Just Released: Indexing – A growing territory of Fundland

Index-tracking investment strategies are once again a hot industry topic, buoyed by the rapid ascent of exchange-traded funds (ETFs) to the top of the growth leagues in the retail investment funds industry. But the industry’s indexing footprint extends beyond the popular ETF vehicle. This passive strategy has been used by various investment funds and market-linked instruments for the better part of the past 30 years.

Myriad factors are driving the increased interest in indexing. The current expectations are for moderate capital market returns in years to come. This environment, aided by growing attention to the issue of fund fees and pricing by the regulators, is likely to encourage greater scrutiny of money management costs and the value of active management.

The current issue of Insight http://investoreconomics.com/issue/insight-advisory-service identifies and quantifies the various product structures through which retail investors are accessing indexed strategies. This research is focused on index- and benchmark-tracking investment funds—whether they are mutual, individual segregated or exchange-traded. The analysis monitors changes in the product structures, asset class mix, delivery and pricing, with a view to identifying the key trends in the industry’s usage of indexed mandates. Our Trend Lines article rounds out our coverage of indexing trends by documenting the indexed component of the market-linked note segment (market-linked GICs and market-linked notes). Posted by Goshka Folda goshka@iei.ca.