ETF Securities launches white-label ETF service

Sep 9th, 2013 | By | Category: ETF and Index News

ETF Securities, a London-based provider of exchange-traded products (ETPs), has launched a service enabling third-party asset managers from around the world to build and launch white-labelled ETFs in Europe.

ETF Securities launches white-label ETF service

Matt Johnson, Head of Distribution EMEA, ETF Securities

Known as Canvas, the service will provide asset managers with a range of ETF-based solutions, including the ability to build ETFs using ETF Securities’ full infrastructure, set up a bespoke ETF platform, convert existing UCITS funds into ETFs or add an ETF share class into a UCITS fund.

The service bears a resemblance to services offered in the US by outfits such as Exchange Traded Concepts, Forum Investment Advisors, ETF Issuer Solutions, AdvisorShares and ALPS. In Europe, its nearest competitor in the space is likely to be Source, although that firm operates a very different business model.

One of the early pioneers of the ETP industry, ETF Securities has offered ETFs since 2008 and plans to use its expertise to help bring new entrants to the ETF market, creating more choice for investors.

Commenting on the launch, Matt Johnson, Head of Distribution EMEA, ETF Securities, said: “Asset managers have been steadily increasing their own use of ETFs for some time and recognise that it is one of the highest growth areas within the industry with approximately US$350bn invested in Europe alone. However, many do not have the infrastructure, expertise or resources to build their own products. Canvas provides an easy and efficient way for them to launch ETFs, relying on ETF Securities’ years of proven expertise and infrastructure.”

Johnson stated that firm had already received strong interest from asset managers in Europe, the US and China.

There has been a tenfold increase in global ETF assets under management (AUM) over the last decade, with AUM currently standing at around the $2 trillion mark. ETF Securities expects the market to grow more than 50% over the next two years, taking AUM to $3 trillion, as investors become more aware of the cost advantages, transparency and ease of use that ETFs offer over many other traditional financial vehicles.

Institutional and retail investors are increasingly using ETFs to gain regional exposure to developed and emerging markets as well as to access specific asset classes. Widening and deepening distribution channels across market segments and regions, and increasing market awareness of ETFs, are expected to further drive demand for these investment products.

Johnson added: “As we are in constant contact with our investor base, we are able to respond quickly to their needs. The launch of Canvas is one of a number of new initiatives we are working on that will expand our business into some new and exciting areas.”

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