Global X has appointed a new portfolio manager to its ranks to drive innovation, coinciding with the recent launch of its latest investment product.
The exchange-traded fund (ETF) provider has welcomed Stephen Parker as a portfolio manager at the firm, where he will oversee product design and development, portfolio and risk management, trading and execution, as well as client reporting.
Parker brings nearly a decade of experience in financial services to his new position at Global X. This includes over six years spent at Coolabah Capital Investments in various analyst and portfolio manager roles. Prior to this, Parker was a trader at Star Beta, and also holds a PhD in Astrophysics and a Bachelor of Science (Advanced) from the University of New South Wales.
His background will position him to “uniquely to drive innovation and optimise portfolio performance,” Global X described.
“His strategic vision and deep understanding of market dynamics will be instrumental in enhancing Global X’s product offerings, equipping him to deliver superior returns to investors.”
According to the ETF provider, Parker’s appointment coincides with the recent launch of its latest investment solution: Global X Australian Bank Credit ETF (BANK).
The diversified solution is Australia’s first “three-in-one” passively managed package of senior bonds, subordinated bonds and hybrid securities, the firm stated.
It enables investors to combine three different fixed income security types dedicated to Australian banks across the capital stack into one cost-effective index-based product listed on the share market.
With fixed income ETFs capturing 43 per cent of net flows in 2023, Global X chief executive Evan Metcalf reflected on their noteworthy expansion.
“Fixed income ETFs have experienced a remarkable period of growth in Australia over the past year. The largest portion of these flows have been directed towards widely diversified solutions and ETFs focusing on floating rate notes, such as subordinated debt,” he said.
The trend demonstrates the widespread impact that rising interest rates have had on local investor sentiment, Metcalf added, sparking an increased desire to reduce the duration of portfolios and seek out appealing yields.
“With a growing appetite for more short-term fixed income ETFs in the Australian market, our ambition for BANK is to take advantage of this untapped potential, as we aim to target a duration of one to two years and a yield of 5–7 per cent.”
