Exchange Traded Products & Indexing Guide Switzerland 2013

alain Picard joined sIx swiss Exchange as
product manager in 2001, following many
years in banking. In recent years, alain has
played a defining role in the development
and marketing of the ETF segment, as well
as maintaining relationships with product
issuers and market makers. Furthermore,
he was responsible for the introduction of
new financial product segments, such as
"ETPs" in 2010 and "sponsored Funds" in
2013. since 2011, alain has headed up the
product management of all trading seg-
ments, as well as the vocational training of
traders. he holds a Bachelor of Business
administration, as well as a Masters of
advanced studies (Mas) in Private Ban-
king & Wealth Management; both of which
were obtained from swiss universities of
applied science. alain is co-author of the
ETF guide, which was published in 2010
by sIx swiss Exchange and Finanz und
Wirtschaft. In addition, he is a member of
the ETF Expert committee of the swiss
Funds association.
developments, innovations in the so-called "intelligent indices",
also known as smart beta, should continue to evolve.
Is it not true that, in some instances, smart beta
is now being misused as a marketing gimmick?
For professional investors, smart beta is certainly an interesting
concept. Of course, not all asset-weighted indices are,
in reality, "intelligent". I believe that innovative products serve
the market very well in any case. Time will tell whether or
not they are successful in establishing a place in the market.
Are price wars between certain companies offering
ETFs advantageous to investors, or in the end, is
this just cross-subsidisation of flagship products?
Fees are a pivotal decision-making criterion. In this regard,
ETFs have a proven track record. The question can be posed
whether or not, in the long term, a difference in price
of say 5 basis points for management fees will make a difference.
When contemplating ETFs, one should also consider
other attributes of the products, such as accurateness of
the index reproduction and the fees associated with the
buying and selling.
36 ExchangE TradEd ProducTs & IndExIng guIdE Switzerland 2013
Which projects are to be undertaken in
the ETF segment of the SIX Swiss Exchange
in the near future?
We wish to continue to engage additional market makers for
each ETF. This improves the spreads, which is an important
component in the determination of fees; thus, achieving a
positive effect for investors. As well, we wish to increase
general public awareness of ETFs. As such, we support an
independent initiative, which is aimed at private investors;
namely, the ETF ambassadors.
Do you have investments in ETFs in your
personal portfolio?
Of course I do. Otherwise, it would be rather paradox or, to
use an in vogue colloquialism, I would feel like ‘a bit of a
vegetarian butcher’. As a small investor with a need for high
levels of security, ETFs make a lot of sense. I have a large
range of products from which to choose. With little fuss, I am
able to economically create a diversified portfolio, which can
be easily restructured at any time.
Many thanks!
"For professional investors, smart beta
is certainly an interesting concept."