Candriam's Van de Maele: Self-indexing too complex from regulatory standpoint

Uses Solactive indices

Koen Van de Maele, global head of investment solutions at Candriam, has said external index providers still remain the best choice when it comes to benchmarking ETF products, rather than self-indexing, despite the firm designing its own benchmark methodology.

Speaking to Investment Week, Van de Maele highlighted a number of issues with self-indexing, including the strict regulations that come with it. Over the past year, there has been an increasing trend towards self-indexing ETF vehicles in Europe, with J.P. Morgan Asset Management and Franklin Templeton both launching products that track their own indices. Increasing number of ETF providers look to self-indexing to cut costs "Self-indexing is complicated from a regulatory point of view," Van de Maele commented. "To have Candriam as the index provider, you would need very strict Chine...