CIBC Mellon | Best ETF Custodian in Canada | Best ETF Platform in Canada
Ronald C. Landry, Head of Product and Canadian ETF Services, CIBC Mellon engaged in this Q&A interview with ETF Express
Why do you think you won this award?
CIBC Mellon has a strong history as an ETF services and investment operations provider here in Canada. We have proudly been at the forefront of serving ETF providers since 2009.
This award is a testament to our ability to adapt to the ever shifting and innovative nature of the ETF market here in Canada. As a market leader in our space, we know the value of cutting-edge technology and the importance of client service. When our clients approach us to launch a new product, we’ve always adapted to meet those demands. Investors seek funds that meet the highest standards for resilience, timeliness and conviction, and we continue to assist our clients in building for future growth by offering market-leading platform and capabilities.
CIBC Mellon provides a wide range of ETF product types, including equity, fixed income, derivative-based products and hard commodity and currency funds. Over the past decade, our organisation has achieved numerous milestones in the ETF space. We were the first service provider to join Canadian ETF Association (CETFA) and are the only service provider represented on CETFA’s board of directors. Additionally, we were also the first service provider to the following ETF categories: cannabis, cryptocurrency, psychedelic, actively managed, high interest savings account, multi-class.
What is the size and scale of your business at the moment?
Our business has experienced significant growth in terms of both size and scale since entering the space. With robust infrastructure and dedicated ETF service teams across our business units we are able to cater to a wide range of clients and products in order to be able to handle a substantial volume of transactions efficiently.
What trends have you seen over the past year?
The Canadian market’s unique blend of high governance and high innovation makes it an excellent market for new structures and ideas that also require a trust premium. Canadian ETFs have brought in CAD15.3 billion this year, with fixed-income funds accounting for CAD9.2 billion.
Higher yielding products that have a shorter duration, such as high-interest saving accounts or money markets products, have been at the forefront from a trend perspective.
It’s also worth noting that the integration of innovation and governance also extends to the way the regulators and government entities have approached new asset classes, new instruments, and new markets. While the world focuses considerable attention on digital assets, we continue to support our clients as they bring new and innovative strategies to market.
From an industry perspective, Canadian and US market stakeholders including US and Canadian central depositories, the Canadian Capital Markets Association (CCMA), and industry participants including CIBC Mellon are all preparing to shorten the settlement cycle in Canada to T+1, the day after trade date. This change has wide-ranging implications. For starters, an accelerated settlement cycle requires market participants to review their operations, technology, procedures, and processes.
Where do you see the ETF industry going in terms of products over the coming year?
As we look ahead to next year, the ETF industry in Canada is poised for continued growth and forward-thinking solutions. With the increasing popularity of ETFs as investment vehicles, we anticipate several key trends and developments.
We expect to see an expansion in thematic ETFs. These funds focus on specific sectors, themes or investment strategies and allow investors to align their portfolios with their interests or capitalize on emerging trends. As ESG has been a driver in the space, we anticipate continued growth in thematic ETFs that target sustainable sectors or companies with strong appetite for ESG practices.