Funds Hub
Money managers under the microscope
Rude health, and a changing of the guard?
By Detlef Glow, Head of EMEA Research at Lipper. The views expressed are his own.
The European exchange-traded-fund (ETF) industry has shown some resilience in the face of questions about management practices raised by market observers like the Financial Stability Board (FSB) and regulatory bodies like the FSA in the UK.
The segment grew by 7.74 percent over the first seven month of 2011, with assets under management up by 17.20 billion euros to reach 239.37 billion.
This has come as some critics have characterised ETFs as a systemic risk for financial markets, due to the use of swaps to replicate the underlying index. Another risk that has been highlighted was the liquidity of some securities accepted as collateral to secure the positions in derivatives and for security lending strategies. Also raised was the outstanding short volume in some ETFs.
Morning line-up
Enlightening stories on the hedge fund industry from Reuters and elsewhere.
New hedge fund launches are smaller and cheaper – FT
Crispin Odey nets 30 mln stg – The Times
Lyxor hedge fund index up 1.1 pct – HedgeWeek
Q3 hedge fund starts exceeded closures – American Banker
