HEDGE FUNDS TO CREATE MORE ETFS
BlackRock anticipates that the global exchange-traded fund (ETF) market will grow by 20-30 per cent in 2010. In particular, in its August ETF Landscape report, BlackRock says it expects to see more hedge funds looking to create ETFs, with their own funds as the underlying exposure, in an effort to broaden their distribution capabilities. “It has become hard for participants in the financial markets to ignore a product category which broke through the $1 trillion assets under management milestone at the end of 2009,” the report said.
LYXOR UNVEILS NEW SECTOR ETFS
Societe Generale’s Lyxor Asset Management has listed 10 global sector ETFs on the London Stock Exchange this week, making it the first provider to launch a complete set of global sector ETFs in Europe. The 10 new ETFs track the MSCI World sectors including consumer discretionary, industrials, healthcare and financials. The funds are listed in both sterling and dollars and carry an annual total expense ratio (TER) of 0.45 per cent. Last week, it also listed five new Asia ex-Japan sector ETFs on the LSE, which have a TER of 0.65 per cent.
LAST DAY TO INVEST IN RBS UK AUTOCALL
Today is the last day of the offer period for RBS’s five-year UK autocall, which gives investors an opportunity to make a potential return equivalent to 12.30 per cent gross per year if the FTSE 100 is either above or equal to its starting index level on an early redemption date or on the expiry date. If the FTSE 100 has fallen to below 60 per cent of the starting index level and is below this point at maturity, the repayment of your capital will be reduced by the same percentage as the FTSE 100 has fallen over the term.