Marc Jocum

The Australian Exchange-Traded Fund (ETF) market grew 37.3% over the past year to $206.2 billion across 380 products, according to the Global X ETFs (Global X) Australia ETF Landscape report.

Growth was driven by more than $21.4 billion in net inflows, positive market movements, and the conversion of numerous unlisted active funds into active ETFs.

Product and Investment Strategist, Marc Jocum said, “It’s the strongest start ever for the Australian ETF market. In fact, we could surpass the calendar year record of $23.6 billion set in 2021, and potentially reach an industry valuation of $1 trillion by 2030[1] if this momentum continues.”

“It took nearly 20 years to reach $100 billion, but the next $100 billion was achieved in just over three years. Today, the Australian ETF market is growing at a faster rate than the US and has quadrupled its share in the Australian funds market over the past six years.”

Global shares ETFs were the year’s most popular asset class as Australian investors shifted to a ‘risk on’ position. Approximately $6 billion has been allocated to this category in 2024, representing 55% of the total market net flows. In 2023, bond ETFs were one of the most popular asset classes, capturing 37% of annual net flows.

“Artificial intelligence, regional pockets of investor interest, and fixed income are the three main trends which we expect will accelerate into the second half of 2024,” Jocum said.

Global X expects investment vehicles which are generally lower cost, like ETFs, will continue to steal market share over the next decade at the expense of traditional managed funds. Still, the market is in its infancy, with ETFs accounting for just under 5% of the total Australian funds market.

Head of Sales, Manny Damianakis said the Global X Australian ETF Landscape report has been a cornerstone for clients for more than eight years, aiming to empower investors to make informed decisions. Global X is committed to providing clients with intelligent solutions supported by industry-leading research.

“Our unique combination of international resources paired with local expertise allows us to explore innovative opportunities across thematic, income, commodity, digital assets and core solutions. Our expanding range of innovation-led ETFs reflects our investor-first philosophy of delivering the highest quality products to Australian investors,” Damianakis said.

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Notes:
[1] Global X, ASX and Cboe
[2] Assets under management as at May 2024, Global X
[3] Assets under management as at March 2024, Mirae Asset Global Investments
[4] Assets under management as at June 2024, Mirae Asset Global Investments

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The ‘Recommended’ rating reflects strong conviction in BANK’s structure and returns, making it an apt choice for investors seeking diversified exposure to Australian bank credit, high yields, and steady income amid rising interest rates. According to Lonsec’s report, the firm expressed confidence in the fund’s ability to generate risk-adjusted returns and deemed it an appropriate entry point to this asset class.

BANK provides investors with an efficient means to access a blend of Australian Bank Senior, Hybrid, and Subordinated investment-grade bonds. Tracking the performance of the Solactive Australian Bank Credit Index, it is currently the only passively managed ETF listed in Australia that offers this strategy. The fund invests in assets offering a higher yield relative to cash, term deposits, and traditional bonds for an elevated degree of risk, and aims to provide monthly distributions to deliver regular income to investors.

Manny Damianakis, Head of Sales at Global X, said the ‘Recommended’ rating supports the firm’s conviction in the strategy and anticipates it will attract new investors seeking to generate attractive yields from Australian banks.

“Recently, fixed income ETFs have captured significant net flows in the Australian market, with a majority portion of that directed towards Australian fixed income ETFs. This trend underscores how rising interest rates have influenced local investor sentiment, prompting an investor shift towards reducing portfolio duration while seeking attractive yields,” Damianakis said.

“BANK offers exposure to the broader capital stack of Australia’s banks in one diversified solution, providing investors with a well-managed, high-performing fund that stands out in the market.

“We are pleased to receive Lonsec’s recommended rating for this product, which reflects our commitment to delivering high-quality and relevant investment solutions that meet investors’ needs amid evolving market conditions.”

BANK is the latest addition to the Global X’s suite of 40 listed ETFs across thematics, commodities, income, digital assets, and more. The company now manages more than $7.5 billion in assets under management in Australia.[1]

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Paul Ramsay

Franklin Templeton Australia has announced the appointment of Paul Ramsay to the position of Retail Key Account Manager, effective 16 July 2019.

Based in Franklin Templeton’s Melbourne office, Mr. Ramsay will focus on building and maintaining relationships in the Australian retail advice market, as the company continues to grow its coverage in this segment of the market.

He reports to Manuel (Manny) Damianakis, Head of Retail for the Australian market.

Mr. Ramsay’s most recent role was as National Manager, Strategy – Investments at Australian Unity Wealth. During his time at Australian Unity Wealth, Mr. Ramsay also held the titles of Senior Investment Specialist and Head of Research Relationships.

Prior to Australian Unity Wealth, Mr Ramsay worked at National Australia Bank and MLC for 10 years.

“As a highly experienced strategic funds management professional, Paul brings industry expertise and extensive networks to the firm, and we are excited to have him join the team”, said Manny Damianakis.

“Paul’s appointment strengthens Franklin Templeton’s presence in the Australian retail advice market as we continue to leverage our broad range of investment capabilities, and position for future growth.”

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