EUROPE - European Exchange Traded Fund (ETF) managers can effectively compete against their US counterparts in the niche markets, although they would struggle in some of the more mainstream ones.
This was the view of Marie-Pierre Ravoteur, co-head of the EasyETF development platform jointly managed by AXA Investment Managers and BNP Paribas.
"Even if [Europe] was later coming in to the ETF market compared to the US, that is not the case in the niche markets, which is an area we are more aggressive in," she said.
Ravoteur said the US market had large products on offer, which gave them the advantage in terms of economies of scale, but that was not the case in the niche areas.
"If you look at the four main ETFs in the US, they are cheaper, which is down to their size. But with more specific asset classes, the US managers' fees are in line with those in Europe, for example with the commodities ETF," she added.
In other news, EDHEC announced today the initial results of its European ETF Survey, which predicted ETF useage would increase well ahead of the corresponding figures for futures, index funds and total return swaps.
According to the survey, 55% of respondents predicted an increase in the ETF usage in the next few years, compared to only 34% for futures, and 29% and 28% respectively for index funds and total return swaps.
It also found that 48% of European asset managers and institutional investors had implemented a core-satellite type organisation of their allocation, while 24% of asset managers and institutional investors used ETFs to carry out tactical allocation.
In this week's Pensions Buzz, we want to know if The Pensions Regulator (TPR) is taking the right approach by naming and shaming schemes which breach their auto-enrolment (AE) duties.
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