INNOVATION MEETS OPPORTUNITY

Gain broad, diversified exposure to global equity and fixed income to form the foundation of your portfolio

A large asset manager, managing a blend of index and active mutual funds, sought to differentiate their investment style while maintaining low tracking error.

The client adopted these enhanced ETFs as core components of their portfolios: 

• Take modest active risk relative to benchmarks
• Leverage AI and big data for insights
• Offer broad, diversified exposure in an ETF wrapper
• Provide consistent alpha with strong risk controls

ETFs enabled them to maintain benchmark alignment while subtly tilting toward outperforming factors and themes.

Short-term shifts in portfolio positioning made to capitalize on market opportunities or mitigate risks

A global asset manager was looking to express a tactical investment into China in response to short-term macroeconomic signals and policy shifts, and needed a fast, cost-efficient, and liquid way to implement this view without disrupting their strategic asset allocation.

The client allocated funds into an ETF that tracks the FTSE China A50 Index.

ETFs allowed the client to: 

• Achieve precise exposure to a targeted segment of the Chinese equity market
• Avoid the operational complexity and cost of direct stock selection
• Maintain flexibility to unwind the position as market conditions evolved

Maintain exposure in a liquid investment vehicle to meet cash flow needs

A large institutional investor was looking to maintain strategic asset allocation while managing short-term liquidity needs; they needed to reduce cash drag and preserve market exposure during a portfolio transition period.

They implemented a liquidity sleeve using equity and fixed income ETFs. This was done with the selection of ETFs with high liquidity, tight bid-ask spreads, and strong secondary market support. By doing so, they used ETFs as a temporary placeholder for target exposures while waiting to deploy capital into less liquid instruments.

ETFs allowed the client to: 

• Preserve beta exposure and minimize tracking error
• Reduce operational complexity and transaction costs
• Enable faster rebalancing and smoother capital deployment

Maintain exposure in a liquid investment vehicle to meet cash flow needs

A large institutional investor was looking to maintain strategic asset allocation while managing short-term liquidity needs; they needed to reduce cash drag and preserve market exposure during a portfolio transition period.

They implemented a liquidity sleeve using equity and fixed income ETFs. This was done with the selection of ETFs with high liquidity, tight bid-ask spreads, and strong secondary market support. By doing so, they used ETFs as a temporary placeholder for target exposures while waiting to deploy capital into less liquid instruments.

ETFs allowed the client to: 

• Deliver efficient, scalable access to a high-growth market
• Reduce operational burden and compliance risk
• Meet growing investor demand for India exposure

Combine financial goals with positive societal or environmental impact

An institutional investor wanted to align their core equity holdings with the low-carbon transition while maintaining benchmark-relative performance. They also needed to meet regulatory expectations under SFDR and ESMA while demonstrating a credible decarbonization strategy to stakeholders.

The client transitioned some of their AUM across ETFs with sustainable strategies, including those (or some) that align with the EU Climate Transition Benchmark (CTB) framework. They also adjusted fund names and investment methodologies to reflect sustainability objectives more clearly, while integrating top-down and bottom-up decarbonization metrics, including exposure to renewable energy and critical minerals.

ETFs allowed the client to:

• Achieve regulatory alignment with SFDR and ESMA naming guidelines
• Deliver measurable sustainability outcomes while preserving investment performance
• Strengthen trust and brand positioning as a sustainability leader

This reflects how ETFs can be used as scalable, transparent tools for implementing sustainable investment mandates.