While a vast majority of European traders has witnessed a shift from active towards passive investment vehicles, only a minority believe that this trend could be positive for their companies, a recent survey conducted by SIX Swiss Exchange revealed.
According to the poll, conducted among 185 traders across Europe, 88% of respondents have seen a shift from active to passive and 72% expect this trend to intensify next year.
At the same time, only 40% of respondents believe that the changes resulting from the growth of passive investments will have a positive impact on their companies.
Traders identified cost pressures as the key reason for the growth of passives (%44), followed by the planned introduction of Mifid II (31%), while the trading environment was only seen as a secondary factor (17% said it contributed to the trend).
The survey also revealed that traders saw regulation as the single biggest challenge they faced, according to 73% of respondents.
When it came to identifying factors driving their trading activity, 46% of respondents cited the European Central Bank interventions as key factor, followed by the introduction of Mifid II (24%), the effects of Donald Trump’s presidency (16%) and Brexit (11%).
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