Canadian pension funds and professional money managers continue to increase their exposure to exchange-traded funds, mirroring the growing institutional uptake of ETFs elsewhere around the world, says a new study from Greenwich Associates.
“Increasingly, institutional funds and asset managers are viewing ETFs not simply as useful tools for making tactical adjustments to portfolios, but rather as efficient methods for implementing new investment strategies,” said the BlackRock Inc.-sponsored report, Canadian Institutions Look to ETFs for Both Strategic and Tactical Applications.
“In particular, ETFs appear to be steadily gaining traction in fixed income — a trend that could reflect investors’ search for better and more efficient approaches to the asset class in a shifting interest-rate environment.”
The study, which is based on interviews with 42 asset managers that actively manage money for institutional funds and six institutional funds, including corporate and public pensions, foundations and endowments, showed that more than 20% of…
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