UK - The European market for exchange traded funds (ETFs) grew by around 60-70% last year, according to Jennifer Grancio, managing director and head of distribution for iShares Europe.
iShares Europe, is the brand used by Barclays Global Investors (BGI) for ETFs, and commenting on recent trends, Grancio said the US market grew by approximately 40% during the last 12 months.
Grancio said: “The competition has increased and we are seeing more players wanting to get into this business. Most pension funds are looking for some beta and ETFs are very easy to access, transparent and a good way of getting exposure.”
Looking ahead, Grancio predicted there would be more ETFs covering the fixed income arena in addition to those for emerging asset classes.
Furthermore, Grancio said that as hedge funds increasingly use ETFs, BGI would continue to answer the needs of portfolios such as hedge funds to meet their demands.
She added that that pension schemes were also using ETFs in conjunction with securities lending as part of the overall investment management process.
In February this year, Global Pensions reported that ETF assets under management are expected to surge from US$574bn to over $2trn by 2011, according to Morgan Stanley.
Professional Pensions is looking to update its list of pensions master trusts in the UK ahead of authorisation. Can you help?
RPMI Railpen is in the next step in the journey towards achieving cost disclosure. Victoria Bell tells Stephanie Baxter about taking part in the Cost Transparency Initiative's pilot phase
Interserve's numerous defined benefit (DB) schemes have retained a sponsor link after the company entered into administration and was sold.
Chris Hannon has been named chairman of the Railways Pensions Trustee Company after a unanimous vote of approval from its board last week.