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ETFS Launches Custom ETF Service

Rachael Revesz


[This article originally appeared on our sister site, IndexUniverse.eu.]


ETF Securities has launched a service for asset managers worldwide to build custom exchange-traded funds (ETFs), convert UCITS funds into ETFs and white label funds for their investors.

CANVAS, launched today, is a platform for asset managers to customise ETFs and bring more choice to investors. The platform will offer passive and active managers access to customised ETFs which either synthetically or physically replicate securities listed in Europe.

CANVAS will offer a range of services including the full development or management of an ETF, bringing products to market and dealing with regulators. It can add an ETF share class to a UCITS fund, convert existing UCITS funds into an ETF and set up a bespoke ETF platform for a client.

The global ETF industry is estimated to grow from $2 (€1.5) trillion to over $3 trillion by 2015. Chief executive Graham Tuckwell said many asset managers recognised the growth potential of the ETF industry but did not have the expertise or resources to build their own products.

“CANVAS provides an easy and efficient way for them to launch ETFs, relying on ETF Securities’ years of expertise and infrastructure. To date we have already received strong interest from asset managers in Europe, the US and China,” he said.

ETF Securities intends to re-brand its range of 16 ETFX equity products over the next few months.

Matt Johnson, head of distribution for Europe, Middle East and Africa (EMEA) at ETF Securities, said asset managers could either white label funds or co-brand their products.

“For example, there might be a US asset manager who has a great idea and wants to raise assets from European investors with European products, but they see regulations that are completely new, multiple languages and so on, and they realise it’s difficult to do this on their own,” he said. “They can partner with us: we are independent and open architecture which puts us in completely different position.”

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