Assets under management held on UK exchange-traded fund platforms rocketed 52 per cent between December 2010 and December 2012 at iShares, the ETF platform of US-listed BlackRock.

iShares' data illustrates various inflow and outflow trends in each of the four quarters, as advisors and investors “managed their way through last year’s market volatility and investment opportunities,” the firm said. 

For example, corporate bonds logged strong inflows in the first quarter of 2012, compared to government bonds where iShares said outflows were high. Meanwhile, in Q2 some trends of the previous quarter were reversed, with government bond ETFs showing strong inflows and developed market equities posting strong outflows. Corporate bond ETFs again saw strong inflows of £17 million ($25.4 million), demonstrating a “preference for bonds over equities,” iShares said.

In the third quarter, however, developed market equities registered strong inflows against equally-strong outflows in government bonds, as corporate bonds again showed robust inflows. Property ETFs registered heavy inflows in the first and second quarters, but slowed in Q3.

In the final quarter, iShares said that developed market equities, corporate bonds, emerging market sovereign bonds and dividend-focused ETFs all logged strong inflows. UK equities brought in £22 million as another £27 million flowed into five separate euro equity ETFs. By contrast, government bonds and property ETFs saw outflows of £28 million.

“Advisors and investors are adjusting to this new world of increased market volatility, low yields, and Retail Distribution Review-enforced changes to advisor pricing,” said Pollyanna Harper, head of intermediary UK sales at iShares.

Meanwhile, recent data from Morningstar shows that the global fund management industry climbed at a 3.9 per cent organic growth rate last year. In its first global fund flows trend report, the firm highlighted that interest from cross-border investors was the driving force behind the US fixed income category, which enjoyed a 47 per cent organic growth rate (view here).