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iShares wrap platform ETF assets pass £1bn on RDR boost
by Robert St George on Nov 04, 2013 at 10:08
There has been a significant increase in the amount of money wealth managers devote to exchange-traded funds (ETFs) this year, iShares has reported.
The ETF provider recorded £1.05 billion of assets held across the major wrap platforms at the end of September, 23% more than was invested in them at the turn of the year.
‘Financial advisers are becoming much more comfortable with how ETFs work and how they can be used in client portfolios,’ commented Pollyanna Harper, head of UK intermediary sales at iShares.
‘This trend is partly due to the changes brought about by the retail distribution review, but equally there is much more information available now to investors and advisers alike. As a natural consequence, we’re seeing more advisers pick ETFs as a cost-efficient way of allocating to asset classes and wrap platforms are an ideal and highly effective way of accessing them.’
Andrew Smith, chief operating officer of AXA Wealth Elevate, confirmed the trend: ‘We’ve seen a steady growth in the number of advisers looking to use ETFs, and expect this to continue as the industry further evolves towards a new model for advice and fees.’
Corporate bond ETFs were the most popular category during the third quarter of this year, attracting inflows of £56 million, with short-duration funds winning the bulk of the money.