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iShares appoints fixed-income head amid ‘seismic shift’ in bond allocation
by Robert St George on Sep 12, 2013 at 14:44
A former Nomura managing director has been poached by iShares to develop its fixed-income ETFs in Europe, the Middle East and Africa.
Brett Olson has been appointed as head of fixed income for the region, a position newly created by iShares in response to changing demand for such products.
More than £3 billion flowed out of fixed-income ETPs globally in August, but one ray of light came from short-maturity funds, which attracted almost £2 billion in the month. So far this year such ETFs have gathered nearly £20 billion from those worried about duration risk.
‘Fixed-income ETFs have gathered strong assets over the last three years, but we’re now seeing a revolution in demand and in how they are being used,’ commented Joe Linhares, regional head of iShares.
‘A seismic shift is taking place. Institutional investors such as insurance companies are looking to hold more bond ETFs and fewer individual fixed-income securities, and at the same time retail investors are learning more about these funds and their benefits, which is further fuelling uptake.’
At Nomura, Olson was responsible for the sales of asset-backed securities and the distribution of illiquid debt instruments. Linhares commended his ‘excellent credentials in fixed-income structuring’.
Within iShares, he will coordinate fixed-income initiatives and products, reporting to Tom Fekete, recently installed as head of product development for EMEA, and David Heike, global head of fixed income.