The FSA Spy market buzz – 28 March 2025
JP Morgan Asset Management gets enhanced; Thailand wants some leverage; Natxis is surveying the world; A billionaire here, another there; Business social media lunacy; Andrew Carnegie’s wisdom and more.
Global ETF assets under management to exceed $7trn by 2021
Growth in exchange traded funds (ETFs) is expected to accelerate over the next five years, with global assets under management set to exceed $7trn by 2021, according to a PwC report.
Approximately $243bn is currently invested in ETFs in the Asia Pacific region, which is about half the size of the European ETF market.
Asset growth stalled in 2015 as China’s economy faltered and the volatility of its stock markets significantly increased. But cross-border barriers are coming down in much of the region, which should provide for more rapid growth going forward across investor segments.
Product innovation continues to lag behind North America and Europe, with more than 90% of Asia ETF AUM invested only in equity ETFs as of December 2015. However, in early February 2016, Hong Kong’s SFC issued a circular outlining provisions in which leveraged and inverse ETFs would be permitted.
Commission-dependent distribution channels and slowing economic growth, however, could prove to be substantial hurdles.
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