Fixed income ETPs shine

Latest results from BlackRock show that fixed income Exchange Traded Products (ETP) were the fastest growing asset category in 2011.

BlackRock reports that fixed income ETPs were the marketplace's fastest growing asset category in 2011, with assets under management (AUM) increasing by 24.4% ($50.6bn), compared with the previous year. 2010. Global fixed income ETP assets now total $258bn.

Global ETP assets totalled $1.525 trillion at year end, an increase of 2.9%. And US and German equity ETPs both drew particularly strong inflows over the course of 2011.

BlackRock adds that while flows into equity and commodity categories were up and down throughout 2011, fixed income ETPs displayed “resilience, garnering new flows for every month in 2011 and showcasing the popularity of this asset class in a tumultuous year for global markets.”  This expansion was largely driven by US-listed products, with European investors remaining on the sidelines held back by sovereign and bank debt concerns.

In fact, European assets ended the year down 5.3% from 2010, and now total $298.5bn, representing 19.6% of global AUM. Product offerings grew 13.3%, with 258 new products launched and 47 de-listed. European-listed ETPs offering exposure to German equities delivered strong asset gathering results in 2011, representing 97% ($17.3bn) of all flows into equity products listed in Europe during the year.

Elsewhere, BlackRock reports that Asia Pacific (inc. Japan) assets grew by 8.3% in 2011, to now total $92.6bn. This region now represents 6.1% of global AUM. Product offerings grew 38.5% , with 123 new products launched and three de-listed.

www.blackrock.co.uk