Source has launched Europe’s first-ever Ucits exchange traded fund focused solely on financial technology companies.
The Source KBW Nasdaq Fintech Ucits ETF aims to track the KBW Nasdaq Financial Technology Index, which captures fintech companies publicly listed in the US.
The index currently has 50 constituents, from household names such as Paypal and Visa to newer entrants like point-of-sale payment app Square, with market capitalisations ranging from under $1bn to over $150bn.
The 50 companies are weighted equally to ensure performance comes from across the sector and is not dominated by the largest players.
The launch comes following a recent survey from Source to institutional investors. It revealed that nearly half (46%) of investors said they anticipate 2017 being a record year for investment in the fintech sector, but the same percentage said a lack of investment vehicles is a hindrance to getting more exposure to it.
The financial services sector identified as being most at risk from fintech disruptors was consumer banking (59%). This was followed by payments (43%), financial advice (30%), foreign exchange (30%), asset management (27%), wealth management (20%) and life insurance (20%).
Chris Mellor, executive director, equity product management at Source, said: “Fintech companies are reshaping every part of financial services, from consumer finance and payments to insurance and data processing.
“The growth of fintech accelerated after the financial crisis, when traditional financial services were under extreme pressure just as consumer behaviour was changing and technologies such as smartphones, cloud computing and big data were taking off.
“Faster, more efficient and more joined-up technology in the financial arena has driven stellar growth for fintech companies and this trend shows no sign of slowing.”
Turn on TV news market reports, flick to the financial commentary in the business pages, and more often than not those holding forth their views of the sector will be male.
Sometimes referred to as the ‘biggest manager you have never heard of’, Jonathan Boyd has caught up with PGIM for insight into its Europe region developments as part of global expansion