Following the news of ETF launches in India a few weeks ago, I spent some time talking to Vishal Kapoor, CEO of Bandhan Mutual Fund, which has USD14 billion in assets and is part of the Bandhan Financial Services group, partly owned by Singapore’s sovereign wealth fund, the GIC.
Kapoor explains that the ETF industry in India has USD60 billion in assets, dominated by institutions who represent USD34 billion of the assets, driven by a government mandate that pension fund or provident fund money must be invested in very secure assets and only through ETFs. The second largest pool of assets in ETFs in India is the USD22 billion invested by corporations using ETFs to access broad market indices. Bandhan has launched a new style product for the Indian HNW and institutional market, based on ETFs, and is planning more.
Our other feature this week is PwC’s annual report on global ETFs, which finds them reporting that despite the challenging market conditions in 2022, seven in 10 survey respondents anticipated that global ETF Assets under Management (AuM) will increase to at least USD15 trillion by 2027, up from USD8.6 trillion in June 2022 and representing a compound annual growth rate (CAGR) of 11.77 per cent. Nearly a third of respondents (29 per cent) were more bullish, expecting ETF AuM will more than double to reach at least USD18 trillion by June 2027, representing a CAGR of 15.92 per cent.
This week brings you a new first from us as our new North American launches column expands to bring you a new monthly outing for the ETF industry in Canada. Follow this link to see the latest Canadian launches.