Ucits seek new ETF share class

Author: Danielle Myles | Published: 28 Jul 2015
Luxembourg funds have obtained approval to issue exchange-traded shares from existing Ucits

Recent rulemaking by the EU and UK have helped push a record $40 billion of new assets into European-listed exchange-traded funds (ETF) over the first half of 2015.

The sector’s exponential growth looks set to continue, with traditional fund managers seeking regulatory approval to issue exchange-traded shares from their existing Ucits [undertakings for collective investment in transferable securities] platforms.

Europe’s growth is part of a broader ETF boom. Consultancy ETFGI confirmed last week that the assets held by ETFs globally has for the first time exceeded those held by hedge funds.

Today, assets in European-listed ETFs total $500 billion. ETFGI founder Deborah Fuhr has predicted that will increase to $1.1 trillion in 2020 and $2.8 trillion by 2025.

Mutual fund providers in Luxembourg and Ireland – the continent’s two major fund centres – are finding...