ITALY - The Bank of New York is to service Italy's recently unveiled first socially responsible exchange traded fund (ETFs).
BNY will act as fund administrator - through its Irish joint venture, AIB/BNY - to The Nextra _1 - Ethical Index Euro ETF which started trading on the Italia Borsa on January 13.
Commenting on the launch, Marc Russell-Jones, BNY’s European ETF product manager, said: “Socially responsible investing (SRI) is one of the most dynamic and fastest growing equity investment classes in Europe with funds invested growing by over 40% between mid-1999 and 2002.
“Due to their efficient administration structure ETFs are incredibly cost effective and make them a particularly effective tool for European investors to gain exposure to SRI.”
ETFs are a relatively new kind of open-ended investment fund that are listed on various stock exchanges worldwide. They are touted as efficient trading vehicles that offer intra-day liquidity and market depth, allowing traders to tap multiple pools of liquidity. The open-ended structure allows for efficient pricing, so that the prices of the fund shares on the exchange will normally trade close to net asset value.
Russell-Jones added: “With 76% of investors indicating that they would invest in vehicles with socially responsible criteria we regard the launch of this ETF as an ideal vehicle to gain exposure at lower cost than many other forms of investing SRI.”
BNY services 45 ETFs with over US$35bn in assets under management, worldwide. In Europe, in addition to servicing NASDAQs recently launched eQQQ, it also administers Merrill Lynch Investment Management’s LDRS family and Credit Lyonnais Asset Management’s European SPDR family.
*IPN’s sister title Global Pensions – building on the success of its ETF Round Table 2002 – will host the Exchange Traded Funds Forum 2003, bringing together the world’s leading players in the ETF marketplace to discuss all the issues as they relate to pension funds. Do not miss the opportunity to benefit from a unique case study tour of all ETFs’ vital issues.
For more information or to register, please call Monica Parolalista on 020 7378 4471 or e-mail [email protected]
The full conference programme is available at www.globalpensions.com/etf.
The Pensions and Lifetime Savings Association (PLSA) is in the process of convening an industry-wide group to take forward the work of the Institutional Disclosure Working Group (IDWG).
The Transfers and Re-registration Industry Group (TRIG) has given its support to an initiative which aims to complete occupational pension transfers within three weeks.
Scottish Widows has completed a bulk annuity deal for the Hitachi UK Limited Pension Scheme.