24 APR, 2023
By RankiaPro Europe
2022 was a challenging year for the asset management industry, both in terms of performance (with average declines of 10% for global fixed-income funds, 14% for balanced funds, and 16% for global equity funds) and in terms of fund outflows, which reached a record EUR 230 billion globally. 67 billion, in line with the annual average of net inflows over the past ten years of around 70 billion euros.
The trend has continued this year: in contrast to the stagnation of actively managed funds, ETFs have recorded inflows of more than EUR 40 billion in the first three months, which would be equivalent to around EUR 160 billion per year if the current level were to continue.
What is the reason for their success? Quantalys Harvest Group's ETF Management Observatory, in partnership with BNP Paribas Asset Management, highlights several points from a European perspective:
"The 2022 Observatory illustrates the growing deployment of ETFs in wealth management and retail investment through life insurance. The growth of advised or mandated management, driven by MiFID II, and the resulting boom in ETF mandates will encourage further changes and increase the popularity of ETFs. In addition, the evolution of management practices (more tactical, more digital, more thematic, or more engaged, i.e. SRI-oriented) also favors ETFs. It is therefore essential that an independent research firm such as Quantalys helps its clients to better analyze and understand these tools, to understand their specific risks, and to anticipate future changes. This is why we have decided to open a dedicated ETF section on our platform and develop specialized ETF tools in our portfolio management modules. We have also decided to launch the ETF Management Observatory together with BNP Paribas Asset Management to provide reliable, independent, and in-depth data on the market at the European level.Jean-Paul Raymond, Head of Research and Development at Quantalys Harvest Group.
For all these structural reasons, Quantalys Harvest Group's ETF Management Observatory, in partnership with BNP Paribas Asset Management, forecasts continued high inflows in Europe in 2023, in line with the average of previous years. Thanks to the popularity of ESG and thematic strategies, inflows are expected to exceed €100 billion this year.
"ETFs and index funds managed to hold their own in a challenging year thanks to the strength of their sustainable approaches and 2023 looks promising in terms of capital inflows. In Europe, we are growing our client base thanks to the growth drivers of private banking and wealth management. In order to help educate and provide greater transparency to investors, we have joined forces with Quantalys Harvest Group to democratize the use of ETFs among as many investors as possible.Sol Hurtado de Mendoza, managing director of BNP Paribas Asset Management for Spain and Portugal.
By Alexis Bienvenu
By Duncan Lamont