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Titan AM’s Leiper on Opportunities in ETFs, Uranium, Curve Steepening, and S&P 493 ETFs

2024-02-21 08:16:45.743000

John Leiper, CIO at Titan Asset Management, discusses opportunities in ETFs addressing esoteric commodity, fixed income, and equity exposures [643093ec]. He notes a pullback in bond yields and expects a continuation of the disinflationary trend and decline in bond yields [643093ec]. Leiper mentions neutralizing risk in the equity bucket, including closing out a China tech sector position and favoring a structural underweight to low-cost benchmark emerging market allocations [643093ec]. He highlights the core allocation to low-cost US equity ETFs such as the SPDR S&P 500 UCITS ETF (SPY5) and expresses interest in equal-weighting US exposure [643093ec]. Leiper also mentions new ETF launches capturing companies well-placed to protect their market share [643093ec]. In fixed income, his team moved closer to benchmark-neutral duration and added allocations to UK and European sovereigns [643093ec]. Leiper took a position in the Lyxor US Curve Steepening 2-10 UCITS ETF (STPU) to bet on a decline in yields on the short end of the US Treasury yield curve [643093ec]. He mentions reducing ETF-based convictions to focus on uranium exposure, particularly junior uranium miners [643093ec]. Leiper notes a gap in the market for junior uranium miners ETFs in Europe [643093ec]. He concludes that larger uranium miners may be over-committed in terms of their contracts, while junior miners have more unhedged exposure to the rising uranium price [643093ec].

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