Issue link: https://maltatoday.uberflip.com/i/748968
maltatoday, WEDNESDAY, 9 NOVEMBER 2016 17 Events Thousands walk and run for the President's Solidarity Fun Run ON Sunday, thousands of walkers and runners made their way from University, Santa Venera, Paola and Rabat to St. George's Square in Valletta, to form a joyous cho- rus and a fantastic atmosphere during the eight edition of The President's Solidarity Fun Run, supported by Banif Bank. Organised by the Malta Com- munity Chest Fund Founda- tion and Sport Malta, this an- nual event has become a mainstay event, raising considerable funds for the Malta Community Chest Fund Foundation, which extends its support to charitable institu- tions and individuals and sectors in need. Banif 's support of Fun Run dates back to its inception, with philanthropy, health and wellbeing forming a strong part of the Bank's social responsibility efforts. "The enthusiasm and generos- ity of the Maltese people shines bright as we unite under the ban- ner of 'One Nation, One Heart- beat' to raise funds for such a wor- thy cause," Dr Michael Frendo, Banif Bank Chairman said. "On behalf of Banif, we would like to thank all those who walked and ran in the name of solidarity. For the past eight years we have kept up our commitment to the MCCFF, inspired always by the solidarity shown by the Maltese people! Well done and thank you to all involved! " Exchange-traded fund market set to nearly double by 2020 STRONG growth in exchange- traded fund (ETF) assets is expect- ed to continue with assets under management (AuM) on track to reach US$6t in value by 2020, ac- cording to EY Global ETF Survey 2016 Integrated innovation: The key to sustainable growth. This predicted growth follows a decade of growth in the industry, averaging 21.5% per annum and with AuM valued at US$3.4t as of August 2016. Ronald Attard, Country Manag- ing Partner for EY Malta and CSE TAS Leader, said "All three themes listed below seem to focus around one central element, that of con- stant change due to innovation. Countries need to be constantly on the ball in order to attract inves- tors and look out for what's new. On the other hand, competition is getting more intense as there are countless opportunities for new entrants in the market, resulting in challenges to deliver continued expansion and achieve scale." As the industry grows, how- ever, it is becoming progressively more difficult for firms to deliver continued expansion. The report identifies product development, market entry and digital disrup- tion as particularly important spaces to apply an integrated ap- proach to innovation in order to achieve sustainable growth in the industry. Attard said product development continued to grow in importance in the ETF industry. And yet the majority (64%) of providers expect new products to become less suc- cessful in the future. The contra- diction stems from the fact that product supply is reaching a satu- ration point. The growth of more complex ETFs is making it more difficult for promoters to test new products — especially when the focus remains on speed to market rather than building a tailored ap- proach to innovation. The rapid growth of ETF assets continues to attract new entrants to the industry. Ninety percent of survey respondents expect more new players to enter the market and, in the US, the figure is 100%. Respondents identified active managers (22%) and asset manag- ers with no current ETF offering (20%) as the type of promoters likely to enter the market in the next two years. Geographically, Asia-Pacific remains the most popular target, particularly among US respondents, but also for Euro- pean and Asia-Pacific promoters with 41% of respondents planning expansion in this market. Julie Kerr, EY Asia-Pacific ETF Leader, said: "Market entrants — whether established ETF issuers or industry newcomers — need to overcome a lack of scale, distribu- tion and branding in any new mar- ket. We're seeing providers pursue innovative options to confront these challenges, from collaborat- ing, sub-advising or using existing ETF platforms." The report revealed that, despite the finding that 74% of respond- ents have little appetite for acquisi- tion-led growth, larger promoters continue to acquire smaller ones in many ETF markets. And 60% of those surveyed expect to see fur- ther consolidation over the next two years. Digital distribution The ETF industry lags behind when it comes to innovative distribution models. Only 10% of survey re- spondents believe their distribu- tion model is suitable for today and the future, compared to 20% who view it as outright insufficient. The emergence of robo-advisors — an online wealth management service that provides automated, algorithm-based portfolio man- agement advice without the use of human financial planners — as a scalable retail channel could change this picture. Eighty-eight percent of respondents expect robo- advisors to accelerate ETF growth. And nearly half (45%) think robo-advisors will deliver in excess of 10% of annual inflows within three to five years. The re- port suggests promoters will need patience to realize long-term ben- efits, however. Matt Forstenhausler, EY Global ETF Leader, said: "The industry needs to embrace digital innova- tion — and investors' appetite for digital technology — to define a new distribution model. Smart firms will be those that address immediate and long- term chal- lenges to offer existing and future customers an improved, integrat- ed approach. Taking control of the digital agenda means ETF provid- ers will not only continue grow- ing but do so in a way that lays the foundation for sustainable profit- ability."