Asian investors prefer physical ETFs

SpreadsheetThe majority of Asian investors, excluding those from Japan, prefer exchange-traded funds (ETFs) that physically replicate portfolios, according to a survey by Morningstar ETF Centre. Of those surveyed, 63% said they preferred physical replication to synthetic construction which involves derivatives. “Interestingly, the individual investors who participated in our survey appeared to be more receptive to using synthetic replication ETFs than the professional investors who took part,” a summary of the findings said. “Of those surveyed, 22% of current individual ETF investors stated a preference for synthetic replication versus just 8% of current professional ETF investors.” Equity ETFs, especially country-specific ones, are more popular than fixed-income ones. Morningstar’s analysts said this was particularly obvious amongst professional investors. Strategy-based ETFs appear popular amongst individual investors, with 56% of individual respondents telling Morningstar that they would likely hold ETFs tracking strategy indices in their portfolios. ©2012 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.