Archive for November 2015

IG accelerates ETF initiative with acquisition of InvestYourWay

Nov 27th, 2015 | By
IG reinforce ETF offering with InvestYourWay acquisition

IG Group, an online trading platform, has announced the acquisition of InvestYourWay, an online investment manager that builds bespoke investment solutions. Michael Newell (pictured), Founder and CEO of InvestYourWay, has joined IG to help develop the offering. Ian Peacock, Head of IG UK, commented: “We’re delighted to have acquired such an innovative business as InvestYourWay and look forward to working alongside Michael in his new role at IG. We believe that by combining InvestYourWay’s innovative technology and IG’s world class platform and development expertise we’ll be able to build a truly best in class offering in the investments space in partnership with BlackRock.

Call for fund platforms to integrate ETFs

Nov 26th, 2015 | By
Despite market uncertainty, ETF opportunities exist across asset classes

Financial advisers are increasingly outsourcing the management of their client’s investments to discretionary fund managers and this, in turn, is driving the demand for exchange-traded funds. Improving access and providing a greater variety of ETFs on UK fund platforms is imperative to foster this demand. Robin Beer, National Intermediary manager at Brewin Dolphin, commented: “ETFs play a key role in delivering value to our clients. Providing advisers with risk appropriate portfolios for their clients relies on broad investment access and choice to make sure our market views are expressed in the most efficient way. We would like to see a broader group of platforms integrate ETFs into their platform offering alongside other tools to provide greater choice.”

Active ETFs gaining traction but many fund managers await SEC ruling on non-transparent ETFs

Nov 26th, 2015 | By
Global ETFs/ETPs gather $10.8bn in AUM during February, according to ETFGI

ETFGI, a London-based exchange-traded fund consultancy, has published research showing that global assets under management within active ETFs/ETPs have reached $32.9bn, as of 31 October 2015. The pace at which this segment of the ETF/ETP market has grown has also increased, with net inflows of $8.9bn year-to-date representing a 23% increase over the previous record set last year. There are currently 232 active ETFs/ETPs globally, comprising 322 listings from 45 providers across 15 exchanges. Despite the growth, however, many asset managers are awaiting the SEC’s ruling on non-transparent ETFs.

Commodities ETP round-up: Investors abandon gold but favour oil and PGM

Nov 26th, 2015 | By
Horizons switches 12 commodity ETFs to Solactive indices

Investors’ patience with gold ETPs wore thin last week as further price declines prompted the first net outflow from gold ETPs in ten weeks, signalling a change in investor sentiment in the yellow metal. Meanwhile, despite slight price declines in oil-based and platinum-group-metals (PGM), significant net inflows were recorded across all ETPs tracking these commodities, as investors who were bargain hunting placed bets on upcoming price reversals.

Source and Pimco introduce GBP-hedged share class for short-term high-yield bond ETF

Nov 26th, 2015 | By
WisdomTree: Currency-hedged ETFs offer protection from Sterling recovery

Source, a European provider of exchange-traded funds, and Pimco, a leading global bond fund manager, have introduced a currency-hedged share class for the Pimco Short-Term High Yield Corporate Bond Index Source UCITS ETF (STHS). According to Source, the fund uses a risk factor-based approach to optimise the replication of the BofA Merrill Lynch 0-5 Year US High Yield Constrained Index, a broad range of short-term US high yield corporate bonds, while mitigating fluctuations between the US dollar and British pound.

Robo-advisors: Opportunity and threat, say UK wealth managers

Nov 26th, 2015 | By
Robo-advisors offer potential for efficiency gains and new business, says Vanguard survey

Robo-advice is considered by the UK wealth management industry to offer the potential for efficiency gains and the opportunity to attract new business, but is also considered as threat by many. “The advent of the robo-advice age is creating significant hype and so it’s not surprising that wealth managers are considering the impact over the long-term. What we do know is that technology is here to stay, so wealth managers will need to consider how to embrace the advantages of technology whilst still emphasising the personal, trust and relationship-based parts of their value proposition,” said Janine Menasakanian, Head of Wealth for Vanguard’s UK business.

WisdomTree’s European platform celebrates launch anniversary

Nov 26th, 2015 | By
Boost’s Short and Leveraged ETP range sees record trading in February

WisdomTree, a leading provider of exchange-traded funds, has reached the one-year anniversary of the launch of its European ETF platform. Assets under management on the platform now surpass $700m across 12 WisdomTree ETFs and 64 Boost ETPs. The firm has expanded its presence across Europe with ETFs now active on the London Stock Exchange, Deutsche Boerse, Borsa Italiana and SIX Swiss Exchange.

Smart beta asset flows outpacing traditional ETFs

Nov 26th, 2015 | By
First Trust rolls out European smart beta ETFs to Swiss Exchange

Smart beta equity exchange-traded funds gathered $3.0bn in new assets globally during October, bringing the year-to-date total to $53.7bn, according to ETF industry consultants ETFGI. Total assets under management for smart beta ETFs now stand at $399bn. “Our findings show that market cap equity ETFs are still the most popular based on AUM where they accounting for $1.79tn. But when compared on their five-year compound annual growth rates, smart beta equity products are growing significantly faster at 39.3% while market cap has been growing at 18.6%,” said Deborah Fuhr, Managing Partner at ETFGI.

Source and LGIM team up on new fund platform

Nov 23rd, 2015 | By
European Insurance ETFs | Nomura overweight insurance sector, bullish on Aviva (AV), Axa (CS), Legal & General (LGEN), Swiss Life (SLW) and Zurich (ZURN)

Source, a leading European exchange-traded fund provider, has appointed Legal & General Investment Management (LGIM), one of Europe’s largest index fund providers, as the investment manager for a new physical ETF platform. Lee Kranefuss, Chairman of Source, commented: “The new platform is all about increasing investor choice. We want to enable our investors to select the structure they prefer and are most comfortable with. Furthermore, having capabilities to launch more physical products will also allow us to target a wider investor base. Over 75% of investor flow since January 2014 has been into physical ETFs, so there is clearly strong demand for this type of replication method.”

ETF Securities broadens range of short & leveraged ETPs

Nov 23rd, 2015 | By
ETF Securities increases S&L offerings on LSE

ETF Securities, one of the world’s leading providers of commodity exchange-traded products, has launched a series of short and leveraged (S&L) products on the London Stock Exchange. The new additions include 18 S&L commodity ETPs and six S&L currency ETPs, with leverage of 3x and 5x respectively. “We believe the additional leverage will first and foremost allow investors to use the currency products to hedge currency risk as well provide additional opportunities to trade on a short-term basis with a competitive total cost of ownership,” said Townsend Lansing, Executive Director – Head of S&L and FX Platforms, ETF Securities (UK).