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“Price discovery is another plus, as
investors get exposure to bonds but
with the trading transparency of an
individual stock.”
- BRYON LAKE, HEAD OF INTERNATIONAL
ETFS, JP MORGAN ASSET MANAGEMENT
fixed income is labelled as one of
the biggest drivers in the growth
of bond ETFs, which are increas-
ingly used by a range investors
for a variety of different purposes
in portfolios. In some instances,
they are adopted as building block
exposures at the core of portfolios
or as more tactical trading vehicles
for the implementation of asset
allocation decisions.
66 // TheTrade // Spring 2018
“We’ve seen increased ETF usage across all client
channels, including platforms and independent
financial advisors,” says Bryon Lake, head of the inter-
national ETF business at JP Morgan Asset Manage-
ment. “In many instances firms are building out and
developing their platforms to support ETF trading in
response to burgeoning investor demand.
“While investors may be buying a single ticker
on-exchange, in reality they’re getting diversification
from a basket of bonds. Price discovery is another
plus, as investors get exposure to bonds but with the
trading transparency of an individual stock. A number
of asset managers running fixed income portfolios
may also use fixed income ETFs as a liquidity buffer.
You’ll see more work from us on this front, in terms
of product development, as we respond to growing
investor demand.”
Growing investor confidence
Greater cost and trading transparency resulting from