* Five U.S. ETFs to be closed in October
* Closings follow numerous other small ETF shut-downs
* Largest U.S. ETF firms still introducing new products
BOSTON, Sept 24 (Reuters) - A unit of South African insurer Old Mutual OML.L will close its line of U.S. exchange-traded funds in October, marking the latest casualty among small ETF managers this year.
Numerous small players in the $800 billion U.S. ETF market have closed funds or dropped out altogether in recent months after failing to make headway against the largest managers. Meanwhile, firms at the top, including BlackRock BLK.N, State Street STT.N and Vanguard Group, continue rolling out new products at a hectic pace.
The funds being closed next month are the GlobalShares FTSE All-World Fund GSW.P, the GlobalShares FTSE Emerging Markets Fund GSR.P, the GlobalShares FTSE All-Cap Asia Pacific ex Japan Fund GSZ.P, the GlobalShares FTSE All-World ex US Fund GSO.P and the GlobalShares FTSE Developed Countries ex US Fund GSD.P.
“We’ve decided that it’s unlikely our products will gain sufficient market share in the United States,” Tendai Musikavanhu, chief executive of the Old Mutual unit, said in a statement. “We will continue using our core business of segregated account index management as a springboard for growth into other distribution channels and markets.”
Old Mutual’s U.S. ETFs were managed by its Old Mutual Global Index Trackers unit. The insurance company’s entire asset management business oversaw $387 billion at the end of 2009.
Earlier this month, Javelin Investment Management in Princeton, New Jersey, said it would close its fund that invested consistent with Islamic principles, the JETS Dow Jones Islamic Market International Index Fund JVS.P. And Geary Advisors of Oklahoma City said it would shutter funds that invested in stocks of companies based in Oklahoma and Texas. (Reporting by Aaron Pressman; Editing by Tim Dobbyn)
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