250 per cent growth in fixed income ETFs, according to Deutsche Bank
There has been an explosion in fixed income ETF assets under management (AUM) in Europe, with 250% growth in less than two years, of which 44% of growth can be attributed directly to db x-trackers. db x-trackers, Deutsche Bank’s Exchange Traded Fund platform, raised €10bn AUM in fixed income ETFs between June 2007 and February 2009
Since June 2007 the market in fixed income ETFs has seen 250% growth in Europe, as AUM climbed from €9bn to €31.7bn at the end of February 2009.
db x-trackers, Deutsche Bank’s Exchange Traded Fund (ETF) platform, accounted for 44% of fixed income ETF growth in Europe over this period. Since June 2007 db x-trackers have raised AUM of more than €10bn, seeing an average asset accumulation in fixed income ETFs of €500m per month.
Money market ETFs have also enjoyed phenomenal growth since their introduction in Europe by db x-trackers in June 2007 with the Deutsche Bank EONIA (European overnight index average) ETF. The EONIA ETF has accumulated more than €6bn AUM, which represents more than 20% of the European fixed income ETF market.
“db x-trackers have been instrumental in the innovation and growth of the fixed income ETF market in Europe,” says Marco Montanari, head of fixed income ETF structuring at db x-trackers. Since June 2007 more than three quarters of our fixed income ETFs AUM can be directly attributed to our ‘first to market’ products including EONIA, our range of short bond and credit default swap products and our inflation products. The market has responded positively to innovations from db x-trackers and we aim to continue to launch new and relevant products in this space.”
“The success of the money market ETF range has been driven in particular by institutional clients seeking the advantages that these products offer them, namely transparency, flexibility, low costs and a tactical tool box that they can easily access,” Montanari said. Thorsten Michalik, head of db x-trackers says; “At present the majority of the db x-tracker fixed income ETF range is listed on Frankfurt Xetra, and Borsa Italiana, however we have plans to launch a dedicated range of fixed income ETFs for the UK market later this year.”
Despite the growth of assets under management, fixed income ETFs still account for just 30% of the total ETF market in Europe compared to a 48% share of the mutual fund market, suggesting that there is both room and appetite for further growth in this sector.
For further information please contact Polhill Communications on +44 20 7655 0540 or visit www.dbxtrackers.com
About db x-trackers
db x-trackers is Deutsche Bank’s Exchange Traded Funds (ETFs) index tracking solution platform. db x-trackers was launched in January 2007 and is currently the fastest growing ETF provider in Europe. Over EUR 19 billion of assets under management have been raised in two years, making db x-trackers one of the three largest ETF providers in Europe.
db x-trackers offers more than 100 ETFs across asset classes including equity, fixed income, credit, money markets, currencies and commodities; enabling anyone the opportunity to invest in a highly transparent, flexible and efficient way. db x-trackers offer investors the largest range of ETFs on short indices covering equity, bonds and credit indices.
db x-trackers’ ETFs are listed on six different exchanges across Europe and Asia (Borsa Italiana, Frankfurt Xetra, Paris Euronext, London Stock Exchange, Zurich SIX Swiss Exchange and Singapore Exchange SGX) and are supported by multiple market makers. db x-trackers ETFs are domiciled in Luxembourg and comply with UCITS III regulations.
With more than EUR 6 billion assets under management, the db x-trackers EONIA ETF is the single largest ETF in Europe. In the two years since inception the db x-trackers’ fixed income range has become the largest in Europe and has more assets under management than any other ETF platform in Europe.
The db x-trackers SHORT DAX® und DJ EURO STOXX50® Short ETFs were among the best performing funds in Europe during 2008.
More information on db x-trackers can be found on www.dbxtrackers.com . All of the above data was correct as at 28.02.2009.