Global assets in exchange-traded funds and exchange-traded products hit a record high at the end of last month, according to data from ETFGI’s April 2016 global ETF and ETP industry insights report. Assets reached $3.137tn at the end of April this year. Records were also hit across different regions; in United States ETFs/ETPs listed saw assets reach $2.217tn, in Canada $77.42bn, in Europe $533.34bn, in Japan $145.93bn, and in Asia Pacific ex-Japan $125.21bn. April marked the 27th consecutive month of inflows into global ETFs/ETPs. Last month saw fixed income ETFs/ETPs gather the largest net inflows with $7.73bn, followed by equity ETFs/ETPs with $2.39bn, while commodity ETFs/ETPs experienced net outflows with $136m.

UBS has launched three new exchange traded funds offering exposure to commodities and emerging market bonds. The two EM bond ETFs incorporate a currency hedge. The UBS ETFs plc – CMCI ex-Agriculture SF UCITS ETF and the UBS ETF (LU) Barclays USD Emerging Markets Sovereign hedged GBP UCITS ETF are listed on the London Stock Exchange today, while the UBS ETF (LU) Barclays USD Emerging Markets Sovereign hedged EUR UCITS ETF is listed on Xetra and in Italy and The Netherlands. Andrew Walsh, Head of UBS ETFs Sales UK & Ireland, said: “The new commodities ETF tracks a more advanced 2nd generation underlying index and offers investors an opportunity to access broad commodities.”

ETF provider Amundi launches a new currency hedged share class on its corporate bond ETF adding to its range of funds. The USD-denominated Floating Rate Notes ETF tracks the Markit iBoxx USD Liquid FRN Investment Grade Corporates 100 index. The index gives exposure to the USD-denominated investment grade Floating Rate Notes (FRN) market via holdings of between 40 and 100 highly liquid USD denominated FRNs, issued by corporates from developed countries. The launch comes in response to investor demand for exposure combining a hedge against both potential interest rate hikes and currency volatility. Fannie Wurtz, Managing Director of Amundi ETF, Indexing & Smart Beta, said: “This new investment tool meets investors’ needs to capture potential yield in USD-denominated floating rate notes, while at the same time limiting the impact of USD/EUR exchange rate volatility.”

The first two months of the year saw total net inflows to Japan-listed exchange traded funds and exchange traded products hit a record $9.24bn, according to data from consultancy ETFGI. However, while these domestically listed ETFs/ETPs have gathered record flows, ETFs providing exposure to Japan itself have fared less well with foreign investors withdrawing money. Japan presents a mixed bag for investors with the Nikkei 225 (the most widely quoted average of Japanese equities) performing badly. ETF Strategy takes a closer look at the investment case for Japan and which ETFs are available in the first of this two part series.

The S&P Goldman Sachs Commodity Index (GSCI) recorded its best performing month for a year and the second best April on record. The index is up 15.5% since 29th February 2016, marking the biggest consecutive two months in almost seven years since May-June 2009 when it gained 20.4%. According to data from S&P Dow Jones Indices, the Dow Jones Commodity Index and S&P GSCI total return indices also saw positive performances with gains of 9.1% and 10.1%, respectively. However, the rally could be short lived, proving hard to sustain as a result of poor fundamentals underpinning the commodities.

Global index provider FTSE Russell has launched a new index reducing investor exposure to fossil fuel companies while increasing exposure to companies with green revenues. The FTSE Divest-Invest Developed 200 index is launched on the back of the provider’s new LCE green investment data model. The new index is made up from the largest 200 companies in the FTSE Developed All-Cap Index. Constituents that are not eligible for inclusion are categorised under Industrial Classification Benchmark (ICB) sectors and sub-sectors – they include, oil and gas producers, oil equipment services and distribution providers, and coal and general mining.

Secure Wealth Management was set up seven years ago by managing director James Dougall with the initial aim of being a full service wealth advisory business for the Asia-Pacific region. The company now services investors globally, excluding the US. Originally from a risk management background he saw an opening in the market post-Lehman for transparent investment with ETFs. He was subsequently joined by Mark Browne (pictured), who with the rest of the team, helped take the business into the global B2B discretionary space for private clients and institutional investors. It now offers five managed portfolios made up from ETFs and has assets under management of $150m. ETF Strategy talks to Mark Browne about why they use ETFs, their investment strategy and how they pick ETFs.

China has launched a new gold benchmark on the Shanghai Gold Exchange (SGE) this week in a move that could see it have control over pricing the yellow metal. The launch is intended to provide a tradable and reliable RMB-denominated Gold Benchmark Price for the gold market. China is the largest producer and consumer of gold in the world. SGE has ranked as the world’s largest physical gold exchange for nine consecutive years. Deputy Governor of the People’s Bank of China, Pan Gongsheng commented on Tuesday that the launch of the benchmark was a key initiative of innovation and opening-up of China’s financial market leaning in the global economic integration.

When the Retail Distribution Review (RDR) came into force at the beginning of 2013 the exchange traded fund market expected to see a surge in uptake, but advisers were hesitant to use ETFs despite their low cost and liquid nature. That was until recently. Increasingly, there are signs that advisers are beginning to embrace ETFs through direct allocation and via outsourced model portfolios, and many market watchers believe their use is set to boom. If this is to happen, the role of adviser platforms will be key.

Canada-based Mackenzie Financial Corporation (Mackenzie Investments) has entered the exchange-traded fund space with the launch of four active fixed income ETFs on the Toronto Stock Exchange today. The ETFs are launched in a bid to help investors build their portfolios and are; the Mackenzie Core Plus Global Fixed Income ETF (TSX:MGB), the Mackenzie Unconstrained Bond ETF (TSX:MUB), the Mackenzie Floating Rate Income ETF (TSX:MFT) and the Mackenzie Core Plus Canadian Fixed Income ETF (TSX:MKB). While each ETF uses a different approach to generate stable risk-adjusted returns for investors in the fixed income markets, the layer of active management means investors benefit from the fund management expertise at Mackenzie Investments.