FX brokers should be opening new funds and taking their share of this burgeoning market
FX brokers could easily show some of the established wealth managers a clean pair of heels, so why are the wealth managers opening new and diverse funds all the time for astute clients and FX brokers still churning old novice leads?
Multi asset trading is now in full swing and very much in demand by investors and self directed traders alike.
It has been quite clear recently that FX brokers and electronic trading companies servicing a retail audience have a definitive need to go down the multi asset route, and can very easily rival the established hedge funds and wealth managers, in many cases offering higher technology and more efficient execution.
Whilst many retail brokers notice their margins ever tightening and witness the ever decreasing circles of lead buying and attempting to actively sell to low deposit / low lifetime value spot FX traders, the wealth managers are in full swing, opening new funds all the time.
Today, further funds join the fold as Close Brothers Asset Management has launched two new sustainable funds amid growing demand from investors and clients.
The asset manager has today launched the Close Sustainable Balanced Portfolio Fund and the Close Sustainable Bond Portfolio Fund, which will be actively managed.
Fund managers are increasingly offering new sustainable funds as appetite among investors grows amid the climate crisis.
Recent figures from the Investment Association showed that responsible and sustainable funds in the UK reached a high of £33bn, a 89 per cent rise since the end of 2019.
Martin Andrew, chief executive of Close Brothers Asset Management said: “Investors and clients are becoming more aware of how their money can affect the world around them and increasingly want to invest in ways that reflect their concern and respect for the natural environment, for human dignity and for responsible corporate behaviour. We are launching these new funds to meet this demand.”
The Close Sustainable Balanced Portfolio Fund will be managed by head of funds Riitta Hujanen and investment manager Richard Stroud, and invest in shares, bonds, alternatives, ETFs, and third party funds.
The Close Sustainable Bond Portfolio Fund will be managed by invest director Andrew Metcalf and investment manager Eran Hasson. The fund will invest in bonds, third party funds, and other fixed income securities.
The announcement comes just a day after investment platform AJ Bell announced the launch of its Responsible Growth Fund, which will invest in ETFs which remove stocks from controversial companies such as tobacco and alcohol.
“Once these companies are removed, companies that have strong ESG factors are included to give a diversified exposure to different regions and sectors, with better than average impact on both people and the planet,” AJ Bell said.