Lee Kranefuss, former founder of iShares, has launched a new exchange-traded fund consolidation business alongside Rory Tobin, ex-international chief executive of iShares’.
ETF Opportunity Partners will use private equity backing to bring about greater consolidation in the exchange-traded fund (ETF) industry.
Kranefuss was global chief executive of iShares, retiring from the business in 2010 after its acquisition by BlackRock.
He says: “ETFs have been one of the most successful financial products of the past 50 years – bringing investors liquidity, diversification, low cost, and access to a wide range of asset classes around the world.
“While asset growth in the ETF industry has been tremendous, much more room exists to serve investors well through innovative ETF products and services.”
Rory Tobin says: “The global ETF opportunity is even greater today than at any time in the past ten years.
“Across Europe, Asia, and Latin America, there are exciting opportunities to bring ETFs to more investors in more countries with quality investment products that serve their requirements.”
Tobin adds: “We believe the industry will see significant change as investors and regulators demand greater fiduciary alignment between ETF providers and the ultimate investor.
“Too often there has been a lack of transparency in products sold as ETFs, and we expect a reshaping of the regulations and the industry for the benefit of investors globally.”