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Amundi ETF – Best Fixed Income (all excluding cash) ETF Management Firm & Best Emerging Markets Equity ETF Management Firm

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Amundi ETF has enjoyed a very good year in 2016 and Matthieu Guignard (pctured), Global Head of Product Development and Capital Markets – Amundi ETF, Indexing & Smart Beta reports that the beginning of 2017 is looking good too.

"We had very good net new assets last year, collecting over EUR4 billion, mainly on Emerging Equities, Smart Beta and Fixed Income ETFs," Guignard says. "Our market share has grown to almost 5 per cent1 in 2016 and Global and Regional emerging equity ETFs actively contributed to this achievement, by attracting up to 40 per cent2 of the net flows in the market. This is due to our position in terms of pricing, as we offer the lowest fee level of 20 basis points on our Emerging Equity ETFs3.” 

Guignard comments that the low cost structure, efficiency, transparency and good performance of ETFs have all contributed to their growth as a sector. Smart Beta has been important for Amundi over the year as well. "Last year, Smart Beta ETFs collected EUR7.9 billion in Europe and Amundi collected over EUR1.2 billion of that."

"If the beginning of the year was rather focused on Minimum Volatility strategies, in the end Value factor won over the bulk of 2016's net new assets," Guignard says. 

The interest for multi factor exposures was also remarkable last year and continues to attract investors, especially large institutions. "It started with the largest institutions like pensions or sovereign funds that are usually advanced in these, but afterwards other institutions have started showing a lot of interest in those strategies both as complement to traditional passive management or switching from active to Smart Beta strategies."

Guignard also observes that retail investors are also interested in this market, but the way these products are marketed to them is different.

"Retail investors want to know the benefits in terms of the risk/return profile while institutions go more into the details of how it works, how is the index built, what is the methodology as they need to follow a strict due diligence process – our setup and our product offering enables to reach both segments."

2016 was a very successful year for Amundi's fixed income product range too, especially with its floating rate note ETF range, proving very popular.

"A Floating Rate Note (FRN) is a debt instrument with a variable interest rate: its coupon is composed of a short term reference rate and a fixed spread. As the reference rate increases or decreases so does the coupon, which is adjusted on a regular basis 

Not only FRN's low duration shields investors from the negative price impact of increasing rates, but their floating coupon allows them to offer an increasing yield. 

The Amundi floating rate note products come in three versions, providing exposure to Euro-denominated and USD-denominated FRNs, and a specific share class providing currency hedge Euro/USD, exposed to US corporate FRNs.

Amundi's range of FRN ETFs has already more than EUR2 billion assets under management4, confirming the appetite for those instruments in today's rate environment. The Amundi ETF Floating Rate USD Corporate UCITS ETF – Hedged EUR classified as the 2016-launched ETF which reached the highest AUM by the year end5. 

 


1. Source: Amundi ETF, Indexing & Smart Beta, based on Deutsche Bank European ETF Market Review 2016.

2. Source: Amundi ETF, Indexing & Smart Beta as at 31/12/2016. Calculated on similar exposures. 

3. For Global and Region Emerging Markets, ongoing charges at 0.20%, the cheapest on the European market. Source Amundi ETF/Bloomberg as at 31/12/2016: comparison with ETFs strictly replicating the same index (i.e. MSCI), whatever their name, without taking into account the fees applied by financial intermediaries, as these are borne directly by the investor.

4. Source: Amundi ETF/Bloomberg as of December 2016.

5. Source: ETFGI European ETF and ETP industry insights December 2016. AUM at 31/12/16.

Investment in a Fund carries a substantial degree of risk. Criteria, subscription conditions and legal documentation are available on
www.amundi.com.

This document is not intended for citizens or residents of the United States of America or to any "U.S. Person" , as this term is defined in SEC Regulation S under the U.S. Securities Act of 1933.

Transaction cost and commissions may occur when trading ETFs.

This document is only directed at persons who are professional clients or eligible counterparties for the purposes of the FCA's Conduct of Business Sourcebook.

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