Global Assets Under Management
- The total global AUM of Short & Leveraged (S&L) ETPs at the end of March 2014 is a record $62.1 billion, an increase of 1% from the end of February and an increase of 6.7% from the end of December 2013.
- 48% of AUM is held in short products with leverage factors ranging between -1x to -3x. However the leverage factor with the most assets is +2x, with 39% of AUM. 52% of AUM is held in long products with leverage factors ranging between +1.5x to +3x.
- In terms of S&L asset allocation, equity ETPs are the most popular with 71% of AUM, followed by debt with 17% and commodities with 7%. The remaining 5% is allocated equally between currency and alternative ETPs.
- The largest individual S&L ETPs are short US treasuries and leveraged US equities.
Short & Leverage Equities: Global
- Currently there is $43.8 billion of AUM held in S&L equity ETPs of which 66% is held in leveraged (long) ETPs.
- S&L equity ETPs have seen $4.1 billion of inflows in March, a marked reversal from the $2.7 billion of outflows in February. Leading the inflows were US equity ETPs with $3.6 billion, $3.3 billion of which went into long ETPs.
- AUM in S&L US equity ETPs as at the end of March was $18.4 billion, a 23% increase from February.
Short & Leverage Equities: Europe
- Currently there is $6 billion of AUM held in S&L equity ETPs tracking Europe (as a region) or European countries of which 59% is held in leveraged ETPs and 41% is held in short ETPs.
- European S&L equity ETPs recorded inflows of $205 million, equally split between long and short ETPs. The inflows are a sharp reversal from the $47 million of outflows in February.
- S&L investors’ repositioning within European country-focused equity ETPs was mixed. Flows in Italian equity ETPs were bearish, with inflows of $56 million into short ETPs and $17 million of outflows from long ETPs. In contrast, flows in French and German equity ETPs were bullish, with inflows into long ETPs of $52 million and $39 million, respectively and outflows from short ETPs of $23 million and $18 million, respectively.
- S&L investors’ repositioning within European region-focused equity ETPs was bearish, with $69 million of inflows into short ETPs and $24 million of outflows from long ETPs.
- Underpinned by bullish conviction Russian equity ETPs stood out as recording the largest inflows of $64 million within Europe. Amidst tensions in Crimea driving a sell-off in Russian equities, the contrarian stance of S&L investors on Russia was evident in the $53 million of inflows into long ETPs and $11 million outflows from short ETPs.
Short & Leverage Debt: Global
- Currently there is $10.6 billion of AUM in S&L debt ETPs, a decrease of 8% (from $11.4 billion of AUM in February).
- Of the $10.6 billion of AUM in S&L debt ETPs, $9.4 billion is government debt and $844 million is corporate debt and preferred stock. Of the remaining AUM, $351 million is held as a blend of government and corporate debt, and $25million is held as alternative debt.
- Globally, debt ETPs saw a total of $2.8 billion of outflows, $2.7 billion of which was from US debt. The US outflows are a result of S&L investors reducing their long positions by $2.9 billion, following a near equal increase in long positions by S&L investors during February.
- As a result of the marked reversal of flows in US debt, S&L investors repositioned themselves with a strong bearish conviction. Globally, 98% of AUM in S&L debt ETPs is now held in short ETPs, up from 77% in February.
Short & Leverage Commodities: Global
- The AUM of S&L commodity ETPs for the end of February is $4.1 billion, a decrease of 1% (from February’s AUM of 4.2 billion). 46% is currently held in long commodity ETPs.
- S&L commodity ETPs are dominated by gold, silver, oil and natural gas, representing 89% of total AUM. Natural gas is the largest commodity ETP with over $1 billion in AUM, followed by silver with $940 million. The 3rd and 4th largest commodity ETPs by AUM is oil with $882 million and gold with $829 million, respectively.
- The $48 million of inflows into long ETPs and $22 million of outflows from short ETPs suggest S&L investors have turned more bullish on silver. Currently 83% of AUM in S&L silver ETPs is comprised of long positions.
- In oil ETPs S&L investors reduced their short positions by $23 million and moderately increased the long positions by $4 million. However, given that 75% of AUM in S&L oil ETPs comprises short positions, positioning in oil of S&L investors at the end of March remains overly bearish.
- Within commodities, S&L investors have become most bearish on natural gas. Although the flows in natural gas ETPs during March were mixed, the $15 million of net inflows into short ETPs resulted in short ETPs now comprising 76% S&L AUM of natural gas, up from 73% in February.
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