Bringing you live news and features since 2006 

Assets in Ibbotson ETF portfolios grow 54 per cent in six months


Denver-based Alps Advisors says assets in its Ibbotson ETF Allocation Series have increased more than 54 per cent during the previous two quarters.

Denver-based Alps Advisors says assets in its Ibbotson ETF Allocation Series have increased more than 54 per cent during the previous two quarters.

The increase in assets, driven by strong inflows during the market decline, is a significant deviation from sagging sales elsewhere in the variable annuity and mutual fund industry.

Launched in April 2007 primarily for use in variable annuities and variable life contracts, the Ibbotson ETF Allocation Series consists of five asset allocation portfolios that invest exclusively in exchange-traded funds.

Ibbotson Associates, an asset allocation authority, is sub-advising the portfolios with Alps serving as adviser.

‘The growing client demand for exchange-traded and index-based products is very encouraging in light of where the markets have been,’ says Corey Dillon, vice president and director of Alps Institutional Advisory Services.

‘As many insurance companies are now scrambling to offer index-based investment options, our partners who made these portfolios available to their policyholders in the last couple years are now finding themselves well positioned to compete.’

Hal Harris, national sales vice president at Securian Retirement Distributors, adds: ‘Incorporating the Ibbotson ETF Allocation Series from Alps within our variable annuities has proven to be a differentiator to our reps and their clients. This has helped drive sales, especially through the independent broker dealer channel, as we have attracted more reps who are looking for a robust range of investment options within a variable annuity structure.’

With insurers facing rising costs to hedge the guarantees in their annuity and life insurance business, Alps expects to see even greater demand for both asset allocation and ETF-based investments.

‘We are just beginning to scratch the surface of ETF solutions in the insurance market as providers look for ways to reign in basis risk and control their costs of hedging,’ Dillon says.

Assets in the Ibbotson ETF Allocation Series totalled USD71.5m as of 31 March, up from USD46.3m at 30 September 2008.

Latest News

There were two companies launching this week, each reflecting key and recurring themes in ETF strategies. ..
A quiet week for launches in the US...
RBC Global Asset Management (GAM) was the only firm to launch new ETF offerings in March 2023. The firm launched..
Solactive writes that with current developments and economic trends, such as the COVID-19 pandemic, increasing inflation rates, and energy prices,..

Related Articles

March 2021 saw USD1.2 trillion Northern Trust Asset Management launch its ETF arm, FlexShares in Europe, with two climate focused...
Marie Coady, PwC
PwC’s new research amongst global ETF managers, sponsors and service providers reveals a sector with upbeat growth projections. Despite the...
Vishal Kapoor, Bandhan Mutual Fund
ETF Express reported on a couple of ETF launches in India over the last couple of weeks, including the new...
ETF Awards
We are very pleased to bring you the winners in the 13th outing of the ETF Express European ETF Awards,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by