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Introduction of the Active Index Mandate at ABN AMRO MeesPierson

Press Release

ABN AMRO MeesPierson is introducing the Active Index Mandate, the bank’s first discretionary mandate to invest primarily in exchange-traded funds (ETFs) and index funds. The mandate is designed for investors seeking diversified and cost-efficient access to the global financial markets.

According to Rudy Vermeersch, Head of the Investment Centre at ABN AMRO MeesPierson Belgium, the Active Index Mandate gives investors the opportunity to benefit from the expected market-based growth while keeping management costs down at the same time. ‘It’s a simple strategy that tracks the market, allowing investors to rely on returns in line with it,’ says Vermeersch.

‘The Active Index Mandate offers diversification through exposure to a variety of asset classes, regions and sectors. We actively manage it to strike an optimal balance between risk and return by adjusting the weightings between different asset classes and fine-tuning the ratios between bonds and regional equities. The mandate also offers simplicity, transparency, high liquidity and a diversified portfolio, making it ideal for both experienced investors and newcomers looking to strengthen their investment strategy.’

With six different risk profiles, ranging from very defensive to very aggressive, the mandate can be precisely tailored to your personal investment goals. Moreover, it meets the bank’s ESG sustainability criteria.

Vermeersch points to the growing trend of ETFs in the market and emphasises that ABN AMRO wants to evolve with this development:  ‘We’ve been seeing this trend in the United States for some time, but ETFs are also gaining popularity in Europe. This mandate isn’t just a response to current market trends, though. It’s also a strategic choice to offer a sound and sustainable investment solution to a wide range of investors.’

What are ETFs and index funds?

Exchange-traded funds (ETFs) and index funds are at the heart of this mandate. These listed products are valued multiple times a day, giving investors the flexibility to respond to market developments in real time. The difference between an index fund and an ETF is that an index fund only trades once a day, whereas ETFs can be traded at any time during trading hours.

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