The seismic shift from active to passive management spells significant implications for traditional investment managers.
In the third part of our ‘what to look out for in 2020’, we ask industry experts’ for their input on investment in the securities services industry.
State Street says it now administers nearly 70% of US ETF assets under management after a series of mandate wins.
The new ETF structure could encourage asset managers who have, in the past, shied away from passive investing to transition.
The win further strengthens State Street’s position as the largest asset servicing provider for exchange traded funds (ETFs).
Europe's largest asset managers are working towards launching new and transitioning current Irish-domiciled ETFs to an ICSD settlement structure.
A recent report suggests managers face very little time to select an alternative for Irish-issued ETFs that are still settling in a domestic model.
The mandate allows the Japanese-based firm to use BNP Paribas's single custody and fund services model across its full fund range.
Greater acceptance of ETFs as collateral is one way of fully unlocking ETF inventory for market participants.
The new mandate resulted in the transfer of 53 mutual funds and ETFs to Citi, following a recent acquisition from client Victory Capital.