ANZ leads local ETF charge

ANZ has teamed up with London-based ETF Securities to form a joint venture that will look to tap into the multi-billion dollar exchange traded fund (ETF) market in Australia.

The new entity -- to be known as ANZ ETFS Management -- will list a range of six new ETFs on the Australian Securities Exchange over the coming weeks.

"The products are designed to be transparent and cost-effective building blocks for investment portfolios, providing exposure to commonly traded equity, commodity and foreign exchange benchmarks," ANZ said in a statement.

Three of the six ETFs will be tied to either the Australian or US equity markets, while the other three comprise a physical US dollar ETF, a physical offshore renminbi ETF and a physical gold ETF.

Gold bullion for the physical gold ETF will be stored at ANZ’s vault in Singapore, while further products and additional asset classes will be added over time, likely in other Asia Pacific markets such as Hong Kong.

The JV marks the first entry into the local ETF market by a major Australian financial institution. It will be based in Sydney and include employees from both ANZ and ETF Securities.

ETF Securities’ head of Australia and New Zealand, Danny Laidler, has been appointed co-head and head of distribution at ANZ ETFS, while Adam Smith, currently director of business execution at ANZ Global Markets, has been appointed co-head and chief operating officer of the JV.

ANZ Global co-head of fixed income, currencies and commodities, Eddie Listorti, said the partnership unites ANZ’s extensive knowledge of Australian financial markets and the domestic investment base, with ETF Securities’ expertise in constructing and operating ETF products.

"ANZ ETFS’ objective is to provide a range of high quality and low cost investment products that will in time provide diversified exposure to all major asset classes," he said.

The bank's chief executive of global wealth Joyce Phillips said ETFs were increasingly being used by customers as an important, often tactical, part of their portfolios.

"ANZ Wealth will continue to offer these, as part of innovative investment solutions, to our customers," Ms Phillips said.