News Round-up: Europe’s fixed maturity ETF market takes off
Fixed maturity ETFs are emerging as a staple for private bank clients one year after the strategy first hit the European market. Fixed maturity ETF launches have been rife among issuers since BlackRock was first to market, with DWS, Amundi, Invesco, and BNP Paribas Asset Management swift to follow suit. Antoine Denis, head of advisory and investment solutions at Syz Group said these ETFs slot neatly into these client's portfolios since they have a known maturity date and a known yield to maturity, with investors able to fully grasp what the investments consist of. Lauren Gibbons has the full story.
The Financial Conduct Authority’s (FCA) opening of applications for the Overseas Funds Regime (OFR) ends the post-Brexit uncertainty for ETFs, allowing UCITS vehicles to continue marketing in the UK. ETFs under the Temporary Marketing Permissions Regime must apply for OFR by January, while those without previous access - such as BNP Paribas Asset Management - have already undergone long processes for UK entry. Jamie Gordon unpacks the full implications for ETF issuers here.
BlackRock’s S&P 500 ETF earned the title of Europe’s first ETF to reach $100bn this week after coming to market 14 years ago. $11bn of assets have poured into the product this year alone and remains a popular choice among investors despite not being Europe’s cheapest S&P 500 ETF. Read the full story here.
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