Dominic Lawson

Artificial intelligence-focused and big data funds represented more than half of inflows into European thematic exchange traded funds this year, according to data from Morningstar. The category attracted net inflows of €510mn in the six months to the end of June, after posting €60mn in outflows last year. The inflows represent 53 per cent of the €960mn brought in by all thematic ETFs in Europe. The growing interest in AI has also been seen in open-ended mutual funds, albeit to a lesser extent,…

Several firms with new exchange traded fund vehicles have yet to register their products in the UK due to Brexit-related regulatory delays. Amundi, Abrdn, BNP Paribas Asset Management and Axa Investment Managers have all launched Irish ETF umbrellas in the past two years that have yet to be registered in the UK. The funds were launched after the end of the Brexit transition period in December 2020, when it stopped being possible for EU funds to automatically get UK recognition under the Ucits…

Bitcoin exchange traded funds have grabbed the headlines in the US this year, attracting strong investor interest and — for a time — helping to drive the price of the world’s most popular cryptocurrency to record highs. Since January, when the US Securities and Exchange Commission approved “spot” bitcoin ETFs — which hold the actual currency, rather than futures contracts on it — 11 have been launched by firms including BlackRock, Fidelity, WisdomTree, and VanEck. And they have already amassed…

Schwab AM has no plans to launch EU-domiciled funds and EU rules inhibit the sale of US ETFs to retail investors

European bitcoin exchange traded products have suffered outflows every month this year, despite providers’ hopes being raised following the approval of spot bitcoin ETFs in the US. Bitcoin ETPs domiciled in Europe have bled $506mn since the start of this year, while other crypto ETPs attracted small net inflows of $42mn, Morningstar data shows. The price of bitcoin rose by approximately 40 per cent over this period. The findings come as crypto product providers seek to capitalise on institutio…

Ireland’s financial regulator is planning to review its rules on portfolio transparency for exchange traded funds, according to lawyers. The Central Bank of Ireland, which regulates Europe’s largest domicile of ETF assets, requires the products to disclose their full portfolio holdings daily, but this is seen by many as a barrier to the growth of active ETF investment strategies. However, Hazel Doyle, partner at K&L Gates, said the CBI has told members of the Irish asset management trade body…

Germany’s Baader Bank is entering the exchange traded fund market with a strategy that will use artificial intelligence to aid stock selection. The investment management arm of Baader plans to launch an “AI-enhanced” eurozone equities ETF that will trade on the Xetra exchange in Frankfurt, according to the fund’s supplement. The Ireland-domiciled ETF will use “a holistic AI-driven stock selection model” to generate returns in excess of a eurozone equity index developed by MSCI. The model has…

Vehicles’ relatively high management fees are still cheaper than average charged by funds of funds

UK asset manager becomes latest big-name house to embrace active ETFs

US version of proposed AAA CLO Ucits ETF had $12.6bn in assets at end of September