BlackRock loses market share in Asia ETFs

Asia's biggest ETF provider, BlackRock, sees net outflows while Nomura sees a pick up in business.

BlackRock has confirmed it witnessed outflows of more than US $4.3 billion from its Asia Pacific exchange traded products in the year to the end of October.

In its Global ETP Landscape report, the world’s largest fund manager assessed that its market share was down by 2.9% from the start of the year.

The largest beneficiary appears to be Nomura Group, which has seen inflows of $20.6 billion into its funds since the beginning of the year.

Nomura has seen a rise in market share of 5.1% since the start of the year, according to the BlackRock report.

It comes as the number of Asia Pacific exchange traded products has grown to 845 from just 12 back in 2001.

Nomura remains the market leader in the region with assets under management of $64.1 billion ahead of Nikko Asset Management ($25.7 billion) and Daiwa Securities Group ($24.7 billion).

According to the BlackRock report, emerging markets ETPs – which had witnessed four months of outflows between June and September – saw inflows of $4.6 billion in October.

While China and South Korean equity funds saw inflows, Japan equity funds had outflows of $0.8 billion as a result of “local” investors reacting to the Bank of Japan’s commitment to a 2% inflation target.