Amundi ETF has reported record results for 2016 driven by new product launches and business development.
The company says that cost-competitiveness and innovation were at the core of its growth in 2016, with a commitment to cost-efficiency and client-driven innovation helping Amundi ETF capture over EUR4 billion of net new assets during the year.
This total AUM of Amundi’s ETF range now stands at EUR25 billion with an annual growth rate of almost 27 per cent in 2016 (vs market average of 14.5 per cent).
The Amundi ETF Global and Regional Emerging Market equity range, attracted more than 40 per cent of total European ETF market flows to equivalent exposures in 2016. This range carries ongoing charges of 0.20 per cent, making it among the lowest available in Europe. As a result, Amundi ETF MSCI Emerging Markets UCITS ETF reached over EUR2 billion in AUM.
Amundi’s suite of innovative fixed income ETF products, is designed to support investors in their search for yield, and includes the newly-launched USD FRN ETF range which provides investors with potential yield whilst also hedging for US-interest rate increases. The Amundi ETF Floating Rate USD Corporate UCITS ETF, which is also available in EUR/USD currency hedging version, has attracted more than EUR1.3 billion inflows over the year.
The Amundi ETF BBB Euro Corporate Investment Grade UCITS ETF, the first ETF launched in Europe providing potential yield of EUR denominated BBB rated Corporate debt (investment grade with lower risk than in the High Yield universe) drew more than EUR130 million net new assets in 2016.
Amundi ETF’s added to its innovative smart beta range with the launch of a new multi factor ETF on European equities, in partnership with index provider ERI Scientific Beta. The company also strengthened its Factor Investing range by launching a full series of MSCI Europe Factor exposures with competitive pricing.
The Amundi single and multi-factor ETF range attracted close to a combined EUR1.2 billion net new assets in 2016, bringing the total AUM to more than EUR2.1 billion in smart beta ETFs.
In addition to continuing to grow market share in the institutional market, one of Amundi ETF’s core objectives for 2017 will be to reinforce its footprint with distribution channels. The expansion of the physical ETF range, which began in 2016 with five core equity products, will support new partnerships, especially through the development of ETF-wrapped solutions for distributors. These solutions bring together Amundi’s experience in advisory, balanced management and capital protected solutions, whilst leveraging relationships with distributors across the globe.
To better assist investors in their asset allocation challenges, Amundi ETF continues to consider innovation as a key development driver in 2017, primarily in the fixed income space. This is to meet the challenge posed by low interest rates; as well as in the smart beta field, to better manage risks and capture rewarded risks.
Fannie Wurtz (pictured), managing director of Amundi ETF, Indexing & Smart Beta, says: “Amundi ETF has been able to achieve very successful results in 2016, with record inflows and sustained growth. In 2016 investors definitively kept on selecting Amundi as a reference partner of choice in passive management, for our first-class replication capabilities as well as pricing power.
“This very positive year confirms Amundi ETF’s robustness and our ability to provide investors with innovative and cost-efficient solutions over the long term, together with the crucial support and experience of Amundi to expand into new client segments in 2017.”