ETF Securities and Lombard Odier Investment Managers have listed four fixed income smart beta ETFs on Borsa Italiana.
It includes the Euro Corporate, Global Corporate, Global Government, and Emerging Market Local Government Bond Fundamental ETFs.
These were listed on the London Stock Exchange and Swiss SIX Exchange last year, drawing over $225m in assets under management.
Massimo Siano, head of Southern Europe, ETF Securities (UK) said: “We’re very pleased to be listing these ETFs on the Borsa Italiana. Italy is an important growth market for us and we are fully committed to making our products accessible to all investor types.
“With bond liquidity increasingly being a source of concern for investors, investors in ETFs have extra liquidity support from the secondary market to help mitigate this. This liquidity support coupled with the ability to trade intraday makes the ETF an ideal access route into fixed income at a time when liquidity matters.”
Jérôme Collet, senior portfolio manager, fundamental fixed income at Lombard Odier IM commented: “Central bank intervention to fulfil economic objectives has fundamentally altered fixed income markets. The sustained use of quantitative easing, coupled with low interest rates forces investors to look afield for yield.
“Furthermore, they are facing unrewarded risks arising from increased herding and tighter regulations. Given the backdrop of sustained disinflation, low economic growth and heightened concern around liquidity, it is time for investors to redesign their fixed income exposure and to pay attention to the fundamental long-term quality and liquidity of bond investments.
“Rather than accessing opportunities through traditional market-cap benchmarks – which tend to reward leverage and can create bubbles, instead focus on the credit quality of liquid issuers at a reasonable price.”