IFAs show “increasing interest” in ETFs

Financial adviserFifteen per cent of independent financial advisers (IFAs) in a study said they expected to increase their clients’ exposure to ETFs this year. The number, accounting for one-in-seven of the 141 IFAs surveyed, is far outweighed by those who expected their client allocations to remain the same (70%). Source, an ETF provider that commissioned the research, also found 3% of the IFAs expected to decrease their clients’ exposure to the passive vehicles. Previous Source research from last year found average client assets in ETFs and similar products was 12% and over half of the respondents said ETFs accounted for up to 15% of their clients’ assets under management. The latest figures follow an educational campaign among UK IFAs by the ETF Forum, which is made up of providers including ETF Securities and BMO Global Asset Management. Source is not a member. HSBC Global Asset Management announced this month that it had joined the Forum. Mark Weekes, the CEO of ETF Securities, recently told Funds Europe that last year’s roadshow reached 200 advisers across 18 cities. The Forum recently announced more dates this year. More broadly, the Source research found that 56% of IFAs expected assets under management in ETFs globally to rise further this year, following record global inflows of $389 billion (€449 billion) in 2016. Again 3% expected assets levels to remain the same, while 56% thought levels would decrease. Chris Mellor, executive director, equity product management at Source, said: “We are seeing increasing interest from IFAs and other intermediaries in ETFs and expect 2017 to be another strong year of growth among this stakeholder base.” ©2017 funds europe

Sponsored Profiles

SPONSORED FEATURE: Investing for income

May 17, 2017

Portfolio Manager Thomas Kruse examines the findings from Pioneer Investments’ survey on income investing and outlines ways of achieving a target income.

SPONSORED ARTICLE: A radical solution to KYC concerns

May 17, 2017

The 1MDB affair shows that lax know-your-customer and due-diligence procedures are a major risk, says Paolo Brignardello, head of product management and marketing, Fundsquare. New solutions are...

SPONSORED FEATURE: AIFMD - What does Brexit mean?

Apr 18, 2017

An open discussion between funds industry experts and initiated by SGG Luxembourg took place in London to examine  the implications of Brexit for UK fund managers marketing to the EU.

SPONSORED FEATURE: Luxembourg fund reporting – CRS vs FATCA

Apr 18, 2017

Luxembourg funds need clear procedures for CRS compliance, writes Andrew Knight, Partner at M Partners, a member of the Maitland network of law firms.

Executive Interviews

INTERVIEW: Finding managers that can (and do)

Apr 18, 2017

Fabrice Kremer, a fund selector at Banque de Luxembourg Investments, has berated fundamental managers for failing to beat indices, but he remains committed to active funds. He speaks to Nick...

JERSEY INTERVIEW: ‘A steady sort of place’

Mar 21, 2017

The chief executive of Jersey Finance is keen to portray the island as a stable, trustworthy jurisdiction. He talks to George Mitton.

Roundtables

MARKETING & BRANDING ROUNDTABLE: It’s about aspiration

May 17, 2017

With such an intangible product, it can be hard for asset managers to communicate what they do. Having personality and connecting with customer aspirations may be the key, our branding roundtable hears.

ROUNDTABLE: The issue is perception

Mar 21, 2017

Our panel discuss tax transparency, the elegance of private placement and why Jersey could do more to promote itself. Chaired by Tom Cowsill in Saint Helier.