Amundi ETF & Indexing Research Chair with Edhec Risk Institute Results of The EDHEC European ETF Survey 2014

Transcription

1 Amundi ETF & Indexing Research Chair with Edhec Risk Institute Results of The EDHEC European ETF Survey 2014 Les Echos Forum de l Asset Management 15 April 2015

2 Introduction Amundi ETF & Indexing is pleased to share with you the results of the EDHEC European ETF Survey 2014, a comprehensive survey of 222 European ETF investors. This survey was conducted as part of the Amundi ETF & Indexing research chair at EDHEC-Risk Institute on Core-Satellite and ETF Investment. The EDHEC European survey 2014 was conducted from 2nd October 2014 to 19th November 2014 with an online questionnaire and was diffused to European professionals in the asset management industry. The responses were collected from 222 respondents, that together have at least 3,350 billions of AUM. Respondents were from 27 European countries. Almost half of respondents (47%) were from UK, Switzerland and France, the other 53% being distributed between 24 European countries. 78% of respondents institution main activity is institutional investment and about 19% of respondents belong to the private wealth management industry. 2

3 High satisfaction with ETFs Satisfaction with standard ETFs has remained at high levels. This exhibit indicates the percentages of respondents that are satisfied with ETFs or ETF-like products for different asset classes over time. 3

4 Perspective of further increase in the use of ETFs It appears that ETFs investors are still looking to increase (about 60% of them since 2011) or at least to maintain their use of ETFs and have a more favourable outlook of their use of ETFs than of their use of alternative indexing products. This exhibit indicates the future potential to change each of the mentioned products by investors over time. 4

5 Motivations for further increase in the use of ETFs 64% of respondents declare that increasing the use of ETFs will serve as a substitute to the use of active managers; 42% of them will substitute ETFs to the use of other index products. This replacement will first of all be motivated by costs for a vast majority of respondents (70%), but also by performance (45%), while liquidity and transparency are the last criteria given (38% and 37% of respondents, respectively). 5

6 Usage of ETFs by investors It appears that investment in ETFs is mainly associated with a long-term exposure to broad market indices. This exhibit indicates the percentages of respondents frequently using ETFs for each of the mentioned purposes over time. 6

7 The success of passive smart beta products A quarter of respondents (25%) already use products tracking smart beta indices; and two-fifth of them (40%) consider investing in such products in the near future. This exhibit indicates the percentages of respondents that reported to use products tracking smart beta indices. 7

8 Motivations for investment in smart beta ETFs This exhibit indicates the percentages of respondents that agree or strongly agree with the statements about smart beta indices. 71% of respondents think that smart beta indices provide significant potential to outperform capweighted indices in the long term. 81% of respondents think that they avoid cap-weighted indices being concentrated in very few stocks or sectors. 82% of respondents agree that smart beta indices allow factor risk premia, such as value and small cap to be captured. 88% agree that smart beta indices require full transparency on methodology and risk analytics. 8

9 Conclusion This survey shows that there is still a bright future for further developments of ETFs (55% of respondents plan to increase their use of ETFs). The area of most interest to respondents in terms of product developments appears to be innovations in traditional asset classes, with demands on ETFS based on smart beta equity (37% of respondents), factor investing (31% of respondents), equity style (29% of respondents) and smart beta bond (27% of respondents). There is less perspective of development in new asset classes (real estate, infrastructure, hedge funds), not necessarily suited to these supports. 9

10 Appendix Country distribution of respondents Function of respondents Main activity of respondents Asset under management (EUR) All percentages are based on the 222 replies to the survey. 10

11 Disclaimer This material is solely for the attention of institutional, professional*, qualified** or sophisticated clients acting solely and exclusively on their own account and is not to be distributed to the general public, private customers or retail investors in any jurisdiction whatsoever. Issued by Amundi, a French limited company with capital of 596,262,615 euros, approved by the French financial market authorities (the Autorité des marchés financiers or «AMF»), as an investment management company, under the number GP , whose registered office is located 90 boulevard Pasteur, Paris France, under the trade registration number RCS Paris. The AMUNDI ETF funds described in this presentation (the «AMUNDI ETF Funds») are fonds communs de placement, registered in France with the AMF, with the exception of two sub-funds, an Irish umbrella fund, authorised by the Central Bank of Ireland. The AMUNDI ETF Funds described in this presentation may not be authorized for distribution in your country. Persons who are subject to any restrictions, such as US persons or citizens and/or residents having their place of residence in countries from where they are not allowed to access this information, are not permitted to access information contained herein. It is the investor s responsibility to ensure that he is authorized to invest in the Amundi ETF Funds mentioned in the presentation. The prospectus and Key investor information document («KIID») must be provided to investors before any subscription is made. Complete documentation of the AMUNDI ETF Funds (the prospectus, KIID, annual report, periodic documents) is available upon request from Amundi and on the internet website amundietf.com. Additional information is available upon request. Any offer or solicitation of an investment in the AMUNDI ETF Funds now or in the future may be made only by delivery of the AMUNDI ETF Funds prospectus and KIID. This material is of a commercial and not of a regulatory nature. It is provided for information purposes only and does not constitute a recommendation, a solicitation, an offer, a request for proposal, advice or an invitation to purchase or sell any fund, Sicav, or sub-fund and should not in any case be interpreted as such. Prior to any investment in an AMUNDI ETF Fund, investors should check if they are authorized for distribution/advertising in their country. In no circumstances will Amundi be held liable for the consequences, whether direct or indirect, whether financial or other, of any decision made on the basis of information contained in the Document. The AMUNDI ETF Funds have no guarantee in capital. Share or unit values are subject to market fluctuations, the investments made may therefore vary downward as well as upward. Investors may not get back the amount they originally invested. Investors are reminded that past performance is not a guarantee or a reliable indicator for future returns. The amount to be reasonably invested in the Funds depends on the investor's personal circumstances. To determine this, investors must take into account their personal wealth, personal assets, current and future needs, as well as their risk tolerance profile, whether this favours high or low-risk investments. Investors are advised to seek advice from their usual advisors (financial, accountant, legal and/or taxation) before purchasing any share or units. The aim of the presentation is to inform investors upon the AMUNDI ETF Funds characteristics, however, the exactness, exhaustiveness or relevance of the information provided is not guaranteed even though the information was derived from sources that are reputed to be reliable by Amundi. It is inevitably partial, provided based on market data stated at a particular moment and is subject to change. It is not permitted to copy, modify, translate or distribute the presentation to any other persons other than those mentioned above without the prior approval of Amundi. The information contained in this material is deemed accurate, as of March 2015, and may be modified without prior notice. *as defined in Directive 2004/39/EC of the European Parliament and the Council dated 21 April 2004 on markets in financial instruments. ** within the meaning of your local jurisdiction. Note that not all ETFs of the Amundi ETF range have been approved for public distribution in all countries. Dodd Franck Act disclaimer This document is not intended for citizens or residents of the United States of America or to any «U.S. Person», as this term is defined in SEC Regulation S under the U.S. Securities Act of

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