GLOBAL - Assets are sticky at Lyxor Asset Management where inflows into ETFs that are usually tempor...
GLOBAL - Assets are sticky at Lyxor Asset Management where inflows into ETFs that are usually temporary seem to have become permanent, said Isabelle Bourcier, global head of Lyxor ETFs.
Investors appear to be riding out the uncertainty in the markets by leaving their assets in exchange traded fund vehicles, she said.
ETF's typically see heavy inflows over the summer months of June and July as well as during the December holidays. For some managers, this is a way to continue to get pure exposure to their indexes when many are away on holiday or have other year-end managerial duties, she said.
Investors who jump in during the summer typically pull the assets in September as they return to actively managing their securities.
Bourcier said: "Usually we see outflows again...This is not something we saw in September 2008 because of the uncertainty in the markets."
Bourcier believes investors are taking a "wait-and-see" approach to pulling out of ETF's, and expects the growth Lyxor saw in December 2008 to stick.
Assets into Lyxor Asset Management's FTSE 100 ETF, for example, surged in December finishing the year with £146.5m (US$224m), 84% higher than the previous month.
Bourcier said: "We don't expect to see redemptions."
Because investors work through a broker, it is impossible for Lyxor officials to know exactly where the new assets are coming from- whether from institutional or retail markets- but institutional investors have historically been the heaviest users, she said.
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation