Advisers play key role in ETF market

Added: (Fri Apr 23 2010)

Pressbox (Press Release) - Advisers are playing an important role in helping Australians accept and use
Exchange Traded Funds (ETFs), according to the latest research from iShares.



An ETF share register analysis conducted in March 2010 found that over 50 per cent of individual
investors obtain financial advice from professionals such as financial planners, brokers or
accountants.



In addition, after emerging as the early adopters, self managed superannuation fund (SMSF)
investors continue to boost assets in ETFs. The report found approximately half of this segment
obtains professional advice.



“The benefits of ETFs – transparency, cost-effective diversification, and the fact that they can trade
them on the ASX – really speak to the SMSF market. Many SMSF investors like the do-it-yourself
ease of trading ETFs just like shares, but almost equally they are using financial advisers as a
sounding board and a source of professional insight,” Mr Tom Keenan, Director, iShares said.



The Australian ETF market saw spectacular growth in 2009, surpassing global ETF market growth
of 45.7 per cent, and Mr Jonathan Morgan, Business Development Manager Australian Securities
Exchange, says ETFs continue to break new ground.



“The latest ASX figures show that the 12 month average ETF trades as of March 2010 was 14,439,
or 44 per cent more than it was 12 months ago. The ETF market capitalization increased 150 per
cent in the past 12 months to a record $3.2 billion at the end of March 2010,” Mr Morgan said.



This local ETF growth is expected to continue to outpace BlackRock’s projected global ETF market
growth of 25-30 per cent over the next five years, as the market matures and more investors
understand the benefits. Australia is also benefitting from greater choice of ETFs available from a
growing number of issuers.



“Investor choice is rapidly increasing and in this environment it will become more important for
investors and advisers to think carefully about what they are looking for and getting, and ask
questions such as what is the issuer’s track record and does the issuer have extensive experience
in managing index investments,” Mr Keenan stated.



iShares will be among a number ETF providers and specialists presenting at a national Exchange
Traded Funds (ETF) ASX roadshow commencing in Perth today. The ASX roadshow will provide
investors with an opportunity to learn more about ETFs, particularly as Australian investors
increasingly include ETFs in their SMSF portfolios.



For more information about the roadshow go to ASX website



www.asx.com.au/etfadviser




About BlackRock

BlackRock is a leader in investment management, risk management and advisory services for institutional
and retail clients worldwide. At December 31, 2009, BlackRock’s AUM was $3.346 trillion. BlackRock offers
products that span the risk spectrum to meet clients’ needs, including active, enhanced and index strategies
across markets and asset classes. Products are offered in a variety of structures including separate
accounts, mutual funds, iShares® (exchange traded funds), and other pooled investment vehicles.
BlackRock also offers risk management, advisory and enterprise investment system services to a broad
base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of
December 31, 2009, the firm has approximately 8,500 full-time employees in 24 countries and a major
presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle
East and Africa. For additional information, please visit the Company's website at www.blackrock.com.