An impressive 43.7% (Note 1) growth in AUM recorded in 2008
HONG KONG, April 2 /PRNewswire-Asia/ -- Barclays Global Investors ("BGI"), one of the world's largest asset managers and the world leader in exchange traded funds (ETFs)(Note 2), experienced encouraging growth in its iShares family of ETFs in both Asia ex-Japan and the global market in 2008.
Despite market volatility, assets under management (AUM) for iShares ETFs in the Asia ex-Japan region reached US$4.3 billion as at Dec 31, 2008, an impressive 43.7% increase in AUM over the previous year (Note 1). On a global basis, iShares had a record year and realized net inflows of US$89 billion in new ETF assets for 2008, compared to US$70 billion the previous year. (Note 3)
"Investors around the world, including those in Asia, are clearly embracing ETFs," said Nick Good, CEO of iShares Asia-Pacific. "The current volatile market has made investors more concerned with knowing exactly what they own and with investing in products which they can trade easily, whenever they want. iShares ETFs have therefore become a preferred investment vehicle for managing risk."
In 2008, Hong Kong's ETF market became the largest in the Asia-Pacific region in terms of turnover value (Note 4). The most actively traded ETF in Hong Kong in 2008 was the iShares FTSE/Xinhua A50 China Tracker (2823) which constituted approximately 60% of Hong Kong's total ETF market turnover value (Note 4).
BGI's ETF Industry Preview Year End 2008 reports that the industry's average daily trading volume worldwide increased by 32.5% to US$80.4 billion in 2008. The global ETF growth phenomenon is set to continue, with AUM in the ETF sector expected to grow from US$711 billion at end of 2008 to US$1 trillion in 2009 and US$2 trillion in 2011.
Nick Good concluded, "Investors in Asia are increasingly aware of the benefits of ETFs. With transparency and diversification expected to be strong themes in 2009, iShares will continue to provide products to meet investors' needs in the region. "
Note 1: This figure is calculated based on BGI's 4 authorized ETF's in
Hong Kong and Singapore in Asia ex-Japan region only. Source: Barclays
Global Investors, Bloomberg as at Dec 31, 2008.
Note 2: Source: In terms of asset under management as at Dec 31, 2008,
Barclays Global Investors, Bloomberg.
Note 3: Source: Press Release entitled "iShares ETFs Experience Strong
2008 Inflows" released by Barclays Global Investors on Feb 2, 2009.
Note 4: Source: "Hong Kong's ETF Market Leads Asia-Pacific region in
Turnover", Exchange, January 2009
Notes to Editors
About Barclays Global Investors
Barclays Global Investors is one of the world's largest asset managers and a leading global provider of investment management products and services with more than 3,000 institutional clients and approximately $1.5 trillion of assets under management as of December 31, 2008. BGI transformed the investment industry by creating the first index strategy in 1971 and the first quantitative active strategy in 1979. BGI is the global product leader in exchange traded funds (iShares(TM) exchange traded funds) with over 360 funds for institutions and individuals available globally.
About iShares ETFs
iShares ETFs are index funds managed by BGI that are bought and sold like ordinary stocks on a stock exchange. iShares ETFs are attractive to many individual and institutional investors and financial intermediaries because of their relatively low cost and trading flexibility. Investors can purchase and sell units through any brokerage account. ETFs generally can be used to achieve many investment strategies:
-- for buy and hold investing
-- for active traders who wish to take advantage of market movements
-- for investors wishing to hedge the market
-- to enhance returns on cash deposits by equitising
-- as an alternative to futures and other institutional investment tools
Disclaimer
This press release has been issued in Hong Kong by Barclays Global Investors North Asia Limited and has not been reviewed by the SFC. This document is for informational purposes and does not constitute an offer or solicitation to purchase or sell units in any iShares funds, nor shall any units be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. Past performance is not indicative of future results. Certain information in this document may be taken from external sources, which we consider reliable. We do not represent that this information is accurate or complete and should not be relied upon as such. Any opinions contained herein, which reflect our judgment at this date, are subject to change. No part of this document may be reproduced in any manner or distributed without the prior written permission of BGI.
iShares is a registered mark of Barclays Global Investors N.A.
(C) 2009 Barclays Global Investor
IMPORTANT: Investment involves risks, including loss of principal. Before deciding to invest, investors should read the prospectus carefully including the investment objective and risk factors. The prospectus is available at http://www.ishares.com.hk . An investment in the Fund may not be suitable for everyone and investors are advised to consider their own investment objectives and circumstances in determining the suitability of an investment in this Fund. If you are in any doubt, you should consult your stockbroker, bank manager, solicitor, accountant or other financial adviser. Investors should note:
-- the Fund aims to provide investment results that, before fees and
expenses, closely correspond to the performance of the FTSE/Xinhua A50
Index;
-- the Fund does not invest directly in China A shares but instead gains
access to the A share market by investing solely into China A-share
Access Products (CAAPs), which are derivative instruments linked to an
A share or the index issued by third parties ("CAAP Issuers"). A CAAP
represents only an obligation of each CAAP Issuer to provide the
economic performance equivalent to holding the underlying A shares;
-- the Fund is subject to counterparty risk associated with each CAAP
Issuer and may suffer losses potentially equal to the full value of
the CAAPs issued by a CAAP Issuer if such CAAP Issuer fails to perform
its obligations under the CAAPs. Any loss would result in a reduction
in the net asset value of the Fund and impair the ability of the Fund
to achieve its investment objective to track the relevant index. In
the event of any default by a CAAP Issuer dealing may be suspended and
the Fund may not continue to trade;
-- investment in emerging market countries may involve heightened risks
such as increased volatility and lower trading volume, and may be
subject to a greater risk of loss than investments in a developed
country; and
-- stock exchange prices are based on secondary market trading factors
and may deviate significantly from the net asset value of the Fund.
Media Contacts
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