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Marianne Brown
Traders Magazine Online News

The Surprising Factor Financial Firms Need to Invest in To Accelerate Growth

When it comes to people, a firm's success relies on more than just the top contributors to the bottom line, according to FIS. In its latest report, shared with Traders Magazine, the firm says it actually found firms that are prioritizing investments in digital expertise are growing nearly twice as fast as their peers.

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In your opinion, what is the biggest hurdle facing the blockchain?

Cost of implementation

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Too many systems available

23%

Not applicable to my business

3%

Uncomfortable with the technology

33%

Nobody else is using it

23%

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February 18, 2010

Cover Sidebar: It's All Relative

By James Ramage

Institutions have increased their usage of ETFs because they want quick and cheap exposure. More specifically, ETFs work well with some of their portfolio strategies.

In the last couple of years, active managers haven't done much better than their passive brethren, said Terry Ransford, director of trading at Northern Trust Securities Inc., the broker-dealer subsidiary of the giant asset manager. Thus, more active managers have found a place for relative return in their portfolios.

Relative-return strategies are benchmarked to an index--letting the portfolio perform relative to, say, the S&P 500. And every index ETF is, by definition, a relative-return strategy. So managers who want to acquire relative return as cheaply as possible have been looking to ETFs, because of the lower fees.

ETFs are also a natural fit for transition management, Ransford said. A foundation, endowment or pension plan that decided to terminate a manager could easily tender his assets for an ETF, because the exposure is quick and the ongoing management fee of the ETF is lower.

 

See Cover Story:

Filling the Void

 

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