Assets invested in exchange-traded funds and exchange-traded products listed in Japan hit a record of $148bn at the end of June, according to independent ETF consultancy ETFGI.

Assets invested in ETFs listed in Japan hit a record high at the end of June

The record high was driven by increased volatility in June as a result of the UK’s vote over whether to leave the European Union.

Deborah Fuhr, managing partner at ETFGI, said: “Markets and investors around the world were engulfed in the chaos following what many saw as the unexpected result of the UK’s June 23rd vote. Volatility was up significantly during the month. The S&P 500 index was up just 0.3%. Emerging markets were up 3.94% while developed markets ex-US declined 2.87%.There is still uncertainty in the markets due to questions on when and how Brexit changes will be implement and the many changes happening in UK political parties”

YTD Japan has seen net inflows of $16.50bn, which is made up of equity ETFs/ETPs which saw the largest flows YTD at $14.24bn, followed by fixed income at $41m. These were offset by outflows from commodity ETFs/ETPs of $21m.

The Japanese ETF/ETP industry had 177 ETFs/ETPs, with 232 listings, assets of $148bn, from 21 providers listed on two exchanges at the end of June.

YTD, Nomura AM gathered the largest net ETF/ETP inflows with $7.47bn, followed by Nikko AM with $3.43bn and Daiwa with $2.69bn.

In the rest of the Asia Pacific region net new assets hit $3bn in June. However, the first six months of the year saw net inflows hit a record high of $11.06bn. This was made up of equity ETFs/ETPs gathering $4.75bn, fixed income ETFs/ETPs with a record high of $2.62bn flowing in, and commodity ETFs/ETPs with a record $638m.

At the end of June 2016, the Asia Pacific ex-Japan ETF/ETP industry had 873 ETFs/ETPs, with 1,023 listings, assets of $123bn, from 116 providers listed on 18 exchanges in 14 countries. In the first six months of the year, CSOP/China Southern gathered the largest net ETF/ETP inflows with $2.47bn, followed by Yuanta with $1.44bn and SPDR ETFs with $1.08bn in net inflows.