Sun, Feb 25, 2018
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. Opalesque Exclusive: Global Sigma captures February's long-vol trade[more]

    Bailey McCann, Opalesque New York for New Managers: Florida-based Global Sigma rode February's volatility to new highs. The firm's AGSF strategy is up +2.8 percent through February 16 and +4.2 percent YTD a

  2. Art & Motion launches collectible car alternative investment vehicle[more]

    Komfie Manalo, Opalesque Asia: Luxembourg-based Art & Motion has launched a new investment vehicle dedicated to vintage cars and exceptional high-quality vehicles as this collectible market has grown exponentially the turn of the centu

  3. Investing - Hedge funds turn short on tech just as stock rally takes off, After biggest short, speculators slash bearish US bond bets as supply deluge looms[more]

    Hedge funds turn short on tech just as stock rally takes off From Newsmax.com: A key group of investors has just missed out on the biggest tech-stock rally since 2014. Hedge funds and other large speculators turned net short on Nasdaq 100 Index futures for the first time in 21 months, ac

  4. Low volatility funds fail to protect investors[more]

    From FT.com: A number of exchange traded funds (ETFs) designed to protect investors from sharp stock market gyrations lost more money than mainstream US stocks during a sell-off this month, underperforming in precisely the conditions in which they were meant to thrive. Low volatility ETFs, lau

  5. Legal - Hedge funds fight to save M&A arbitrage strategy, Fannie Mae and Freddie Mac ruling blow to hedge funds[more]

    Hedge funds fight to save M&A arbitrage strategy From FT.com: Hedge funds which use the US courts to wring higher prices for merger and acquisition deals are fighting to save the lucrative investment strategy, after a Delaware court ruling that threatens to shut it down. Verition Partner