The European Fund and Asset Management Association (EFAMA) does not expect a significant expansion of asset classes eligible under UCITS following the European Securities and Markets Authority’s (ESMA) review which launched in May this year.
EFAMA deputy director Federico Cupelli suggested only a “gradual opening-up” might occur, despite initial expectations that the review could include assets such as cryptocurrencies and commodities.
EFAMA highlighted the importance of maintaining the UCITS brand reputation for security, diversification, liquidity and transparency, arguing against immediate, broad changes to the Eligible Asset Directive (EAD).
EFAMA also noted that while crypto assets were a focus, their inclusion under UCITS would be complex and not immediately pressing, given indirect access is already available through exchange traded products (ETPs).
Tussle for active ETF talent continues
This week also saw Fidelity International hire Roxane Philibert as ETF product specialist from BlackRock as the industry continues to see a reshuffle of active talent.
In Philibert’s new role, she will focus on supporting the growth of active and index ETFs across Europe.
The tussle kicked off last year when Robeco appointed Nick King from Fidelity to lead its entrance into the European ETF market.
Last month, Robeco poached Dorcas Phillips as head of ETF capital markets from Fidelity International ahead of the firm’s entry in to active ETFs later this year.
DWS China ETF reshuffle
Finally, DWS launched a China ETF while excluding the region from its emerging markets ETF in the same week.
The German asset manager launched a synthetic China mid-cap ETF - Xtrackers CSI500 Swap UCITS ETF (XCSI) – tracking the CSI SmallCap 500 index which captures 500 medium and small cap China-listed companies.
Shortly before, DWS switched the index of its $56m emerging markets ETF to exclude China in a bid to meet investor demand for more “regionally differentiated investments”.
ETF Wrap is a weekly digest of the top stories on ETF Stream
