M&G Investments Unveils New Active Exchange-Traded Funds
M&G Investments has introduced an innovative array of active Exchange-Traded Funds (ETFs), marking a significant advancement in its strategic offerings.
The firm articulated that this initiative “underscores its commitment to satisfying the ever-evolving preferences of contemporary investors.”
The active ETFs are underpinned by a robust investment of £350 million from M&G’s Life business, benefiting several client funds as well as investments from the Multi Asset Range within Asset Management.
The inaugural collection of M&G’s Active ETFs will be overseen by its £137 billion Fixed Income division, featuring the M&G UK Index-Linked Gilts Active UCITS ETF, the M&G UK Gilts Active UCITS ETF, and the M&G US Treasury Bond Active UCITS ETF.
Management responsibilities for these funds have been assigned to Miles Tym and Rob Burrows.
Furthermore, the M&G Global Maxima Equity UCITS ETF, which will be managed by M&G’s £88 billion equities division, is slated for launch shortly, with Gautham Samarth and Michael Cook at the helm.
Joseph Pinto, chief executive of M&G Investments, remarked, “This represents a strategic milestone for M&G as we transition our active management acumen into the ETF arena with significant scale, merging precise portfolio construction with accessibility and efficiency for investors.”
He elaborated, “Our extensive track record in generating alpha through disciplined, research-driven methodologies positions us exceptionally to synthesize decades of active management experience within the active ETF framework.”
Pinto asserted, “We are entering this market with resolute conviction, deploying strategies that are unconfined by benchmarks and designed to adeptly navigate complexities.”
As the demand for flexible and high-quality investment vehicles escalates, he emphasized that M&G is poised to offer distinctive exposure while reinforcing its dedication to innovation.
Ciaran Mulligan, chief investment officer of M&G Life, expressed enthusiasm regarding the allocation to three of M&G’s active ETFs, each delivering focused exposure to different government bond markets.
“This strategy enables our multi-asset portfolios to leverage the alpha generated by our active methodologies, all while maintaining cost efficiency for our clients,” he added.
Mulligan also highlighted the structural advantages of ETFs, stating, “The ETF framework provides trading and liquidity efficiencies, rendering it a versatile option for both long-term investment and tactical maneuvers.”
He concluded, “By fusing the strengths of active management with the practical advantages inherent to ETFs, we are augmenting value for our Life business clientele, ensuring our portfolios remain agile and competitive amid the rapid shifts in today’s market landscape.”
Source link: Moneymarketing.co.uk.
