Thu, Jul 24, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

EDHEC-Risk’s annual European ETF Survey confirms satisfaction levels and investor approval of ESMA guidelines

Thursday, March 28, 2013
Opalesque Industry Update - EDHEC-Risk Institute announces the results of the EDHEC European ETF Survey 2012, which represents a comprehensive survey of 212 European ETF investors. The survey was conducted as part of the Amundi ETF research chair at EDHEC-Risk Institute on “Core-Satellite and ETF Investment.”

Among the key findings of the 2012 survey:

    • ETFs remain the favourite choice of investors for passive investment, in spite of the controversies surrounding the use of ETFs in 2011/12. Satisfaction levels remain high (equity ETF satisfaction rates have been consistently in the region of 90%), and there has been an increase in the use of ETFs for corporate bonds, infrastructure and real estate.
    • Demand for innovation is high in different asset categories, with 49% of respondents seeking development of emerging market equity ETFs, and there is also demand for new forms of indices, such as ‘smart beta’ ETFs, which seek to generate superior risk-adjusted returns compared to standard market-capitalisation-based equity indices.
    • The great majority of European investors think that ETFs should remain as beta-producing products (81% of respondents). However, 17% of respondents were of the opinion that ETFs should become actively managed, which is an increase from just 11% in 2011.
    • In July 2012, ESMA tackled the issue of investor protection from a number of different standpoints, including guidelines stipulating increased disclosure for index-tracking UCITS, increased clarity with regard to use of ETF identifiers, increased disclosure for actively-managed UCITS ETFs, management of collateral for OTC derivative transactions and guidelines for indices tracked by ETFs. These recommendations have been warmly welcomed by investors, with 77% agreeing that the guidelines have achieved their stated aim of improving investor protection.
    • On the subject of revenues from securities lending, support for the ESMA recommendations is even stronger. Investors are overwhelmingly in favour of the requirement to return securities lending revenue net of costs to the ETF investor, with 84% of respondents in agreement.
    • The ESMA guidelines have been informative and are setting standards in the right direction for investors in insisting on the transparency of indices globally. This overall issue of index transparency has been very positively viewed by investors.

    Commenting on the results of the survey, Valérie Baudson, Managing Director, Amundi ETF, said, “Despite the growing maturity of the ETF market, this year’s survey has shown again that the level of satisfaction towards ETFs remains extremely high and that the vast majority of investors plan to increase their usage. The positive changes in investor perception regarding risks and transparency are significant developments for the industry.”

    Professor Noël Amenc, Director of EDHEC-Risk Institute, added, “There is no doubt that the ETF market has evolved considerably in the past year, with a particular focus on the developing regulatory framework. Investors have sent an important message on the need for transparency to both regulators and product providers.”

    A copy of the EDHEC-Risk Institute survey can be found here: EDHEC-Risk European ETF Survey 2012

    Press release

    amundietf.com

    www.edhec-risk.com

    Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  3. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  4. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  5. Opalesque Roundtable: European family offices struggle to retain their investments in offshore hedge funds[more]

    Komfie Manalo, Opalesque Asia: The European Union’s Alternative Investment Fund Managers Directive (AIFMD) will constrain investment opportunities amidst concern a number of U.S. fund managers will stop marketing their products in the European Union under the new rule, said Valentin Bohländer fro