Exciting to see BlackRock recognizing the potential of indexing 2&20 strategies leveraging Preqin data. The promise of low-cost "investable indices" ETFs requires combining deep experience with cutting edge replication tech, the type we've been championing for years. https://lnkd.in/e2eEMuh8
Mike Chadney
6d
IIndexing” can’t handle illiquidity or non-market priced securities. The inevitable premium/discount cannot be avoided so an investable index would be impractical. The best way to take an illiquid underlying (PE or otherwise) is an investment trust. The premium/discount allows the market to price liquidity and valuations. ITs just need to be more cost efficient and the listing process massively simplified.
Andrew Beer
1w
Reminds me a bit of the investable #hedgefund index products of the early to mid 2000s. Hope they do a better job for clients....
Chief Investment Officer. Curiosity | Independence of Thought | Humility | Discipline | Patience | Courage
1wSaw it too, intriguing actually. Trying to get my head around it though. Listened to the conference call as well, still though unclear to me: does it mean creating an index like eg SPX for private equity and then an ETF on it eg SPY? That would mean that actually the ETF holds the underlying assets(?) which are LP positions in PE funds?