has also raised $1.7bn in the year to date, the most new net assets of any iShares product.