Schroders is “looking” at active ETFs as the arms race for liquid active products hots up, ETF Stream understands.
The British asset management giant would be one of the most high-profile firms to enter the active ETF fray. Its mutual fund business houses £107.8bn in assets under management (AUM), according to its half-year results, approximately two-thirds of which – around £66bn – is attributable clients domiciled in the UK and Europe.
A spokesperson for the firm commented: “As the industry evolves and the type of fund structures expands, we are constantly reviewing what is optimal for our clients and most effective for managing their investments.”
As such, Schroders is “looking” at active ETFs and will consider launching them “if the new fund structure makes sense for our clients.”
The news follows a flurry of recent launches in the space. Robeco unveiled a four-strong suite of active equity ETFs, Janus Henderson launched a high-conviction Japan equity strategy and an active bond fund from Jupiter Asset Management is on the way.
White-label platforms are sensing opportunity, with Citigroup entering the tussle to help active managers enter the ETF market.
There are regulatory tailwinds, too. The Central Bank of Ireland (CBI) recently announced its intention to allow mutual fund managers to launch listed share classes of Irish-domiciled funds, rather than build a separate platform for their ETF offering.
The move is designed to make entering the ETF market “more realistic.”
While active ETFs are enjoying strong growth, they remain a small part of the broader European ETF market – just 2.2% of AUM as of 30 September, according to Morningstar data.
