POWERED BY MOMENTUM MEDIA
State Street Global Advisers to build Australian ETF offering
State Street Global Advisers intends to build its Australian suite of exchange traded funds (ETFs) by designing a new range of offerings to give investors access to different parts of the market, according to State Street's recently appointed head of exchange-traded funds for Asia Pacific, Frank Henze.
Henze stressed the firm's commitment to grow its suite of ETF products through innovation, but rather than releasing a whole suite of new products the firm would look to gauge the market's needs to ensure the products it released were suitable, he said.
The next offering would likely be a fixed income ETF, adding to the four products already in the Australian market - ETFs based on the S&P/ASX 200 and S&P/ASX 50 indexes, a listed property ETF benchmarked to the S&P/ASX 200 Listed Property Index and a high-dividend yield ETF based on the MSCI Australia Select High Dividend Yield index. The firm's 12 Asia-Pacific ETF offerings also include a further eight ETFs in Hong Kong, Japan and Singapore, he added.
The S&P/ASX 200 index is a core driver of ETFs in Australia due to its recognition among investors, recognised liquidity and confidence investors draw from that index in terms of being embedded within the infrastructure in Australia, Henze said.
ETFs would continue to grow in importance due to a renewed focus on transparency and liquidity, he added.
This would be particularly influenced by self-managed super fund and high-net-worth investors who were looking for simple and low-cost access to particular segments of the market, but Henze anticipated that those same factors would also appeal to institutional investors in Australia.
AUTHOR
Mike Taylor
Recommended for you
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
Big business has joined the chorus of opposition against the proposed Division 296 tax.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
37.15 3 y p.a(%)
3
GAM LSA Private Shares AU I
33.96 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
Plato Global Alpha A
28.73 3 y p.a(%)
