ETFGI Press Release October 2014: Japan

ETFGI Press Release October 2014: Japan

ETFGI’s research finds ETFs/ETPs listed in Japan gathered 767 million US dollars in net new assets in October 2014 and a record level of 15.7 billion US dollars in YTD NNA

LONDON — November 10, 2014 — ETFGI’s research finds ETFs/ETPs listed in Japan saw net inflows of US$767 Mn in October 2014 and a record level of US$15.7 Bn of year-to-date net new assets (NNA), just surpassing the prior record of US15.6 Bn gathered in the first 10 months of 2013. At the end of October 2014 the Japanese ETF/ETP industry had 140 ETFs/ETPs, with 182 listings, assets of US$89 Bn, from 18 providers listed on 2 exchanges, according to preliminary data from ETFGI’s end October 2014 Global ETF and ETP industry insights report.

Year-to-date net new asset (NNA) flows reached record levels for the ETF/ETP industries in Japan with US$15.7 Bn, Europe with US$56.2 Bn, and globally with US$233.4 Bn. Assets invested in the US-listed ETF/ETP industry hit a new record high of US$ 1.92 Tn.

“October was a challenging month with increasing macroeconomic concerns over deflation fears in Europe, the ECB’s stimulus program, Germany cutting GDP forecasts due to “geopolitical crisis”, dismal employment figures in France, 25 of around 130 European banks having reported to have failed the ECB’s “stress test”, and questions over the U.K.’s continued membership in the European Common Market. At the end of the month the markets reacted positively to the Bank of Japan’s announcement of new annual purchasing targets of ¥80 Tn in bonds and ¥3 Tn in ETFs. The S&P 500 reached a new record, 2,017, which is up 1.2% for the month and 9.2% for the year. Developed markets ended the month down 2% while emerging markets gained 2%.” according to Deborah Fuhr, Managing Partner at ETFGI.

In October 2014 ETFs/ETPs saw net inflows of US$767 Mn. Commodity ETFs/ETPs gathered the largest net inflows with US$14 Mn, followed by fixed income ETFs/ETPs with US$1 Mn, while equity ETFs/ETPs experienced net outflows of US$914 Mn.
 
Nomura AM gathered the largest net ETF/ETP inflows in October with US$2.2 Bn, followed by Simplex AM with US$207 Mn and NZAM with US$120 Mn net inflows. Year-to-date Nomura AM gathered the largest net ETF/ETP inflows YTD with US$7.9 Bn, followed by Daiwa with US$2.9 Bn and Mitsubishi UFJ with US$2.1 Bn net inflows.

Nomura AM is the largest ETF/ETP provider in terms of assets with US$43 Bn, reflecting 48.1% market share; Nikko AM is second with US$18 Bn and 20.2% market share, followed by Daiwa with US$18 Bn and 19.7% market share. The top three ETF/ETP providers, out of 18, account for 88.0% of Japanese ETF/ETP assets, while the remaining 15 providers each have less than 9% market share.

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