By Marlène Hassine Konqui, Head of ETF Research and Kristo ... Money Monitor - Nove… · Fixed income ETFs lagging far behind Bad year World for Commodity ETFs YTD net Inflows on

1For professional clients only*

This document is for the exclusive use of investors acting on their own account and categorised either as “eligible counterparties” or “professional clients” within the meaning of markets in financial instruments directive 2004/39/ce.

Informed Investor: Money Monitor November 2018

By Marlène Hassine Konqui, Head of ETF Research and Kristo Durbaku, ETF Research Analyst

€1.8bn-€310m

Commodities still suffering

Smart Beta interest rekindled

Net new assets in the European ETF market rebounded to €4bn in November – well up from the €753m we saw in October. Equities gathered the bulk of the inflows (€2.8bn), after another strong month for US equities (€1.4bn) and further signs of renewed interest in ESG ETFs (€491m) and China equities (€334m). Fixed income ETF inflows doubled, led by developed market government bonds after they enjoyed their best month ever (€1.9bn). Commodities, meanwhile, continued their descent.

Strong rebound for European ETFs

ETF flows climbed to €4bn from €753m

YTD flows now stand at €42.5bn €4bn

What happened last month?

Fixed income flows double

€2.8bn €1.5bn

Equity inflows rebound

Source: Monthly data in EURM from 01/11/2018 to 30/11/2018 Bloomberg, Lyxor. The figures relating to past performances refer to past periods and are not a reliable indicator for future results.Note: This report is based on the data available on 01/12/2018. Asset and flow data may be slightly adjusted as additional data becomes available.



What were the major trends?

Source: Monthly data in EURM from 01/11/2018 to 30/11/2018, Bloomberg, Lyxor. The figures relating to past performances refer to past periods and are not a reliable indicator for future results.

What were the major trends?

Monthly net inflows on European Equity ETFs

Monthly net inflows on European Fixed Income ETFs

Equity inflows rebound

Fixed income flows double €1.5bn

€2.8bn

1,451Developed

Market Equities

1,414 of wh. US Equities

-1,219 of wh. Europe

Equities

271Emerging Market

Equities

1,096Global Equities

1,305 of wh. World Equities

-483of wh. Asia Pacific

Equities

1,891Developed

Market Govies

987of wh. Europe

Govies

229Emerging MarketGovies -342

High Yield

-317Money Market

-211Inflation Linked

158Coprporate

Bonds

680of wh. US

Govies

US equities attracted most of the inflows

Euro government bond flows double

Japan equity flows return to the red

Europe equity inflows stop abruptly

Global equities rebound

US treasury flows remain strong

High yield bond flows turn negative

Inflation-linked bonds suffer more outflows



China comes right into focusChina equity ETF recorded their 3rd best month ever with €334m of inflows in November. This may be the latest sign of a more durable trend, which began in June as shown in Graph 2 below and is unmatched when looking at monthly flows on Chinese equities for the last three years. So, what’s behind it? In our view, the equity investing environment is much more favourable than it was. First, Chinese equities may have bottomed out - given easier financial conditions in the US (see negative correlation

with Chinese equity prices in graph 1), a potential easing of trade tensions and the likelihood of more accommodative measures from the central bank and the Chinese government. Second, growth remains twice as fast as the US even if it is slowing right now – and that slowdown may only be down to more specific, possibly temporary factors anyway. Third, valuations are cheap and this could sustain a recovery after the recent sell-off (MSCI China fell 11.5% in October).

Special focus

Source: Monthly data from 30/11/2015 to 30/11/2018, Bloomberg, Lyxor Cross Asset Research, Lyxor ETF. The figures relating to past performances refer to past periods and are not a reliable indicator for future results.

US financial conditions Index vs. MSCI China Index

98,8

98,9

99

99,1

99,2

99,3

99,4

99,5

2

4

6

8

14

12

10

US financials conditions MSCI China

Dec-2015

Jan-2016

Feb-2016

Apr-2016

Apr-2016

May-2016

Jun-2016

Jul-2016

Aug-2016

Sep-2016

Oct-2016

Nov-2015

Dec-2016

Nov-2016

Jan-2017

Feb-2017

Apr-2017

Apr-2017

May-2017

Jun-2017

Jul-2017

Aug-2017

Sep-2017

Oct-2017

Dec-2017

Nov-2017

Jan-2018

Feb-2018

Apr-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

€334mStrong inflows

China equity ETFs monthly flows

Dec-2015

Jan-2016

Feb-2016

Apr-2016

Apr-2016

May-2016

Jun-2016

Jul-2016

Aug-2016

Sep-2016

Oct-2016

Nov-2015

Dec-2016

Nov-2016

Jan-2017

Feb-2017

Apr-2017

Apr-2017

May-2017

Jun-2017

Jul-2017

Aug-2017

Sep-2017

Oct-2017

Dec-2017

Nov-2017

Jan-2018

Feb-2018

Apr-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

-400

-300

-200

-100

100

200

300

400

0

China Equity ETFs flows...could support a durable positive trend on flows.

Easier US financial conditions coupled with Chinese equities rebound...



What does it all mean?

Explore our online analytics toolswww.lyxoretf.co.uk/en/instit/etfresearch/type/monthly-flows

Discover more


Find out whether the money is going to the right place with our Manager Monitor

Read more

Check out our key investment calls with the Latest from Lyxor

Read more

Check out the most relevant big investment idea

Read more

Fixed income ETFs lagging far behind

Bad year for Commodity

ETFs

YTD net Inflows on European ETFs by asset class

€45.5bnTotal AUM is up 4.5% since 2017ETFs on the rise

€666bn

A moderately successful year so far - €5bn above 2016

Total Equities

31,553

Developed Market Equities

25,757

of wh. US Equities

20,453

-1,300of wh. Asia PacificEquities

-1,959of wh. Europe Equities

-1,337Corporate

bonds

-690High Yield

of wh. World

Equities7,216

Emerging Market Equities3,184

Global Equities

2,611

Total Fixed

Income

10,810Developed

MarketGovies

8,719

of wh. Europe Govies

3,287589Inflation Linked

of wh.US Govies

4,519 Emerging Market Govies

1,678 407Money Market

-62Commodities

Still a decent year for Equity ETFs



Appendix: The month in numbersTotal

Equity Equity Emerging MarketStill a good year for equity ETFs (€31.6bn YTD) Cumulated monthly NNA on equity ETFs

Fixed income CommoditiesFixed income inflows head past the €10bn mark Cumulated monthly NNA on fixed income ETFs

European ETFs in November 2018 Net Inflows (EURm)NNA rebound to €4.0bn from €753m in October Monthly NNA on European ETFs

Still a decent year for European ETFs Cumulated monthly NNA on European ETFs

Emerging market equity flows have slowed Cumulated monthly NNA on emerging market equity ETFs

Worst ever year for commodity ETFs Cumulated monthly NNA on commodity ETFs

0 2,000 4,000 6,000 8,000 10,000 16,00012,000 14,000

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Nov-2018

Oct-2018

Dec-2017

Fev-2018

Mar-2018

Jan-2018

4,212

13,575

7,8711,331

672

1,140

794

4,258

2,293

5,849

753

3,979 2015 2016 2017 2018

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec-10,000

10,000

20,000

30,000

40,000

50,000

60,000

70,000 2015 2016 2017 2018

0

5,000

10,000

15,000

20,000

25,000

30,000


2015 2016 2017 2018

-4,000

4,000

6,000

8,000

10,000

-2,000

2,000

0


2015 2016 2017 2018


2015 2016 2017 2018

3,000

3,500

2,500

2,000

-500

1,500

1,000

500

0




Fixed IncomeSignificant inflows for Fixed Income ETFs (€1.5bn) Monthly NNA on fixed income ETFs

CommoditiesFlows into Commodity ETFs collapse again Monthly NNA on commodity ETFs

EquityEquity inflows rebounded strongly Monthly NNA on equity ETFs

Developed market equities still outdo EM peers Monthly NNA on developed vs. emerging markets equity ETFs

DM bonds outdo EM peers again Monthly NNA on developed vs. emerging markets fixed income ETFs

...mainly due to broad commodity ETFs Monthly NNA on broad & precious metals ETFs

0

2,000

-2,000

4,000

6,000

8,000

10,000

12,000

14,000

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

-200

-400

-600

-800

-1,000

0

200

400

800

600

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

-4,000

-2,000

0

2,000

4,000

6,000

8,000

10,000 Developed Market Emerging Market

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

-1,000

0

800

600

400

200

-600

-800

-200

-400

1,000 Broad Commodities Precious Metals

-

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

-1,000

-500

0

500

1,000

1,500

2,000

2,500 Developed Market Emerging Market

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

Overview by asset class


0

500

-1,000

-500

2,000

1,500

1,000

2,500

3,000

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018



First positive month for Italian and Spanish equities since Nov-17 Monthly NNA on peripheral Europe equity ETFs

Eurozone equity flows turn negative Monthly NNA on Eurozone equity ETFs

European EquitiesFlows on European Equity ETFs plummeted Monthly NNA on European equity ETFs

Virtual flat month for German equity ETFs Monthly NNA on German equity ETFs

Little interest on developed Europe equities Monthly NNA on developed Europe region equity ETFs

First positive flows into financials Europe equity ETFs since February Monthly NNA on financials Europe equity ETFs

Equities


-5,000

-2,000

-3,000

-1,000

0

-4,000

1,000

2,000

3,000

4,000

5,000

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

-100

-200

-250

-150

-300

-350

-450

-400

-50

0

50

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

-600

-400

-200

0

400

200

800

600

1,000

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

4,000

2,000

1,000

3,000

0

-2,000

-1,000

-3,000

-4,000Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

0

500

-500

1,000

-1,000

-1,500

1,500

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

0

1,000

-1,000

2,000

-2,000

-3,000

3,000

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018



Small inflows continue on emerging market equity ETFs Monthly NNA on emerging market equity ETFs

Best month ever for smart beta ETFs Monthly NNA on smart beta ETFs

US & Japan equities

Emerging market equities

Smart Beta / Value

Positive trend weakens slightly for US Equity ETFs Monthly NNA on US equity ETFs

Japan equity rebound wasn’t reinforced Monthly NNA on Japan equity ETFs

Still little interest on broad EM equity ETFs Monthly NNA on broad EM equity ETFs

Second consecutive positive month for value style equity ETF flows Monthly NNA on value style equity ETFs

Equities (cont’d)


0

500

1,000

1,500

2,000

2,500

3,000

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

0

500

-500

-1,000

-1,500

-2,000

1,000

1,500

2,000

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

0

500

1,000

-500

-1,000

2,000

1,500

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

-500

0

500

1,000

-1,000

-1,500

-2,000

1,500

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

-1,500

-500

-1,000

0

1,000

500

1,500

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

400

200

-200

-400

-600

-800

0

-1,000Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018



Inflation-linked bond flows remain negative Monthly NNA on inflation-linked bonds ETFs

Corporate bonds favoured over HY peers Monthly NNA on corporate & high yield bond ETFs

European Govies US Govies

Inflation Linked EM debt

Credit Market Short-bond strategy

Inflows into EU government bonds accelerate Monthly NNA on EU government bond ETFs

Still solid inflows into US treasuries Monthly NNA on US government bond ETFs

Modest inflows into emerging market debt Monthly NNA on Emerging market debt ETFs

Strong rebound for short bond strategies Monthly NNA on short bond strategy ETFs

Fixed Income


-400

-200

0

800

600

400

200

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

Corporate Bonds High Yields

0

-1,500

-1,000

-500

500

1,000

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

-400

200

0

-200

400

600

800

1,000

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

-600

-400

400

200

0

-200

600

1,000

800

1,200

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

-500

-300

-400

-200

-100

0

100

200

300

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

Feb-2018

Mar-2018

Apr-2018

May-2018

Jun-2018

Jul-2018

Aug-2018

Sep-2018

Oct-2018

Nov-2018

Dec-2017

Jan-2018

-1,000

-500

0

500

1,000

1,500



Contact [email protected] | +33 (0)1 42 13 59 56

Marlène Hassine KonquiHead of ETF Research+33 1 42 13 59 [email protected]

Kristo DurbakuETF Research Analyst+33 1 57 29 25 [email protected]

Check out theAlpha/Beta Allocator Q3 2018

Read more

Read the full 2017 analysison active and passiveperformance

Read more

ETF Research Team

Analysing active & passive fund performance What 2017 results tell us about portfolio construction

FOR PROFESSIONAL AND QUALIFIED INVESTORS ONLYThis document is reserved and must be given in Switzerland exclusively to Qualified Investors as defined by the Swiss Collective Investment Scheme Act of 23 June 2006 (as amended from time to time, CISA).

LYXOR ETF Research

mailto:[email protected]

mailto:[email protected]

https://www.lyxoretf.fr/pdfDocuments/Q3%20Alpha%20Beta%20Allocator%20FR_3b87abe8e5e708106f1424b6027d3008.pdf

http://www.lyxor.com/uploads/tx_bilyxornews/Lyxor_ETF_Active_Passive_2017_01.pdf



Important informationThis document is of a commercial nature and not of a regulatory nature. It is each investor’s responsibility to ascertain that it is authorised to subscribe, or invest into this product. Prior to investing in the product, investors should seek independent financial, tax, accounting and legal advice.

The indexes and the trademarks used in this document are the intellectual property of index sponsors and/or its licensors. The indexes are used under license from index sponsors. The Funds based on the indexes are in no way sponsored, endorsed, sold or promoted by index sponsors and/ or its licensors and neither index sponsors nor its licensors shall have any liability with respect thereto.

Lyxor UCITS ETFs referred on this document are open ended mutual investment funds (i) established under the French law and approved by the Autorité des Marchés Financiers (the French Financial Markets Authority) or (ii) established under Luxembourg law and approved by the Commission de Surveillance du Secteur Financier (the Luxembourg Financial Markets Authority) (CSSF) and authorized for marketing of their units or shares in various European countries (the Marketing Countries) pursuant to the article 93 of the 2009/65/EC Directive.

Société Générale, Lyxor AM and Lyxor Asset Management Luxembourg recommend that investors read carefully the “risk factors” section of the product’s prospectus and the “Risk and reward” section of the Key Investor Information Document (KIID). The prospectus in French for French Lyxor UCITS ETFs and in English for Luxembourg Lyxor UCITS ETFs and the KIID in the local languages of the Marketing Countries are available free of charge on www.lyxoretf.com or upon request to [email protected].

The attention of investors is drawn to the fact that, the prospectus of Luxembourg Lyxor UCITS ETFs is only available in English.

Updated composition of the product’s investment portfolio is available on www.lyxoretf.com. I ndicative net asset value is published on the Reuters and Bloomberg pages of the products, and might also be mentioned on the websites of the stock exchanges where the product is listed. The products are the object of market- making contracts, the purpose of which is to ensure the liquidity of the products on the exchange, assuming normal market conditions and normally functioning computer systems. Units of a specific UCITS ETF managed by an asset manager and purchased on the secondary market cannot usually be sold directly back to the asset manager itself. Investors must buy and sell units on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units and may receive less than the current net asset value when selling them.

These products include a risk of capital loss. The redemption value of these products may be less than the amount initially invested. In a worst case scenario, investors could sustain the loss of their entire investment.

The indices referred to herein (the “Index”) are not sponsored, approved or sold by Société Générale, Lyxor AM or Lyxor Asset Management Luxembourg. Société Générale, Lyxor AM and Lyxor

Asset Management Luxembourg shall not assume any responsibility in this respect.

The accuracy, completeness or relevance of the information which has been drawn from external sources is not guaranteed although it is drawn from sources reasonably believed to be reliable. Subject to any applicable law, Société Générale, Lyxor AM and Lyxor Asset Management Luxembourg shall not assume any liability in this respect.

The market information displayed in this document is based on data at a given moment and may change from time to time.

This document does not constitute an offer for sale of securities in the United States of America. The product herein described will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) and may not be offered or sold in the United States of America without being registered or being exempted from registration under the U.S. Securities Act. This document does not constitute an offer, or an invitation to make an offer, from Société Générale, Lyxor Asset Management (Lyxor AM) or any of their respective subsidiaries to purchase or sell the product referred to herein.

Société Générale is a French credit institution (bank) authorised by the Autorité de contrôle prudential et de résolution (the French Prudential Control Authority).

Lyxor Asset Management Luxembourg, 18, boulevard Royal L-2449 Luxembourg, is a Luxembourg société anonyme authorized by the Commission de Surveillance du Secteur Financier as management company.

Lyxor International Asset Management (Lyxor AM) is a French investment management company authorized by the Autorité des marchés financiers and placed under the regulations of the UCITS Directive (2009/65/CE).

© COPYRIGHT 2018 LYXOR INTERNATIONAL ASSET MANAGEMENT ALL RIGHTS RESERVED

Notice to UK Investors: This material is issued in the UK by Lyxor Asset Management UK LLP, which is authorized and regulated by the Financial Conduct Authority in the UK under registration number 435658.

Notice to Swiss Investors: This document and the information contained therein do not constitute an issue prospectus according to articles 652a and 1156 of the Swiss Code of Obligations (“CO”) or a listing prospectus according the Listing Rules of the SIX Swiss Exchange. The products are authorized for the offer and distribution in Switzerland or from Switzerland pursuant to the Swiss Federal Act on Collective Investment Schemes (CISA). The Swiss Financial Market Supervisory Authority FINMA has authorized Société Générale, Zurich Branch (Talacker 50, Case postale 1928, 8021 Zürich), to act as Swiss Representative and Paying Agent of the Funds in Switzerland. The product’s documentation (prospectus, KIID, articles of association, annual and semi-annual reports) can be obtained free of charge at the Swiss representative’s office.

Knowing your riskIt is important for potential investors to evaluate the risks described below and in the fund prospectus on our website www.lyxoretf.com

Capital at riskThe capital invested is not guaranteed.

Replication riskThe fund objectives might not be reached due to unexpected events on the underlying markets which will impact the index calculation and the efficient fund replication.

Fund liquidity riskThe fund’s liquidity and/or value may be negatively affected by different factors.

Counterparty riskThe fund may be exposed to the counterparty risk resulting from the use of otc forward financial instruments contracted with a lending institution, or from the use of a securities lending programme.

Currency risk The funds are exposed to currency risk, as they may be denominated in a currency different from the index.

Ref

. 714

438

- S

tudi

o S

ocie

te G

ener

ale

- 12

/201

8


Contact [email protected] | +33 (0)1 42 13 59 56