ANZ make ETF play via joint venture
ANZ has become the first bank to move into the provision of exchange traded funds (ETF) and has set up a joint venture company to initially offer six ETF products via the Australian Securities Exchange (ASX).
The new company, ANZ ETFS Management (ANZ ETFS), has been formed after the bank teamed with London based exchange traded product provider ETF Securities and will be staffed by executives from both organisations.
ETF Securities Head of Australia and New Zealand, Danny Laidler, will co-lead the Sydney based company with as Co-Head and Head of Distribution alongside ANZ Global Markets Director of Business Execution Adam Smith who will be Co-Head and Chief Operating Officer of the joint venture.
The six ETFs will be offered to financial advisers and investors with three of them to be based on S&P Dow Jones Indices — the S&P ASX 100 Index, the S&P 500 Low Volatility High Dividend Index and a new S&P/ASX 300 Shareholder Yield Index, with the latter covering Australian listed companies with high shareholder yields.
Three other ETFs will be offered as a physical US Dollar ETF, a physical offshore Renminbi ETF and a physical gold ETF, with further ETFs to be in Australia and other Asia-Pacific markets.
ETF Securities chair Graham Tuckwell his group has teamed with ANZ because interest in ETFs had hit record levels in the past year after a slow start in which Australia had been among the early adopters of ETFs in the early 2000's but had seen other markets adopt them in greater numbers over time.
AUTHOR
Jason Spits
Recommended for you
Janus Henderson is actively seeking to partner with private wealth firms in Australia as it looks to expand its number of strategic partnerships, as well as focus on retirement income product development.
Global investment manager First Sentier Investors has launched an umbrella brand to provide greater clarity around its shift to a multi-affiliate asset manager encompassing six investment teams.
Janus Henderson has seen intermediary outflows in the second quarter of US$1.2 billion, although its deal with insurer Guardian means overall net flows are US$46.7 billion.
Infrastructure assets are well-positioned to hedge against global uncertainty and can enhance the diversification of traditional portfolios with their evergreen characteristics, an investment chief believes.
