Novia adds State Street ETFs to platform

Novia has added State Street Global Advisor’s (SSgA) range of SPDR exchange traded funds (ETFs) to the platform.

The physically-backed equity and fixed income ETFs are available through the Novia wealth management service following their recent introduction to the UK market.

"UK investment into ETFs continues its upward trend and, with RDR coming up, interest in these types of investments via platforms will increase further amongst advisers and their clients due to the transparency and cost effectiveness of their pricing structure," said SSGA head of intermediary business for Europe, Middle East and Africa Vin Bhattacharjee.

The ETFs available on the platform include two equity funds, five emerging market vehicles and two fixed income funds. 

Novia said it is the first UK platform to offer SSgA's range of SPDR ETFs.

SSgA is the asset management business of State Street Corporation, a provider of financial services to institutional investors. SPDF is the ETF platform of SSgA.

"Novia are pleased to be associated with SPDR ETFs which has a very strong global reputation and we feel this will strengthen the platform's cost effective ETF offering substantially," said Novia investment analyst Scott Beasley.

ETFs have gained increasing prominence over recent years because of their ability to offer passive management at an attractive price and attract investors seeking lower charges and access to a wide variety of global assets.

But amid their rising popularity, the FSA has recently highlighted concerns over the products and, in particular, the synthetic versions of the funds.

In its February Retail Conduct Risk Outlook paper the regulator expressed its concerns about advisers' understanding of ETFs as take-up of the products rises in the lead-up to RDR.