As Arnaud Llinas begins his new role as Amundi ’ s head of ETF , indexing and smart beta , he sat down with ETF Stream ’ s editor Tom Eckett to discuss the future of the ETF market , the benefits of the Amundi-Lyxor merger and what investors can expect in the future .
As we begin to emerge from the pandemic , what are you expecting in the ETF market in 2022 ?
The ETF market remained resilient last year , growing significantly in Europe as managed assets rose 33 % to € 1.3trn . Of this , over € 200bn assets are in ESG ETF strategies – a rotation towards a sustainable future that shows no signs of slowing down .
However , as we emerge from the shadow of the pandemic in 2022 , we are not expecting a return to normality . We face slowing growth and rising inflation , and a number of critical global issues still need to be addressed , not least the climate emergency and the energy transition . Meanwhile , megatrends offer opportunities in new areas of investment ; digitalisation and artificial intelligence being two identified by survey respondents as key megatrends for this year .
While 2022 may present some risks for investors , there are also potential investment opportunities , and we are ready to support investors as they navigate the twists and turns of the coming months .
We also note the structural trends within the industry from the pressure on fees , to regulation and digitalisation ; all of which make ETFs a tool of choice within portfolios .
What benefits do you see in the merger of Amundi ETF and Lyxor ETF ?
I see the union of Amundi ETF and Lyxor ETF as a union of complementary strengths and talent . We are bringing together Amundi ’ s expertise in partnerships and sustainability with Lyxor ’ s innovation and agility . It is all underpinned by technology and exceptional people from product development to portfolio management and from marketing to business development .
Amundi has become the largest European ETF provider , with more than € 182bn 1 ETF assets under management , and we offer one of the most comprehensive and liquid UCITS ETF ranges anywhere . The expanded range is well positioned to meet investors ’ needs , particularly in the key areas of sustainability , thematics and fixed income .
As an asset manager , we have a duty to equip our clients with knowledge and choice ; to understand that there is no single solution to meet a generic need – particularly when it comes to ESG – rather a requirement to respond to individual needs with the right solutions .
Together , our size , values , and authentic expertise in voting and engagement , allow us to move further towards a future where financial objectives are balanced with sustainability .
What does this mean for investors ?
Investors have told us they want more . They want deeper relationships and an ETF issuer that listens to them and evolves with them – helping them address today ’ s investment challenges and anticipate those of tomorrow .
We can see that the ETF market is changing – towards new products , new solutions and a different approach to ETF distribution . Amundi ETF will be the partner that investors need to respond to this . We are setting out to build the European ETF champion everyone deserves and raise the bar for our entire industry .
Head of ETF , Indexing & Smart Beta Amundi
About Amundi ETF , Indexing and Smart Beta
Amundi ETF , Indexing and Smart Beta is one of Amundi ’ s strategic business areas . With over 30 years of expertise in index solutions replication and development , Amundi is the European leader in ETFs 1 and a partner of choice in passive management , recognised for its flexibility , innovation and competitiveness . The platform is also known for its ability to develop Smart Beta and Factor Investing solutions . Responsible investment is a key strength and focus of the platform , not only for open funds but also for custom ESG and climate solutions . The business line manages over € 282 billion of assets 2 .
Source : ETFGI , based on the combined assets of Amundi ETF and Lyxor ETF as at 30 September 2021
Amundi pro-forma data as of 30 September 2021
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