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Goldman Sachs Asset Management aims to become a “leading provider” active Exchange traded funds In Europe as groups of funds, including JPMORGAN, Schroders and Jupiter, they are preparing to spread throughout the market.
Hilary Lopez, head of the third party of EMEA wealth at Goldman Sachs Asset Management, said there is a “significant interest and demand” from the manager of wealth and private banks for active ETFs in Europe.
“We have invested significantly in our ETF resources to this region,” she added, noting that Gsam plans to launch another range of active ETF over the coming months. “We see a significant opportunity in active ETF. Our goal is to be the leading active provider of ETF in Europe. “
Stocks in ETFS trade on stock markets, which means that investors can access live prices during the day. ETF -these usually follow the index, such as FTSE 100 or S & P 500, up or down.
In the last decade, they have increased in popularity, partly due to low fees. Blackkck and Vanguard led to filling, and the ETF market increased to $ 13.8 globally.
But the so-called active ETFs are trying to beat the index, as funds managers can select certain shares or bonds and exclude others.
In the past week, Jupiter has entered the active ETF market, while Schroders revealed on Friday that he had submitted an offer of active ETF across Europe.
“What I know from our client engagement is that there is significant interest and demand in the active ETF,” Lopez said.
“Early days are in Europe, but what we have noticed last year was a record influx in this region. We could easily see these flows that double in the next two years.” Many of these active ETF will become available on investment places, like Hargreaves Lansdown, sources said.
However, the European market is small, with about $ 50 billion in assets under management.
Analysts are suspicious of the benefits that active ETF provides investors and notice that the product is another way for the fund groups to quack traditional mutual funds, many of which have suffered from the withdrawal of customers.
Kenneth Lamont, Director in Morningstar, said that “a rush of active etf seems more fear of disappearing than any distinct advantage of ETF, while using investors remain modest.”
“For many property managers, active ETFs offer a way to use internal expertise or repackage existing strategies to attract new investors through fresh distribution channels.”
Lamont noted that the European active ETF market remains less than 0.5 percent of the wider European funds market.
“In the United States, the active ETF partly flourished because of tax advantages over traditional mutual funds -a benefit that is not expanded to Europe,” he added.
Matthew Beesley, the Jupiter CEO, told the Financial Times that “it is a risk that if you sit there and do nothing, ETFS will continue to cannibalize the property held in traditional means.”
Traditional mutual funds have lost money for ETFs, as investors have opted for lower cost products. According to Network Calastone, retail investors withdrew 1 billion pounds from UK Equity Mutual Funds in January.
Property managers remain bulls and arrange multiple resources for growth in the active space of ETF. The survey of Janerson suggested that the active ETF market could grow to more than 1 NM to 2030.
Bryon Lake, CEO of Transformation at Goldman Sachs Asset Management, said that Europe is likely to “follow a similar pattern of USA” in terms of growth, noting that “it is not hard to say that the active ETF will grow fast”.
According to Morningstar, it flows into the European active ETF was amounted to €7.3 billion. In the last few months of 2024, compared to approximately around €70 billion. For traditional passive etf -in.
