ASI launches suite of index trackers to capture 'advances in passive'

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ASI launches suite of index trackers to capture 'advances in passive'

Aberdeen Standard Investments has launched eight low-cost index trackers across equities and fixed income in response to client demand for "the latest advances in passives and wider quantitative investing".

The three equity and five fixed income products, which are available exclusively on the Standard Life Wrap and Elevate platforms, will be managed by the 30-strong Quantitative Investment Strategies (QIS) team.

Funds are weighted by the QIS team according to the market capitalisation of each company or outstanding debt of each company or country in the benchmark index, using a "scalable, repeatable and risk-controlled" process.

Global head of quantitative investing at ASI Sean Phayre said: "We are increasingly experiencing client demand to make use of the latest advances in passive and wider quantitative investing.

"Both areas play key roles in efficient portfolio construction and risk management."

The funds launched are:

  • European ex UK Equity tracker fund, which tracks the MSCI Europe ex-UK index and charges and AMC of 0.03%.
  • US Equity tracker fund, which tracks the S&P 500 and also charges an AMC of 0.03%                                        
  • Japan Equity tracker fund, which tracks the MSCI Japan and charges an AMC of 0.05%
  • Short Dated Global Corporate Bond, which tracks the Bloomberg Barclays Global Aggregate Corporate 1-5 yrs Total Return Index (GBP hedged) and charges 0.07%
  • Short Dated Sterling Corporate Bond, which tracks the Markit iBoxx GBP Non-Gilts 1-5yrs Total Return index and charges 0.03%
  • Global Index-Linked Bond tracker fund (GBP hedged), which tracks the Bloomberg Barclays World Government Inflation-Linked Bond All Maturities Total Return index and charges 0.07%
  • Short Dated Global Index-Linked Bond tracker fund (GBP hedged), which tracks the Bloomberg Barclays World Government Inflation-Linked Bonds 1-10yrs index and charges 0.07%                                                 
  • Emerging Market Local Currency Bond tracker fund, which tracks the JP Morgan GBI-EM Global Diversified index and charges 0.1%.                                                                                                                                                            

Head of UK propositions at ASI David Tiller said: "Since taking the lead in platform unbundling and 'superclean', Standard Life has a track record of actively negotiating with investment managers to secure greater fund choice for advisers using Wrap and Elevate.

"Today, more advisers are looking for flexibility to make the right active decisions while 'cost balancing' their portfolios using an index fund allocation."Being able to secure favourable terms for index funds means advisers and discretionary managers have more freedom to allocate to the best opportunities for their clients."