Eurizon SLJ Capital, the London-based investment manager of Eurizon, the €384bn (AUM as of 31 March 2024) asset management company of the Italian bank Intesa Sanpaolo, has launched its first Irish-domiciled actively managed ETF with Connect ETFs, a new ETF platform connecting asset managers with ETF service providers.
The platform uses Carne Global Fund Managers (Ireland) as management company and Citi as administrator, custodian, and depositary.
The new actively managed ETF, the CO Eurizon SLJ EM Bond Strategic Income UCITS ETF ($102m AUM as of 17 July 2024), which has no benchmark, aims to provide emerging market income with developed market risk characteristics through a quality-enhanced investment process.
It is managed by Eurizon SLJ Capital’s London-based team led by Stephen Jen (CEO & co-CIO) and Fatih Yilmaz (co-CIO). Eurizon SLJ Capital has a long-standing reputation for orthogonal thinking and a research-led approach to emerging market investing. The fund is listed on the Irish Stock Exchange and is expected to launch on the London Stock Exchange in late 2024.
Matt Jones (pictured), head of distribution for Eurizon SLJ Capital said: "Our quality-enhanced active EM bond ETF offers investors a transparent, cost-effective, and flexible access to EM bond income with developed market risk characteristics, managed by a diverse team and backed by our research-led approach to investing. It is an exciting time for active ETFs in Europe, and we see growing demand for high-conviction bond ETFs, either as a complement to passive funds or an outright allocation."
"The Connect ETFs platform is the ideal solution for our entrance into the active ETF market. Their expertise from product design to distribution is very attractive and enables us to focus on creating value for investors."
The Connect ETFs platform enables investment managers to bring their investment strategies to market as a UCITS ETF efficiently and cost-effectively. This allows investment managers to focus on adding value to investors through portfolio management, whether active or passive, fundamental research-driven or quantitative/AI-based. Connect ETFs' integrated platform offers a comprehensive suite of services essential for the successful launch, management, and distribution of European ETFs.
Danny Dolan, a director of Connect ETFs ICAV said: "Connect ETFs is focused on delivering client-focused success and assets for our clients. Eurizon SLJ Capital has trusted Connect with their first ETF and that is our ultimate accolade. Connect ETFs understand clients have a choice and any success Connect achieve is our clients' success.”
Patrick O’Brien, head of business development at Carne said: "We’re delighted to be collaborating with Eurizon SLJ Capital and Connect ETFs to support the launch and operation of this new fund with a tailored suite of management company services encompassing risk, governance, oversight, and compliance."
"As the European market for active ETFs grows at pace, asset managers are increasingly collaborating with third-party specialists to unlock faster, more cost-effective routes to market, while offering investors access to new opportunities through cost-efficient, risk-optimised investment solutions. Our partnership with Connect ETFs is testament to this and to our broader pursuit of driving innovation and excellence in fund management.”
Gareth Myburgh, Head of ETF Services for Europe, Middle East and Africa, Securities Services, Citi said: “With the underlying secular shift toward ETFs, we continue to grow our ETF businessthrough close collaboration across the firm. This collaboration allows us to support the full spectrum of end-to-end needs for ETF issuers and investors across the entire ETF lifecycle.
“We are proud to be part of this initiative, supporting Eurizon SLJ Capital and Connect ETFs through the provision of our next-generation, end to-end ETF solution.”
