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NEWSLETTER

The time to upgrade your car

Fiona Nicolson talked to Dan Miller, senior managing director of middle office outsourced services at investor-services firm, IQ-EQ in New York this week as the deadline for incorporating T+1 settlement passes. he concludes: “If you were driving the same car that you were driving 20 years ago, it would be in desperate need of an upgrade,” Miller says, noting that some firms have been using a piece of software bought off the shelf 10, 15 or 20 years ago.

What lies behind the move? Miller says: “If you were laying out a map for how to get from T+10 to T+1 30 years ago, you never would have envisaged that bitcoin would be the catalyst for jump starting a shortened settlement cycle. But I believe that it does have an effect on the industry, that there are these instruments being traded and settling in a totally separate way, and challenging how we think about settlement.”

This week also brings you the latest ETF survey from BBH which finds that demand for active ETFs continues to rise, with a majority of ETF investors (78 per cent) predicting an increase in their overall portfolio exposure to active ETFs in the next 12 months and that 80 per cent of ETF investors have purchased at least one active ETF in the past 12 months.

They also found a renewed demand for diversification. ETF investors want to see additional product choices in the active ETF market for fixed income (43 per cent)—which can help preserve capital and returns in times of economic stress—as well as liquid alternatives (42 per cent), which offer potential diversification through exposure to alternative investment strategies, the study says.

We also bring you our latest podcast this week in the Off the Record series, this time in partnership with Harbor Capital Advisors. Follow this link to hear more about the power of fixed income ETFs.

Beverly Chandler, Managing Editor

For live updates please follow us on Twitter and LinkedIn.

LATEST NEWS

As the ETF industry reaches a milestone of USD12.71 trillion in global assets, Brown Brothers Harriman writes that its 2024 Global ETF Investor Survey finds that investors plan to further increase their use of ETFs in the next year, while also expanding the number of ETF providers they invest with.

Global ETF Launches

Global Launches sponsored by STOXX
Non north-American ETF launches this week span crypto to bonds, with launches from the UK to Australia.

US ETF Launches

US Launches sponsored by STOXX
10 new ETF offerings were launched for the week, each with a distinct value proposition for investors. Detailed below are the respective launches from each asset manager.

Canada ETF LAUNCHES

Canada Launches sponsored by STOXX
A summary of the Canadian ETF launches that occurred in April 2024.
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