etp landscape
ETP LANDSCAPE MONTHLY SNAPSHOT | NOVEMBER 29, 2013
The opinions expressed are as of November 29th, 2013 and may change as subsequent conditions vary. FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
What’s Inside BlackRock ETP Research Dodd Kittsley Head of BlackRock ETP Research
Global Overview
3
Year-To-Date Overview
5
Beyond Raw Flows: Capturing Investor Sentiment
6
Reference Schedules Flows by Listing Region
7
Raj Seshadri Head of BlackRock ETP Insights
ETP and Mutual Fund Monthly Flows
8
Largest Year-To-Date Fund Inflows and Outflows
9
For inquiries, contact [email protected]
ETP Flows by Exposure
10
ETP FLOWS IN HOLDING PATTERN ON FED UNCERTAINTY1
Global ETP flows were $15.8bn during November, more moderate relative to
the past two months as expectations resurfaced that Fed tapering may come sooner rather than later. November Equity flows revealed a tale of two halves with Developed Markets
taking in $21.5bn while Emerging Markets experienced outflows of ($4.7bn). • Pan European flows maintained momentum gathering $3.5bn although the pace slowed from the record setting totals witnessed in the prior three months. Year-to-date the category has gathered $24.0bn in contrast to outflows of ($6.5bn) from German ETPs. • US Equities gathered $9.9bn, with investors cautious and looking to protect gains amid concerns that valuations may be stretched. Large Cap and Sector funds fared the best but were offset by Small Cap redemptions. • Emerging Markets Equities – likely the most sensitive to changes in U.S. monetary policy – reversed course to post outflows of ($4.7bn) in November following two months of encouraging inflows. Fixed Income ETP flows reached just $0.9bn in November and continued to
be split sharply by duration with Short Maturity2 funds gathering $1.9bn. • Broad Aggregate and Short Maturity US exposures as well as European Sovereign debt were in demand, but Investment Grade Corporate continued to experience outflows and High Yield flows moderated after an impressive October.
About the ETP Landscape: Monthly Snapshot Report This report provides a summary of global ETP assets under management and asset flows for the most recent month-end period.
Subscribe To receive the ETP Landscape series of reports, please subscribe via our website at:
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[2]
Global Overview GLOBAL EQUITY CUMULATIVE ETP FLOWS1
Global ETP flows during November reached $15.8bn and were heavily concentrated in Developed Markets Equities as they have been throughout much of the year. Investors’ appetite for risk moderated during the month. Continued evidence of slow yet steady economic growth in the US and worldwide increased the likelihood of accommodative monetary policy for the foreseeable future. However, the window is left open just enough in the US for the Fed to consider a start to tapering during its next few meetings. This delicate balance continued to allow stocks to advance but also left the market uncertain and apprehensive of riskier categories should the rally stall. The BlackRock Risk Sentiment Measure3 was also indicative of a de-risking environment (see page 6). November readings for both Equity and Fixed Income were lower than their one-year moving average and revealed a preference for more defensive funds tracking indices such as the S&P 500, MSCI EAFE and Barclays US Aggregate Bond. Pan-European Equities eased off the record-setting pace witnessed of late but still accumulated $3.5bn during the month. The growth continued to come from ETPs listed on both sides of the Atlantic and brought total asset gathering during the second half of the year to $24.3bn following negligible flows through June. The pickup in Pan-European flows this year has by-and-large not spread to single country exposures, which saw outflows of ($1.0bn) in November. Country funds have year-to-date outflows of ($1.6bn) as some of the money attracted to German Equities in recent years has reversed – ($6.5bn) thus far in 2013. This has been partially offset by strong inflows into UK Equity funds. After exhibiting signs of strength during the fall Emerging Markets Equities flows came under pressure during the first half of November. The majority of net redemptions were attributable to the impact of Fed uncertainty on broad market ETPs, which shed ($3.6bn). However, the outflows were halted toward the end of the month after a meeting of top Chinese officials to discuss social and market reforms aimed at boosting the country’s economic growth was well received. This led to November inflows of $1.2bn for funds with singlecountry Chinese exposures.
2013 YTD Flows: $218.0bn Cumulative Net Flows (US$bn)
Highlights (US$):1,2
US Equity
Pan European Equity
Japan Equity
Other Developed
EM Equity
PAN EUROPEAN EQUITY FLOWS1 2013 YTD Net Flows: $24.0bn
10
7.9 4.8
5
0.7
0.2
F
0.2
(1.5
(2.3
J
3.5
2.8
2.3
0
5.3
M
A
M
US Listed
J
J
A
Europe Listed
S
O
N
Other Regions
GLOBAL FIXED INCOME CUMULATIVE ETP FLOWS1,2 2013 YTD Flows: $25.7bn
40
34.7
20
0 (9.0)
-20 J
F
M
A
M
J
J
A
S
O
N
Two other Emerging Markets countries experienced material outflows this month. Brazil, which saw outflows of ($0.7bn), has been out of favor this year while Korea, where outflows totaled ($0.8bn), has not.
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[3]
Global Overview (cont’d) Highlights (US$):1,2 US Equity and Broad Developed Markets led asset gathering for the month with $9.9bn and $7.2bn. Funds tracking the S&P 500 and MSCI EAFE indices drove much of the activity. These two categories also account for 81% of global ETP flows year-to-date. The US Equity activity in November was predominantly from core exposures such as Large Cap, which saw inflows of $8.7bn, and Small Cap, which is among the more fully valued segments of the market and had outflows of ($2.4bn). Sectors contributed an additional $3.4bn with investors putting the most money to work in Industrial, Health Care, Energy and Consumer Cyclical ETPs. Fixed Income flows were muted but positive during the month. The duration rotation continued with Short Maturity2 capturing $1.9bn while outflows for all other maturities were ($1.0bn).
NOVEMBER RESULTS AT A GLANCE1 (US $billions) November 2013
October 2013*
December November 2012 2012
Monthly Flows
15.8
32.9
38.7
25.7
Assets
2,361
2,325
1,944
1,880
# of ETPs
4,981
4,969
4,759
4,741
*Oct-2013 restated with additional Asia Pacific and Europe data
GLOBAL 13-MONTH ROLLING FLOWS1 2013 YTD Net Flows: $209.9bn
(US$bn)
The most popular Fixed Income ETPs in November were Broad Aggregate US funds, counter to the trend most of the year. Investment Grade Corporate continued to see outflows while High Yield Corporate attracted $0.5bn, mostly from Short Maturity funds. Riskier Fixed Income ETP segments such as Emerging Markets debt were out of favor. Notably, Emerging Markets debt has modest year-to-date inflows but splitting out local currency ETPs changes the picture as these funds have attracted $3.4bn. European Fixed Income ETPs gathered $0.4bn during November (mostly European Sovereign bonds) and haven’t been impacted by the turmoil related to Fed tapering, posting year-to-date inflows of $6.3bn. This gives European exposures a high organic growth rate compared to US Fixed Income. Amid signs that inflation is set to remain low, Gold outflows continued to the tune of ($1.4bn) in November and have now reached ($36.4bn) year-to-date, representing a consistent and significant drag on industry growth.
Equity
Fixed Income
Commodities & Others
YTD 2013 Equity Flows: $218.0bn
YTD 2013 Fixed Income Flows: $25.7bn
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
Cumulative Net Flows (US$bn)
CUMULATIVE FIXED INCOME ETP FLOWS1
Cumulative Net Flows (US$bn)
CUMULATIVE EQUITY ETP FLOWS1
[4]
Year-To-Date Overview GLOBAL ETP YTD FLOWS BY EXPOSURE1 Jan-Nov 2013
(US$bn)
Jan-Nov 2012
Annual 2012
GLOBAL ETP CUMULATIVE FLOWS1 YTD Flows in 2013: $209.9bn
224.0
2013
262.7
2012
200
209.9
2011 2010
181.8 173.5
100
0 J
F
M
A
M
J
J
A
S
O
N
D
GLOBAL EQUITY ETP YTD FLOWS BY EXPOSURE1 YTD Flows in 2013: $218.0bn (up 63% from $133.8bn YTD 2012)
2013 YTD
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2012 YTD
[5]
Beyond Raw Flows: Capturing Investor Sentiment Overview3 Measure3
The BlackRock Risk Sentiment indicated in November that investors gravitated toward more defensive categories than in recent months. For US-listed Equity ETPs — which make up 83% of YTD Equity ETPs flows globally — risk sentiment remained low in November for the second consecutive month. Inflows into less risky US Large Cap and Broad Developed Markets funds were accompanied by outflows for higher risk US Small Cap and Broad Emerging Markets ETPs. US-listed Fixed Income risk sentiment declined materially in November after trending upward for much of the year. The greatest outflows during the month came from Investment Grade and Long-Duration Government Bond funds, both of which fall in the higher risk group. By contrast, Broad Aggregate and Short Maturity US funds registered the healthiest flows and both fall into the lower risk group.
Background and Methodology Over longer horizons, our research shows that Risk Sentiment exhibits greater persistence than raw flows alone, consistent with the idea that the composition of flows is indicative of investor sentiment and growing ETP adoption.
To better understand and capture shifts in investor sentiment, we developed the BlackRock Risk Sentiment Measure3 using net inflows into all US-listed ETPs and the daily price volatility since 2005. The measure is computed by asset class (e.g., Equity, Fixed Income) and for different time periods (weekly, monthly, etc.) to reflect shifts in risk appetite that are harder to discern from raw flow data. To compute risk sentiment within a particular asset class, we sort ETPs into two groups, high and low risk, based on their 60-day realized return volatility. For example, currently the high risk group in US equities includes Small Cap Equities and ETPs that track Gold Miners while the low risk group includes Large Cap Equities and Preferred Stock ETPs. Within Fixed Income, High-Yield Bond funds would fall into the high risk group while Short-Term Treasury funds are in the low risk group. Risk sentiment is then defined as the total dollar inflows/outflows for the riskier group of ETPs less those of the safer group, scaled by the dispersion in flows across the sample. Zero on the scale below represents the 1-year moving average. It’s important to note the BlackRock Risk Sentiment Measure considers risk sentiment excluding cash.
EQUITY RISK FLOW SENTIMENT MEASURE
Risk Sentiment
60 40
More risk tolerant
20 0
1-Year Moving Avg.
(20) (40)
More risk averse
(60)
J F M A M J
J A S O N D J F M A M J
J A S O N
FIXED INCOME RISK FLOW SENTIMENT MEASURE
Risk Sentiment
60 40
More risk tolerant
20 1-Year Moving Avg.
0 (20)
More risk averse
(40) (60)
J F M A M J
J A S O N D J F M A M J
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
J A S O N
[6]
Flows By Listing Region Highlights (US$):1 Funds listed in the US account for 70.7% of global ETP
assets
The US has the highest asset growth rate so far this year at
24%, followed by Asia Pacific with 23%
YTD 2013 flows into US-listed products represent 81% of the
Europe had the 5th consecutive month of inflows, with $3.7bn
global total compared to 71% for full-year 2012
in November.
NOVEMBER NET FLOWS BY LISTING REGION1
ASSET GROWTH RATES AND # OF ETPs1 (# ETPs)
Bubble size = Assets ($bn)
2013 Growth in # ETPs
110
US $1,669
90 70
Asia Pacific $169
50
Europe 30 10
Canada Latin America $59 $11
-10-10%
-5%
0%
-30
5%
$414
10%
15%
20%
25%
30%
2013 AUM Growth
Commodities & Others Fixed Income Equity
LISTING REGION VIEW1 Net Flows By Listing Region
Nov 2013
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
YTD 2013
Nov 2013 Assets
% Asset Market Share
Number of Products
[7]
ETP and Mutual Fund Monthly Flows Highlights (US$):1,4 ETP and mutual funds flows have exhibited similar patterns this year – particularly for Equities – as opposed to the divergence seen during 2012. Developed Markets Equity mutual fund inflows of $153.2bn
year-to-date are a mirror image of last year’s outflows. Developed Markets Equity ETPs have gathered $227.9bn, stretching the lead over mutual funds during November and on target to double from their 2012 total. Emerging Markets Equity mutual fund flows are negligible
year-to-date but since January have held up better than ETPs, which now have total redemptions of ($9.8bn) during 2013.
Fixed Income mutual fund flows were slightly positive in
November after 5 months of outflows. Year-to-date redemptions are ($42.7bn), down $200bn from peak inflows of $160.9bn in May before concerns over Fed tapering had set in. ETPs are below 2012 levels, but remain positive year-to-date at $25.7bn. Money Market mutual fund inflows were modest in
November. The year-to-date pattern is similar to last year. Outflows have recovered to ($78.2bn) after bottoming at ($158.6bn) during June in the immediate aftermath of the Fed’s initial comments on tapering. Money Market ETPs are not shown below as assets are minimal. Flows are included with those of Fixed Income funds.
DEVELOPED MARKETS EQUITY FLOWS1,4 250
EMERGING MARKETS EQUITY FLOWS1,4 227.9
200
153.2 116
150 100
60
40
50
30
0
20
(50)
55
50
14
10
(100)
(1.6)
0
(150)
(9.8)
(10)
(200) (206)
(250) J
F
M
A
M
J
J
A
S
O
N
D
(20) J
F
M
A
M
J
J
A
S
O
N
D
MONEY MARKET MUTUAL FUND FLOWS1,4
FIXED INCOME FLOWS1,4 500 450 400 350 300 250 200 150 100 50 0 (50) (100)
435
50 5
0 (50)
70 25.7
(78.2)
(100) (150)
(42.7)
(200) J
F
M
ETP Flows 2013
A
M
J
J
A
S
O
MF Flows 2013
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
N
D
J
F
ETP Flows 2012
M
A
M
J
J
A
S
O
N
D
MF Flows 2012
[8]
Largest Year-To-Date Fund Inflows and Outflows
2013 YTD Inflows
Nov-13 Assets
ETPs as of November (US$mn)1
Bloomberg Ticker
WisdomTree Japan Hedged Equity Fund
DXJ US
9,079
11,840
SPDR S&P 500
SPY US
8,358
163,584
iShares MSCI Japan
EWJ US
6,499
13,350
iShares Core S&P 500
IVV US
6,390
51,558
Vanguard European
VGK US
6,260
12,742
Vanguard Total Stock Market
VTI US
6,083
37,933
iShares MSCI EAFE
EFA US
5,440
51,626
Vanguard FTSE Developed Markets ETF
VEA US
5,166
18,442
Vanguard Short-Term Bond
BSV US
4,845
14,089
PowerShares Senior Loan Portfolio
BKLN US
4,778
6,243
62,898
381,407
Grand Total
ETPs as of November (US$mn)1
Bloomberg Ticker
2013 YTD Outflows
Nov-13 Assets
SPDR Gold
GLD US
(23,293)
33,956
iShares iBoxx $ Investment Grade Corporate Bond
LQD US
(8,399)
15,630
db x-trackers DAX ETF
XDAX GY
(7,666)
3,032
iShares Barclays TIPS Bond
TIP US
(7,390)
13,294
Vanguard FTSE Emerging Markets
VWO US
(7,155)
48,447
iShares MSCI Emerging Markets
EEM US
(3,957)
42,455
iShares MSCI Brazil
EWZ US
(3,570)
4,739
iShares J.P. Morgan USD Emerging Markets Bond
EMB US
(2,619)
3,615
SPDR Barclays Capital High Yield Bond
JNK US
(2,537)
9,963
iShares FTSE China 25
FXI US
(2,329)
5,913
(68,915)
181,044
Grand Total
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[9]
ETP Flows by Exposure: Developed Equity
Exposure (US$mn)
Nov 2013 Net Flows
2013 YTD Net Flows
% of YTD Flows
Assets
8,710 (24) (2,427) (73) 927 (65) (334) 6,713 221 718 123 795 329 966 1,166 7 (354) 42 (576) (14) 3,424 (286) 9,852 (188) 38 9,701 1,326 12 361 1,571
44,093 13,073 14,562 215 10,141 1,037 (1,391) 81,730 1,149 2,987 749 5,426 6,612 5,467 4,827 2,144 5,778 (7) (1,345) 337 34,124 12,786 128,640 (1,100) 792 128,332 6,962 377 1,537 13,730
21.0 6.2 6.9 0.1 4.8 0.5 (0.7) 38.9 0.5 1.4 0.4 2.6 3.1 2.6 2.3 1.0 2.8 (0.0) (0.6) 0.2 16.3 6.1 61.3 (0.5) 0.4 61.1 3.3 0.2 0.7 6.5
462,021 82,691 86,593 1,039 64,018 3,862 12,926 713,150 7,030 16,221 10,322 33,303 31,195 25,058 13,789 28,336 24,215 1,116 7,110 1,085 198,780 69,634 981,564 32,609 7,856 1,022,029 43,251 1,242 3,328 44,684
19.6 3.5 3.7 0.0 2.7 0.2 0.5 30.2 0.3 0.7 0.4 1.4 1.3 1.1 0.6 1.2 1.0 0.0 0.3 0.0 8.4 2.9 41.6 1.4 0.3 43.3 1.8 0.1 0.1 1.9
235 49 69 4 63 2 5 427 15 19 13 44 39 30 18 24 28 6 13 8 257 59 743 87 21 851 79 9 12 69
3,270
22,572
10.8
92,433
3.9
167
299 (30) 3,539 (1,349)
809 555 23,970 (6,452)
0.4 0.3 11.4 (3.1)
13,984 3,246 109,734 39,598
0.6 0.1 4.6 1.7
150 21 340 65
U.K.
185
3,518
1.7
20,290
0.9
52
Switzerland France
(17) (75)
184 (1,069)
0.1 (0.5)
10,262 5,318
0.4 0.2
23 19
Others Europe Single Country Total
271
2,250
1.1
10,876
0.5
69
(985)
(1,569)
(0.7)
86,344
3.7
228
2,554 404 1,632
22,401 1,472 34,481
10.7 0.7 16.4
196,078 17,385 140,438
8.3 0.7 5.9
568 60 237
2,036
35,953
17.1
157,822
6.7
297
7,192 21,483
41,167 227,853
19.6 108.5
198,465 1,574,394
8.4 66.7
456 2,172
1
Large Cap Mid Cap Small Cap Micro Cap US Size and Style Total Market Extended Market Preferred Stock US Size and Style Total Basic Materials Consumer Cyclicals Consumer Non-cyclicals Energy Financials Health Care US Sector Industrials Real Estate Technology Telecommunications Utilities Theme US Sector Total US Strategy US Total Canada Equity North America Regional Equity North America Total Large Cap Mid Cap Pan European Small Cap Size and Style Total Market Pan European Size and Style Total Pan European Sector Pan European Strategy Pan European Total Germany
Country
Europe Total Asia-Pacific
Regional Country
Asia Pacific Total Broad-Based Global /Global ex-US Developed Equity Total
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% of Assets
# ETPs
[ 10 ]
ETP Flows by Exposure: EM Equity, Fixed Income, & Commodities Exposure (US$mn)
Broad EM
1
Broad Emerging Markets Broad Frontier Markets Broad EM Total
Regional EM Brazil China India Russia EM Single Country South Korea Mexico Others EM Single Country Total Emerging Markets Equity Total Equity Total Broad/Aggregate Govt/Corp Emerging Markets Municipal Government - Sovereign Government - US Treasury Government Total Fixed Income Inflation High Yield Corporate Investment Grade Corporate Money Market Mortgage Others Fixed Income Total Broad Market Agriculture Energy Industrial Metals Commodities Precious Metals - Gold Precious Metals - Silver Precious Metals - Others Precious Metals - Total Commodities Total Alternatives Volatility Others Alternatives Total Asset Allocation Currency Israel ETP Global ETP Total
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Nov 2013 Net Flows
2013 YTD Net Flows
% of YTD Flows
Assets
% of Assets
# ETPs
(3,584) 11 (3,573) (171) (674) 1,212 35 (346) (774) (398) 40 (906) (4,650) 16,833 845 297 (489) 55 732 72 804 (575) 503
(5,191) 352 (4,839) (1,928) (4,658) (968) 109 (805) 2,316 1,150 (184) (3,040) (9,807) 218,046 727 11,634 977 (472) 5,554 1,687 7,241 (6,168) 6,107
(2.5) 0.2 (2.3) (0.9) (2.2) (0.5) 0.1 (0.4) 1.1 0.5 (0.1) (1.4) (4.7) 103.9 0.3 5.5 0.5 (0.2) 2.6 0.8 3.4 (2.9) 2.9
127,482 603 128,086 7,886 7,870 58,706 5,454 3,395 19,349 11,028 22,333 128,135 264,107 1,838,501 42,570 32,910 19,052 11,746 40,025 34,742 74,767 25,873 44,443
5.4 0.0 5.4 0.3 0.3 2.5 0.2 0.1 0.8 0.5 0.9 5.4 11.2 77.9 1.8 1.4 0.8 0.5 1.7 1.5 3.2 1.1 1.9
106 5 111 78 45 197 51 17 111 18 149 588 777 2,949 35 24 71 35 259 74 333 38 49
(361)
743
0.4
78,187
3.3
136
(361) (163) 375 929 (119) (125) (285) (93) (1,366) (135) 38 (1,464) (2,086) 7 16 22 109 (39) -
(1,641) (810) 7,412 25,749 (395) (10) (1,366) (86) (36,416) 969 (41) (35,488) (37,347) 1,906 23 1,929 1,388 149 -
(0.8) (0.4) 3.5 12.3 (0.2) (0.0) (0.7) (0.0) (17.3) 0.5 (0.0) (16.9) (17.8) 0.9 0.0 0.9 0.7 0.1 -
4,654 7,566 12,735 354,504 17,127 5,041 7,935 1,933 74,118 11,682 4,583 90,383 122,418 2,987 2,811 5,798 4,403 4,975 30,129
0.2 0.3 0.5 15.0 0.7 0.2 0.3 0.1 3.1 0.5 0.2 3.8 5.2 0.1 0.1 0.2 0.2 0.2 1.3
19 7 32 779 115 194 212 120 118 69 84 271 912 48 71 119 78 144 -
15,768
209,914
100.0
2,360,728
100.0
4,981
[ 11 ]
Endnotes The ETP (or exchange traded product) category encompasses any portfolio exposure security that trades intra-day on an exchange. The data for this report are captured from a number of sources by BlackRock including provider websites, fund prospectuses, provider press releases, provider surveys, Bloomberg, the National Stock Exchange, Strategic Insight Simfund, Wind, and the Bank of Israel. All amounts are reported in US dollars. Flows are derived using daily net asset values and shares outstanding using the most recent data we can capture at month-end. For products with cross-listings, we attribute net flows and assets to the primary listings. For Middle East and Africa, net flows data is not available. Assets are derived using shares outstanding and prices at the end of each month (or the closest date available). Where price is not available, we use an approximation. For ETPs listed in Israel, product level detail is not available. Product level information is aggregated by provider, asset class, exposure, region listed and replication method to produce the various analyses in the report. 1.
Data is as of November 28, 2013 for Europe and November 29, 2013 for the US, Canada, Latin America, Israel, and some Asia ETPs. Some Asia ETP data is as of October 31, 2013. Global ETP flows and assets are sourced using shares outstanding and net asset values from Bloomberg for the US, Canada, Europe, Latin America and some ETPs in Asia. Middle East ETP assets are sourced from the Bank of Israel. ETP flows and assets in China are sourced from Wind. Inflows for years prior to 2010 are sourced from Strategic Insights Simfund. Asset classifications are assigned by the BlackRock based on product definitions from provider websites and product prospectuses. Other static product information is obtained from provider websites, product prospectuses, provider press releases, and provider surveys. Market returns are sourced from Bloomberg.
2.
We classify maturity buckets of a Fixed Income ETP if the fund invests at least 70% of its assets in the corresponding maturity/exposure range: Short maturity includes: underlying security maturities < 3 years and floating rate where the fund holds floating rate securities and/or bank loans. Intermediate includes: 3 years < underlying security maturities < 10 years. The “other” category includes Long-Term: underlying security maturities > 10 years; Broad Maturities: The fund invests in more than two maturity buckets without emphasizing one; Selected Maturities: The fund holds securities with multiple selected range of maturity buckets, i.e. barbell strategy which focuses on the specific short-term and long-term buckets with even weights; and Fixed Maturity: The fund itself has a target maturity date and arranged holdings correspondingly.
3.
Source: BlackRock, Bloomberg, Reuters
4.
Mutual fund data is sourced from EPFR (excluding Money Market funds and ETFs). Full year 2012 and January-October 2013 data is sourced from EPFR monthly data. November 2013 data is sourced from EPFR weekly data for the four weeks ended Nov 27, 2013. Money Market mutual fund flows is sourced from EPFR weekly data for the four weeks ended Nov 27, 2013.
Index returns are for illustrative purposes only and do not represent actual Fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
ABOUT BLACKROCK BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At September 30, 2013, BlackRock’s AUM was $4.096 trillion. BlackRock helps clients meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of September 30, 2013, the firm had approximately 11,200 employees in 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com.
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[ 12 ]
Disclaimer REGULATORY INFORMATION BlackRock Advisors (UK) Limited is authorised and regulated by the Financial Conduct Authority ('FCA'), having its registered office at 12 Throgmorton Avenue, London, EC2N 2DL, England, Tel +44 (0)20 7743 3000. This document has been provided by BlackRock in a private and confidential manner to professional and or institutional investors (as such term is defined according to applicable regulations in the relevant jurisdiction) only upon express request. This document is solely for informational and educational purposes only and represents an assessment of the market environment at a specific time and is not intended to be relied upon by the reader as research, a forecast of future events or a guarantee of future results. This publication does not provide financial, investment or tax advice or information relating to the securities of any particular fund or other issuer. The information and opinions included in this publication are based on publicly available information, are subject to change and should not be relied upon for any purpose other than general information and education. This publication has been prepared without regard to the individual financial circumstances and objectives of those who receive it and the types of securities discussed in this publication may not be suitable for all investors. The information included in this document has been taken from trade and other sources considered to be reliable. This document is published in good faith but no representation or warranty, express or implied, is made by BlackRock or by any person as to its accuracy or completeness and it should not be relied on as such. BlackRock or any of its directors, officers, employees or agents shall have no liability for any loss or damage arising out of the use or reliance on the material provided including without limitation, any loss of profit or any other damage, direct or consequential. Any opinions expressed in this document reflect our analysis at this date and are subject to change. This is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any strategy in any jurisdiction. This document has not been prepared, reviewed or distributed by any broker-dealer affiliate of BlackRock and should not be deemed a product of any such affiliate. BlackRock has not performed any due diligence on products which are not managed by BlackRock and accordingly does not make any remark on their suitability for investment purposes. Past performance is not a guide to future performance . Income is not fixed and may fluctuate. Exposure to foreign currencies can be affected by exchange rate movements. This document or any portion hereof may not be reprinted, sold or redistributed without authorisation from BlackRock Advisors (UK) or its affiliates (together, ‘BlackRock’). This document is not, and under no circumstances is to be construed as an advertisement or any other step in the furtherance of a public offering of shares in the United States. This document is not aimed at persons who are resident in the United States or any province or territory thereof, where the companies/securities are not authorized or registered for distribution and where no prospectus has been filed with any securities commission or regulatory authority. The companies/securities may not be acquired or owned by, or acquired with the assets of, an ERISA Plan.
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[ 13 ]
Disclaimer (continued) NOTICE TO RESIDENTS IN AUSTRALIA: Issued in Australia by BlackRock Investment Management (Australia) Limited ABN 13 006 165 975, AFSL 230523 ("BIMAL") to institutional investors only. iShares® exchange traded funds (“ETFs”) that are made available in Australia are issued by BIMAL, iShares, Inc. ARBN 125 632 279 and iShares Trust ARBN 125 632 411. BlackRock Asset Management Australia Limited ("BAMAL") ABN 33 001 804 566, AFSL 225 398 is the local agent and intermediary for iShares ETFs that are issued by iShares, Inc. and iShares Trust. BIMAL and BAMAL are wholly-owned subsidiaries of BlackRock, Inc. (collectively “BlackRock”). A Product Disclosure Statement (“PDS”) or prospectus for each iShares ETF that is offered in Australia is available at iShares.com.au. You should read the PDS or prospectus and consider whether an iShares ETF is appropriate for you before deciding to invest. iShares securities trade on ASX at market price (not, net asset value ("NAV")). iShares securities may only be redeemed directly by persons called “Authorised Participants”. This information is general in nature, and has been prepared without taking into account any individual's objectives, financial situation, or needs. You should seek independent professional legal, financial, taxation, and/or other professional advice before making an investment decision regarding the iShares funds. FOR INVESTORS IN CANADA: The information and opinions herein are provided for informational purposes only, are subject to change and should not be relied upon as the basis for investment decisions. Past performance is not necessarily indicative of future performance. This document is not and should not be construed as a solicitation or offering of units of any funds or other security in any jurisdiction. No part of this publication may be reproduced in any manner without prior written permission of BlackRock Asset Management Canada Limited and/or its affiliates. FOR INVESTORS IN HONG KONG: Some of the funds mentioned herein have not been registered with the Securities and Futures Commission for offering or distribution in Hong Kong. Accordingly, this material may not be circulated or distributed, nor may the funds be offered or sold whether directly or indirectly, to any person in Hong Kong other than to a Professional Investor as defined in the Securities and Futures Ordinance ("SFO") (Cap. 571 of the laws of Hong Kong) and any regulations there under. NOTICE TO RESIDENTS IN INDIA: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to financial intermediaries only upon their request. The funds mentioned herein have not been registered with any authorities in India. NOTICE TO RESIDENTS IN JAPAN: This document is solely for educational purposes and does not constitute advertisement of financial services targeted at investors in Japan. This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to Qualified Institutional Investors (as defined in the Financial Instruments and Exchange Law of Japan) only upon their request.
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[ 14 ]
Disclaimer (continued) FOR INSTITUTIONAL AND PROFESSIONAL INVESTORS ONLY IN LATIN AMERICA: In Latin America, for Institutional and Professional Investors only. This material is solely for educational purposes only and does not constitute an offer or a solicitation to sell or a solicitation of an offer to buy any shares of any securities (nor shall any such securities be offered or sold to any person) in any jurisdiction within Latin America in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction. It is possible that all or some of the funds mentioned or inferred to in this material have not been registered with the securities regulator of Brazil, Chile, Colombia, Mexico and Peru or any other securities regulator in any Latin American country, and thus, might not be publicly offered, purchased or sold within any such country. The securities regulators of such countries have not confirmed the accuracy of any information contained herein. No information discussed herein can be provided to the general public in Latin America. NOTICE TO RESIDENTS IN SINGAPORE: This document is provided by BlackRock (Singapore) Limited (company registration number: 200010143N) for use with institutional investors only. This document has not been registered as a prospectus with the Monetary Authority of Singapore (MAS). Some of the funds mentioned herein have not been registered with the MAS for distribution in Singapore. Accordingly, this and any other document or material in connection with the offer or sale of the Shares may not be circulated or distributed, nor may the Shares be offered or sold, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor pursuant to Section 304 of the Securities and Futures Act (SFA) or (ii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. First sales of the Shares acquired pursuant to Section 304 of the SFA are subject to the requirements under Section 304A of the SFA. NOTICE TO RESIDENTS IN THAILAND: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Thailand, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Thailand. NOTICE TO RESIDENTS IN VIETNAM: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Vietnam, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Vietnam.
© 2013 BlackRock Advisors (UK) Limited. All rights reserved. Registered Company No. 00796793. All rights reserved. Calls may be monitored or recorded. BLACKROCK, BLACKROCK SOLUTIONS, and iSHARES, are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other marks are those of their respective owners. iS-11218-1213
The opinions expressed are as of November 29th, 2013 and may change as subsequent conditions vary. FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
What’s Inside BlackRock ETP Research Dodd Kittsley Head of BlackRock ETP Research
Global Overview
3
Year-To-Date Overview
5
Beyond Raw Flows: Capturing Investor Sentiment
6
Reference Schedules Flows by Listing Region
7
Raj Seshadri Head of BlackRock ETP Insights
ETP and Mutual Fund Monthly Flows
8
Largest Year-To-Date Fund Inflows and Outflows
9
For inquiries, contact [email protected]
ETP Flows by Exposure
10
ETP FLOWS IN HOLDING PATTERN ON FED UNCERTAINTY1
Global ETP flows were $15.8bn during November, more moderate relative to
the past two months as expectations resurfaced that Fed tapering may come sooner rather than later. November Equity flows revealed a tale of two halves with Developed Markets
taking in $21.5bn while Emerging Markets experienced outflows of ($4.7bn). • Pan European flows maintained momentum gathering $3.5bn although the pace slowed from the record setting totals witnessed in the prior three months. Year-to-date the category has gathered $24.0bn in contrast to outflows of ($6.5bn) from German ETPs. • US Equities gathered $9.9bn, with investors cautious and looking to protect gains amid concerns that valuations may be stretched. Large Cap and Sector funds fared the best but were offset by Small Cap redemptions. • Emerging Markets Equities – likely the most sensitive to changes in U.S. monetary policy – reversed course to post outflows of ($4.7bn) in November following two months of encouraging inflows. Fixed Income ETP flows reached just $0.9bn in November and continued to
be split sharply by duration with Short Maturity2 funds gathering $1.9bn. • Broad Aggregate and Short Maturity US exposures as well as European Sovereign debt were in demand, but Investment Grade Corporate continued to experience outflows and High Yield flows moderated after an impressive October.
About the ETP Landscape: Monthly Snapshot Report This report provides a summary of global ETP assets under management and asset flows for the most recent month-end period.
Subscribe To receive the ETP Landscape series of reports, please subscribe via our website at:
www.blackrockinternational.com/etflsubscribe
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[2]
Global Overview GLOBAL EQUITY CUMULATIVE ETP FLOWS1
Global ETP flows during November reached $15.8bn and were heavily concentrated in Developed Markets Equities as they have been throughout much of the year. Investors’ appetite for risk moderated during the month. Continued evidence of slow yet steady economic growth in the US and worldwide increased the likelihood of accommodative monetary policy for the foreseeable future. However, the window is left open just enough in the US for the Fed to consider a start to tapering during its next few meetings. This delicate balance continued to allow stocks to advance but also left the market uncertain and apprehensive of riskier categories should the rally stall. The BlackRock Risk Sentiment Measure3 was also indicative of a de-risking environment (see page 6). November readings for both Equity and Fixed Income were lower than their one-year moving average and revealed a preference for more defensive funds tracking indices such as the S&P 500, MSCI EAFE and Barclays US Aggregate Bond. Pan-European Equities eased off the record-setting pace witnessed of late but still accumulated $3.5bn during the month. The growth continued to come from ETPs listed on both sides of the Atlantic and brought total asset gathering during the second half of the year to $24.3bn following negligible flows through June. The pickup in Pan-European flows this year has by-and-large not spread to single country exposures, which saw outflows of ($1.0bn) in November. Country funds have year-to-date outflows of ($1.6bn) as some of the money attracted to German Equities in recent years has reversed – ($6.5bn) thus far in 2013. This has been partially offset by strong inflows into UK Equity funds. After exhibiting signs of strength during the fall Emerging Markets Equities flows came under pressure during the first half of November. The majority of net redemptions were attributable to the impact of Fed uncertainty on broad market ETPs, which shed ($3.6bn). However, the outflows were halted toward the end of the month after a meeting of top Chinese officials to discuss social and market reforms aimed at boosting the country’s economic growth was well received. This led to November inflows of $1.2bn for funds with singlecountry Chinese exposures.
2013 YTD Flows: $218.0bn Cumulative Net Flows (US$bn)
Highlights (US$):1,2
US Equity
Pan European Equity
Japan Equity
Other Developed
EM Equity
PAN EUROPEAN EQUITY FLOWS1 2013 YTD Net Flows: $24.0bn
10
7.9 4.8
5
0.7
0.2
F
0.2
(1.5
(2.3
J
3.5
2.8
2.3
0
5.3
M
A
M
US Listed
J
J
A
Europe Listed
S
O
N
Other Regions
GLOBAL FIXED INCOME CUMULATIVE ETP FLOWS1,2 2013 YTD Flows: $25.7bn
40
34.7
20
0 (9.0)
-20 J
F
M
A
M
J
J
A
S
O
N
Two other Emerging Markets countries experienced material outflows this month. Brazil, which saw outflows of ($0.7bn), has been out of favor this year while Korea, where outflows totaled ($0.8bn), has not.
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[3]
Global Overview (cont’d) Highlights (US$):1,2 US Equity and Broad Developed Markets led asset gathering for the month with $9.9bn and $7.2bn. Funds tracking the S&P 500 and MSCI EAFE indices drove much of the activity. These two categories also account for 81% of global ETP flows year-to-date. The US Equity activity in November was predominantly from core exposures such as Large Cap, which saw inflows of $8.7bn, and Small Cap, which is among the more fully valued segments of the market and had outflows of ($2.4bn). Sectors contributed an additional $3.4bn with investors putting the most money to work in Industrial, Health Care, Energy and Consumer Cyclical ETPs. Fixed Income flows were muted but positive during the month. The duration rotation continued with Short Maturity2 capturing $1.9bn while outflows for all other maturities were ($1.0bn).
NOVEMBER RESULTS AT A GLANCE1 (US $billions) November 2013
October 2013*
December November 2012 2012
Monthly Flows
15.8
32.9
38.7
25.7
Assets
2,361
2,325
1,944
1,880
# of ETPs
4,981
4,969
4,759
4,741
*Oct-2013 restated with additional Asia Pacific and Europe data
GLOBAL 13-MONTH ROLLING FLOWS1 2013 YTD Net Flows: $209.9bn
(US$bn)
The most popular Fixed Income ETPs in November were Broad Aggregate US funds, counter to the trend most of the year. Investment Grade Corporate continued to see outflows while High Yield Corporate attracted $0.5bn, mostly from Short Maturity funds. Riskier Fixed Income ETP segments such as Emerging Markets debt were out of favor. Notably, Emerging Markets debt has modest year-to-date inflows but splitting out local currency ETPs changes the picture as these funds have attracted $3.4bn. European Fixed Income ETPs gathered $0.4bn during November (mostly European Sovereign bonds) and haven’t been impacted by the turmoil related to Fed tapering, posting year-to-date inflows of $6.3bn. This gives European exposures a high organic growth rate compared to US Fixed Income. Amid signs that inflation is set to remain low, Gold outflows continued to the tune of ($1.4bn) in November and have now reached ($36.4bn) year-to-date, representing a consistent and significant drag on industry growth.
Equity
Fixed Income
Commodities & Others
YTD 2013 Equity Flows: $218.0bn
YTD 2013 Fixed Income Flows: $25.7bn
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
Cumulative Net Flows (US$bn)
CUMULATIVE FIXED INCOME ETP FLOWS1
Cumulative Net Flows (US$bn)
CUMULATIVE EQUITY ETP FLOWS1
[4]
Year-To-Date Overview GLOBAL ETP YTD FLOWS BY EXPOSURE1 Jan-Nov 2013
(US$bn)
Jan-Nov 2012
Annual 2012
GLOBAL ETP CUMULATIVE FLOWS1 YTD Flows in 2013: $209.9bn
224.0
2013
262.7
2012
200
209.9
2011 2010
181.8 173.5
100
0 J
F
M
A
M
J
J
A
S
O
N
D
GLOBAL EQUITY ETP YTD FLOWS BY EXPOSURE1 YTD Flows in 2013: $218.0bn (up 63% from $133.8bn YTD 2012)
2013 YTD
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
2012 YTD
[5]
Beyond Raw Flows: Capturing Investor Sentiment Overview3 Measure3
The BlackRock Risk Sentiment indicated in November that investors gravitated toward more defensive categories than in recent months. For US-listed Equity ETPs — which make up 83% of YTD Equity ETPs flows globally — risk sentiment remained low in November for the second consecutive month. Inflows into less risky US Large Cap and Broad Developed Markets funds were accompanied by outflows for higher risk US Small Cap and Broad Emerging Markets ETPs. US-listed Fixed Income risk sentiment declined materially in November after trending upward for much of the year. The greatest outflows during the month came from Investment Grade and Long-Duration Government Bond funds, both of which fall in the higher risk group. By contrast, Broad Aggregate and Short Maturity US funds registered the healthiest flows and both fall into the lower risk group.
Background and Methodology Over longer horizons, our research shows that Risk Sentiment exhibits greater persistence than raw flows alone, consistent with the idea that the composition of flows is indicative of investor sentiment and growing ETP adoption.
To better understand and capture shifts in investor sentiment, we developed the BlackRock Risk Sentiment Measure3 using net inflows into all US-listed ETPs and the daily price volatility since 2005. The measure is computed by asset class (e.g., Equity, Fixed Income) and for different time periods (weekly, monthly, etc.) to reflect shifts in risk appetite that are harder to discern from raw flow data. To compute risk sentiment within a particular asset class, we sort ETPs into two groups, high and low risk, based on their 60-day realized return volatility. For example, currently the high risk group in US equities includes Small Cap Equities and ETPs that track Gold Miners while the low risk group includes Large Cap Equities and Preferred Stock ETPs. Within Fixed Income, High-Yield Bond funds would fall into the high risk group while Short-Term Treasury funds are in the low risk group. Risk sentiment is then defined as the total dollar inflows/outflows for the riskier group of ETPs less those of the safer group, scaled by the dispersion in flows across the sample. Zero on the scale below represents the 1-year moving average. It’s important to note the BlackRock Risk Sentiment Measure considers risk sentiment excluding cash.
EQUITY RISK FLOW SENTIMENT MEASURE
Risk Sentiment
60 40
More risk tolerant
20 0
1-Year Moving Avg.
(20) (40)
More risk averse
(60)
J F M A M J
J A S O N D J F M A M J
J A S O N
FIXED INCOME RISK FLOW SENTIMENT MEASURE
Risk Sentiment
60 40
More risk tolerant
20 1-Year Moving Avg.
0 (20)
More risk averse
(40) (60)
J F M A M J
J A S O N D J F M A M J
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
J A S O N
[6]
Flows By Listing Region Highlights (US$):1 Funds listed in the US account for 70.7% of global ETP
assets
The US has the highest asset growth rate so far this year at
24%, followed by Asia Pacific with 23%
YTD 2013 flows into US-listed products represent 81% of the
Europe had the 5th consecutive month of inflows, with $3.7bn
global total compared to 71% for full-year 2012
in November.
NOVEMBER NET FLOWS BY LISTING REGION1
ASSET GROWTH RATES AND # OF ETPs1 (# ETPs)
Bubble size = Assets ($bn)
2013 Growth in # ETPs
110
US $1,669
90 70
Asia Pacific $169
50
Europe 30 10
Canada Latin America $59 $11
-10-10%
-5%
0%
-30
5%
$414
10%
15%
20%
25%
30%
2013 AUM Growth
Commodities & Others Fixed Income Equity
LISTING REGION VIEW1 Net Flows By Listing Region
Nov 2013
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
YTD 2013
Nov 2013 Assets
% Asset Market Share
Number of Products
[7]
ETP and Mutual Fund Monthly Flows Highlights (US$):1,4 ETP and mutual funds flows have exhibited similar patterns this year – particularly for Equities – as opposed to the divergence seen during 2012. Developed Markets Equity mutual fund inflows of $153.2bn
year-to-date are a mirror image of last year’s outflows. Developed Markets Equity ETPs have gathered $227.9bn, stretching the lead over mutual funds during November and on target to double from their 2012 total. Emerging Markets Equity mutual fund flows are negligible
year-to-date but since January have held up better than ETPs, which now have total redemptions of ($9.8bn) during 2013.
Fixed Income mutual fund flows were slightly positive in
November after 5 months of outflows. Year-to-date redemptions are ($42.7bn), down $200bn from peak inflows of $160.9bn in May before concerns over Fed tapering had set in. ETPs are below 2012 levels, but remain positive year-to-date at $25.7bn. Money Market mutual fund inflows were modest in
November. The year-to-date pattern is similar to last year. Outflows have recovered to ($78.2bn) after bottoming at ($158.6bn) during June in the immediate aftermath of the Fed’s initial comments on tapering. Money Market ETPs are not shown below as assets are minimal. Flows are included with those of Fixed Income funds.
DEVELOPED MARKETS EQUITY FLOWS1,4 250
EMERGING MARKETS EQUITY FLOWS1,4 227.9
200
153.2 116
150 100
60
40
50
30
0
20
(50)
55
50
14
10
(100)
(1.6)
0
(150)
(9.8)
(10)
(200) (206)
(250) J
F
M
A
M
J
J
A
S
O
N
D
(20) J
F
M
A
M
J
J
A
S
O
N
D
MONEY MARKET MUTUAL FUND FLOWS1,4
FIXED INCOME FLOWS1,4 500 450 400 350 300 250 200 150 100 50 0 (50) (100)
435
50 5
0 (50)
70 25.7
(78.2)
(100) (150)
(42.7)
(200) J
F
M
ETP Flows 2013
A
M
J
J
A
S
O
MF Flows 2013
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
N
D
J
F
ETP Flows 2012
M
A
M
J
J
A
S
O
N
D
MF Flows 2012
[8]
Largest Year-To-Date Fund Inflows and Outflows
2013 YTD Inflows
Nov-13 Assets
ETPs as of November (US$mn)1
Bloomberg Ticker
WisdomTree Japan Hedged Equity Fund
DXJ US
9,079
11,840
SPDR S&P 500
SPY US
8,358
163,584
iShares MSCI Japan
EWJ US
6,499
13,350
iShares Core S&P 500
IVV US
6,390
51,558
Vanguard European
VGK US
6,260
12,742
Vanguard Total Stock Market
VTI US
6,083
37,933
iShares MSCI EAFE
EFA US
5,440
51,626
Vanguard FTSE Developed Markets ETF
VEA US
5,166
18,442
Vanguard Short-Term Bond
BSV US
4,845
14,089
PowerShares Senior Loan Portfolio
BKLN US
4,778
6,243
62,898
381,407
Grand Total
ETPs as of November (US$mn)1
Bloomberg Ticker
2013 YTD Outflows
Nov-13 Assets
SPDR Gold
GLD US
(23,293)
33,956
iShares iBoxx $ Investment Grade Corporate Bond
LQD US
(8,399)
15,630
db x-trackers DAX ETF
XDAX GY
(7,666)
3,032
iShares Barclays TIPS Bond
TIP US
(7,390)
13,294
Vanguard FTSE Emerging Markets
VWO US
(7,155)
48,447
iShares MSCI Emerging Markets
EEM US
(3,957)
42,455
iShares MSCI Brazil
EWZ US
(3,570)
4,739
iShares J.P. Morgan USD Emerging Markets Bond
EMB US
(2,619)
3,615
SPDR Barclays Capital High Yield Bond
JNK US
(2,537)
9,963
iShares FTSE China 25
FXI US
(2,329)
5,913
(68,915)
181,044
Grand Total
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
[9]
ETP Flows by Exposure: Developed Equity
Exposure (US$mn)
Nov 2013 Net Flows
2013 YTD Net Flows
% of YTD Flows
Assets
8,710 (24) (2,427) (73) 927 (65) (334) 6,713 221 718 123 795 329 966 1,166 7 (354) 42 (576) (14) 3,424 (286) 9,852 (188) 38 9,701 1,326 12 361 1,571
44,093 13,073 14,562 215 10,141 1,037 (1,391) 81,730 1,149 2,987 749 5,426 6,612 5,467 4,827 2,144 5,778 (7) (1,345) 337 34,124 12,786 128,640 (1,100) 792 128,332 6,962 377 1,537 13,730
21.0 6.2 6.9 0.1 4.8 0.5 (0.7) 38.9 0.5 1.4 0.4 2.6 3.1 2.6 2.3 1.0 2.8 (0.0) (0.6) 0.2 16.3 6.1 61.3 (0.5) 0.4 61.1 3.3 0.2 0.7 6.5
462,021 82,691 86,593 1,039 64,018 3,862 12,926 713,150 7,030 16,221 10,322 33,303 31,195 25,058 13,789 28,336 24,215 1,116 7,110 1,085 198,780 69,634 981,564 32,609 7,856 1,022,029 43,251 1,242 3,328 44,684
19.6 3.5 3.7 0.0 2.7 0.2 0.5 30.2 0.3 0.7 0.4 1.4 1.3 1.1 0.6 1.2 1.0 0.0 0.3 0.0 8.4 2.9 41.6 1.4 0.3 43.3 1.8 0.1 0.1 1.9
235 49 69 4 63 2 5 427 15 19 13 44 39 30 18 24 28 6 13 8 257 59 743 87 21 851 79 9 12 69
3,270
22,572
10.8
92,433
3.9
167
299 (30) 3,539 (1,349)
809 555 23,970 (6,452)
0.4 0.3 11.4 (3.1)
13,984 3,246 109,734 39,598
0.6 0.1 4.6 1.7
150 21 340 65
U.K.
185
3,518
1.7
20,290
0.9
52
Switzerland France
(17) (75)
184 (1,069)
0.1 (0.5)
10,262 5,318
0.4 0.2
23 19
Others Europe Single Country Total
271
2,250
1.1
10,876
0.5
69
(985)
(1,569)
(0.7)
86,344
3.7
228
2,554 404 1,632
22,401 1,472 34,481
10.7 0.7 16.4
196,078 17,385 140,438
8.3 0.7 5.9
568 60 237
2,036
35,953
17.1
157,822
6.7
297
7,192 21,483
41,167 227,853
19.6 108.5
198,465 1,574,394
8.4 66.7
456 2,172
1
Large Cap Mid Cap Small Cap Micro Cap US Size and Style Total Market Extended Market Preferred Stock US Size and Style Total Basic Materials Consumer Cyclicals Consumer Non-cyclicals Energy Financials Health Care US Sector Industrials Real Estate Technology Telecommunications Utilities Theme US Sector Total US Strategy US Total Canada Equity North America Regional Equity North America Total Large Cap Mid Cap Pan European Small Cap Size and Style Total Market Pan European Size and Style Total Pan European Sector Pan European Strategy Pan European Total Germany
Country
Europe Total Asia-Pacific
Regional Country
Asia Pacific Total Broad-Based Global /Global ex-US Developed Equity Total
FOR MEDIA ONLY. NOT FOR PUBLIC DISTRIBUTION
% of Assets
# ETPs
[ 10 ]
ETP Flows by Exposure: EM Equity, Fixed Income, & Commodities Exposure (US$mn)
Broad EM
1
Broad Emerging Markets Broad Frontier Markets Broad EM Total
Regional EM Brazil China India Russia EM Single Country South Korea Mexico Others EM Single Country Total Emerging Markets Equity Total Equity Total Broad/Aggregate Govt/Corp Emerging Markets Municipal Government - Sovereign Government - US Treasury Government Total Fixed Income Inflation High Yield Corporate Investment Grade Corporate Money Market Mortgage Others Fixed Income Total Broad Market Agriculture Energy Industrial Metals Commodities Precious Metals - Gold Precious Metals - Silver Precious Metals - Others Precious Metals - Total Commodities Total Alternatives Volatility Others Alternatives Total Asset Allocation Currency Israel ETP Global ETP Total
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Nov 2013 Net Flows
2013 YTD Net Flows
% of YTD Flows
Assets
% of Assets
# ETPs
(3,584) 11 (3,573) (171) (674) 1,212 35 (346) (774) (398) 40 (906) (4,650) 16,833 845 297 (489) 55 732 72 804 (575) 503
(5,191) 352 (4,839) (1,928) (4,658) (968) 109 (805) 2,316 1,150 (184) (3,040) (9,807) 218,046 727 11,634 977 (472) 5,554 1,687 7,241 (6,168) 6,107
(2.5) 0.2 (2.3) (0.9) (2.2) (0.5) 0.1 (0.4) 1.1 0.5 (0.1) (1.4) (4.7) 103.9 0.3 5.5 0.5 (0.2) 2.6 0.8 3.4 (2.9) 2.9
127,482 603 128,086 7,886 7,870 58,706 5,454 3,395 19,349 11,028 22,333 128,135 264,107 1,838,501 42,570 32,910 19,052 11,746 40,025 34,742 74,767 25,873 44,443
5.4 0.0 5.4 0.3 0.3 2.5 0.2 0.1 0.8 0.5 0.9 5.4 11.2 77.9 1.8 1.4 0.8 0.5 1.7 1.5 3.2 1.1 1.9
106 5 111 78 45 197 51 17 111 18 149 588 777 2,949 35 24 71 35 259 74 333 38 49
(361)
743
0.4
78,187
3.3
136
(361) (163) 375 929 (119) (125) (285) (93) (1,366) (135) 38 (1,464) (2,086) 7 16 22 109 (39) -
(1,641) (810) 7,412 25,749 (395) (10) (1,366) (86) (36,416) 969 (41) (35,488) (37,347) 1,906 23 1,929 1,388 149 -
(0.8) (0.4) 3.5 12.3 (0.2) (0.0) (0.7) (0.0) (17.3) 0.5 (0.0) (16.9) (17.8) 0.9 0.0 0.9 0.7 0.1 -
4,654 7,566 12,735 354,504 17,127 5,041 7,935 1,933 74,118 11,682 4,583 90,383 122,418 2,987 2,811 5,798 4,403 4,975 30,129
0.2 0.3 0.5 15.0 0.7 0.2 0.3 0.1 3.1 0.5 0.2 3.8 5.2 0.1 0.1 0.2 0.2 0.2 1.3
19 7 32 779 115 194 212 120 118 69 84 271 912 48 71 119 78 144 -
15,768
209,914
100.0
2,360,728
100.0
4,981
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Endnotes The ETP (or exchange traded product) category encompasses any portfolio exposure security that trades intra-day on an exchange. The data for this report are captured from a number of sources by BlackRock including provider websites, fund prospectuses, provider press releases, provider surveys, Bloomberg, the National Stock Exchange, Strategic Insight Simfund, Wind, and the Bank of Israel. All amounts are reported in US dollars. Flows are derived using daily net asset values and shares outstanding using the most recent data we can capture at month-end. For products with cross-listings, we attribute net flows and assets to the primary listings. For Middle East and Africa, net flows data is not available. Assets are derived using shares outstanding and prices at the end of each month (or the closest date available). Where price is not available, we use an approximation. For ETPs listed in Israel, product level detail is not available. Product level information is aggregated by provider, asset class, exposure, region listed and replication method to produce the various analyses in the report. 1.
Data is as of November 28, 2013 for Europe and November 29, 2013 for the US, Canada, Latin America, Israel, and some Asia ETPs. Some Asia ETP data is as of October 31, 2013. Global ETP flows and assets are sourced using shares outstanding and net asset values from Bloomberg for the US, Canada, Europe, Latin America and some ETPs in Asia. Middle East ETP assets are sourced from the Bank of Israel. ETP flows and assets in China are sourced from Wind. Inflows for years prior to 2010 are sourced from Strategic Insights Simfund. Asset classifications are assigned by the BlackRock based on product definitions from provider websites and product prospectuses. Other static product information is obtained from provider websites, product prospectuses, provider press releases, and provider surveys. Market returns are sourced from Bloomberg.
2.
We classify maturity buckets of a Fixed Income ETP if the fund invests at least 70% of its assets in the corresponding maturity/exposure range: Short maturity includes: underlying security maturities < 3 years and floating rate where the fund holds floating rate securities and/or bank loans. Intermediate includes: 3 years < underlying security maturities < 10 years. The “other” category includes Long-Term: underlying security maturities > 10 years; Broad Maturities: The fund invests in more than two maturity buckets without emphasizing one; Selected Maturities: The fund holds securities with multiple selected range of maturity buckets, i.e. barbell strategy which focuses on the specific short-term and long-term buckets with even weights; and Fixed Maturity: The fund itself has a target maturity date and arranged holdings correspondingly.
3.
Source: BlackRock, Bloomberg, Reuters
4.
Mutual fund data is sourced from EPFR (excluding Money Market funds and ETFs). Full year 2012 and January-October 2013 data is sourced from EPFR monthly data. November 2013 data is sourced from EPFR weekly data for the four weeks ended Nov 27, 2013. Money Market mutual fund flows is sourced from EPFR weekly data for the four weeks ended Nov 27, 2013.
Index returns are for illustrative purposes only and do not represent actual Fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
ABOUT BLACKROCK BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At September 30, 2013, BlackRock’s AUM was $4.096 trillion. BlackRock helps clients meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of September 30, 2013, the firm had approximately 11,200 employees in 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com.
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[ 12 ]
Disclaimer REGULATORY INFORMATION BlackRock Advisors (UK) Limited is authorised and regulated by the Financial Conduct Authority ('FCA'), having its registered office at 12 Throgmorton Avenue, London, EC2N 2DL, England, Tel +44 (0)20 7743 3000. This document has been provided by BlackRock in a private and confidential manner to professional and or institutional investors (as such term is defined according to applicable regulations in the relevant jurisdiction) only upon express request. This document is solely for informational and educational purposes only and represents an assessment of the market environment at a specific time and is not intended to be relied upon by the reader as research, a forecast of future events or a guarantee of future results. This publication does not provide financial, investment or tax advice or information relating to the securities of any particular fund or other issuer. The information and opinions included in this publication are based on publicly available information, are subject to change and should not be relied upon for any purpose other than general information and education. This publication has been prepared without regard to the individual financial circumstances and objectives of those who receive it and the types of securities discussed in this publication may not be suitable for all investors. The information included in this document has been taken from trade and other sources considered to be reliable. This document is published in good faith but no representation or warranty, express or implied, is made by BlackRock or by any person as to its accuracy or completeness and it should not be relied on as such. BlackRock or any of its directors, officers, employees or agents shall have no liability for any loss or damage arising out of the use or reliance on the material provided including without limitation, any loss of profit or any other damage, direct or consequential. Any opinions expressed in this document reflect our analysis at this date and are subject to change. This is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any strategy in any jurisdiction. This document has not been prepared, reviewed or distributed by any broker-dealer affiliate of BlackRock and should not be deemed a product of any such affiliate. BlackRock has not performed any due diligence on products which are not managed by BlackRock and accordingly does not make any remark on their suitability for investment purposes. Past performance is not a guide to future performance . Income is not fixed and may fluctuate. Exposure to foreign currencies can be affected by exchange rate movements. This document or any portion hereof may not be reprinted, sold or redistributed without authorisation from BlackRock Advisors (UK) or its affiliates (together, ‘BlackRock’). This document is not, and under no circumstances is to be construed as an advertisement or any other step in the furtherance of a public offering of shares in the United States. This document is not aimed at persons who are resident in the United States or any province or territory thereof, where the companies/securities are not authorized or registered for distribution and where no prospectus has been filed with any securities commission or regulatory authority. The companies/securities may not be acquired or owned by, or acquired with the assets of, an ERISA Plan.
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[ 13 ]
Disclaimer (continued) NOTICE TO RESIDENTS IN AUSTRALIA: Issued in Australia by BlackRock Investment Management (Australia) Limited ABN 13 006 165 975, AFSL 230523 ("BIMAL") to institutional investors only. iShares® exchange traded funds (“ETFs”) that are made available in Australia are issued by BIMAL, iShares, Inc. ARBN 125 632 279 and iShares Trust ARBN 125 632 411. BlackRock Asset Management Australia Limited ("BAMAL") ABN 33 001 804 566, AFSL 225 398 is the local agent and intermediary for iShares ETFs that are issued by iShares, Inc. and iShares Trust. BIMAL and BAMAL are wholly-owned subsidiaries of BlackRock, Inc. (collectively “BlackRock”). A Product Disclosure Statement (“PDS”) or prospectus for each iShares ETF that is offered in Australia is available at iShares.com.au. You should read the PDS or prospectus and consider whether an iShares ETF is appropriate for you before deciding to invest. iShares securities trade on ASX at market price (not, net asset value ("NAV")). iShares securities may only be redeemed directly by persons called “Authorised Participants”. This information is general in nature, and has been prepared without taking into account any individual's objectives, financial situation, or needs. You should seek independent professional legal, financial, taxation, and/or other professional advice before making an investment decision regarding the iShares funds. FOR INVESTORS IN CANADA: The information and opinions herein are provided for informational purposes only, are subject to change and should not be relied upon as the basis for investment decisions. Past performance is not necessarily indicative of future performance. This document is not and should not be construed as a solicitation or offering of units of any funds or other security in any jurisdiction. No part of this publication may be reproduced in any manner without prior written permission of BlackRock Asset Management Canada Limited and/or its affiliates. FOR INVESTORS IN HONG KONG: Some of the funds mentioned herein have not been registered with the Securities and Futures Commission for offering or distribution in Hong Kong. Accordingly, this material may not be circulated or distributed, nor may the funds be offered or sold whether directly or indirectly, to any person in Hong Kong other than to a Professional Investor as defined in the Securities and Futures Ordinance ("SFO") (Cap. 571 of the laws of Hong Kong) and any regulations there under. NOTICE TO RESIDENTS IN INDIA: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to financial intermediaries only upon their request. The funds mentioned herein have not been registered with any authorities in India. NOTICE TO RESIDENTS IN JAPAN: This document is solely for educational purposes and does not constitute advertisement of financial services targeted at investors in Japan. This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to Qualified Institutional Investors (as defined in the Financial Instruments and Exchange Law of Japan) only upon their request.
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[ 14 ]
Disclaimer (continued) FOR INSTITUTIONAL AND PROFESSIONAL INVESTORS ONLY IN LATIN AMERICA: In Latin America, for Institutional and Professional Investors only. This material is solely for educational purposes only and does not constitute an offer or a solicitation to sell or a solicitation of an offer to buy any shares of any securities (nor shall any such securities be offered or sold to any person) in any jurisdiction within Latin America in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction. It is possible that all or some of the funds mentioned or inferred to in this material have not been registered with the securities regulator of Brazil, Chile, Colombia, Mexico and Peru or any other securities regulator in any Latin American country, and thus, might not be publicly offered, purchased or sold within any such country. The securities regulators of such countries have not confirmed the accuracy of any information contained herein. No information discussed herein can be provided to the general public in Latin America. NOTICE TO RESIDENTS IN SINGAPORE: This document is provided by BlackRock (Singapore) Limited (company registration number: 200010143N) for use with institutional investors only. This document has not been registered as a prospectus with the Monetary Authority of Singapore (MAS). Some of the funds mentioned herein have not been registered with the MAS for distribution in Singapore. Accordingly, this and any other document or material in connection with the offer or sale of the Shares may not be circulated or distributed, nor may the Shares be offered or sold, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor pursuant to Section 304 of the Securities and Futures Act (SFA) or (ii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. First sales of the Shares acquired pursuant to Section 304 of the SFA are subject to the requirements under Section 304A of the SFA. NOTICE TO RESIDENTS IN THAILAND: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Thailand, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Thailand. NOTICE TO RESIDENTS IN VIETNAM: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Vietnam, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Vietnam.
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