Fri, Nov 24, 2017
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. Tourbillon Capital, a $3.4bn hedge fund that's been sounding the alarm about 'frothy speculation,' is suffering big losses[more]

    From Businessinsider.com: Tourbillon Capital, a $3.4 billion hedge fund firm led by Jason Karp, is suffering. The firm's flagship Global Master fund is down 3.5% for the first 17 days of November, bringing performance for the year to November 17 to a loss of 10.6%, according to a note to investors s

  2. Fund Profile - The Tiger of Silicon Valley: Glen Kacher's sizzling hedge fund[more]

    From Forbes.com: When you live and work in a town where the median home costs $2.7 million and hobnob with the executives of billionaire factories like Facebook and Tesla, it's easy to see why you might think technology stocks are invincible. So far in 2017, the Nasdaq Composite index has gained 25%

  3. Launches - Asset manager launches Europe's first bitcoin mutual fund, Prime Capital Aviation Debt Fund enables aviation debt investments for institutional investors[more]

    Asset manager launches Europe's first bitcoin mutual fund From Coindesk.com: A French asset manager has announced the launch of Europe's first mutual fund centered around bitcoin. Announced today, Tobam's alternative investment fund perhaps represents the latest bid to attract institutio

  4. Legal - Consumers say hedge fund financed illegal tribal lending, New York's highest court permits shareholder of a Cayman-incorporated company to bypass Cayman law and bring derivative action in New York[more]

    Consumers say hedge fund financed illegal tribal lending From Law360.com: Vermont residents on Tuesday hit a hedge fund with a proposed class action in federal court alleging it helped concoct a sham tribal payday lending scheme meant to skirt laws preventing companies from charging cons

  5. Investing - Tech still hedge funds' sweetheart sector: Goldman Sachs, Hedge funds haven't been this leveraged to buy stocks since the bull market began, Top financials hedge fund details short bet against Morningstar, Fund CRC presents an offer for Carige's consumer credit unit, Hedge funds sell shares in Altice USA after difficult quarter[more]

    Tech still hedge funds' sweetheart sector: Goldman Sachs From Reuters.com: Tech stocks remain the largest net sector exposure for equity hedge funds, which are set to deliver their strongest returns since 2013, Goldman Sachs said on Wednesday in a note on the industry's most and l