DFMs using sector ETFs doubles
Wealth managers are increasing their use of sector ETFs as they seek a wider dispersion of returns and a more granular approach to asset allocation, according to research from SPDR ETF.
Wealth managers are increasing their use of sector ETFs as they seek a wider dispersion of returns and a more granular approach to asset allocation, according to research from SPDR ETF.
The European Union Money Market Funds regulation (MMF) along with new Basel III regulations will push more investors to increase their use of the short term debt instruments, according to State Street.
State Street Global Advisors (SSGA) is focusing part of its fixed income portfolio on global convertible bonds due to expectations of higher interest rates and a stronger equity market over the next 12 months, but fund selectors are only mildly interested in the asset class.
State Street has ramped up the competition among the biggest US ETF providers by slashing prices across 15 ultra-low cost trackers.
Two thirds of asset managers expect it will be “more challenging to achieve growth” in the current market environment, according to a survey by State Street. To still be able to hit their growth targets, they plan to expand operations into new country markets.
Confidence among non-US investors declined significantly in November, according to the State Street Global Investor Confidence Index. Asian investors reacted most strongly to Trump’s election.
The confidence of North American investors diminished by 10% between July and August, and this could be further hit by a Federal Reserve decision to raise rates, suggested Kenneth Froot of State Street Global Exchange.
The British vote for Brexit has seriously affected the confidence of institutional investors across the globe. In July, State Street’s Investor Confidence Index dropped to such an extent that institutional investors globally are now decreasing their allocation to risky assets.
The State Street Investor Confidence Index increased to 114.6 in March, up 8 points from February’s 106.6.
European investors are taking risk off the table after the recent market turmoil, the February reading of the State Street Investor Confidence Index (ICI) suggests. However, investor confidence in North America and especially Asia increased over the month.
The majority of global pension funds have been increasing their equity allocation in the past six months. However, many would prefer to decrease it if they could just find yield somewhere else, because they expect a serious market correction.
Insurance companies are much more data savvy than pension funds, according to new global research commissioned by American asset manager State Street. Some 45% of insurance company executives see their company as data innovators, compared to only 22% of their peers from pension funds.