BlackRock hires Goldman veteran to lead debt ETF push in U.S.

BlackRock , the world's largest provider of ETFs, has tapped Goldman Sachs's Heather Brownlie as U.S. head of fixed-income ETFs, a new role at the money manager.

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Brownlie will oversee product creation, sales and capital markets in BlackRock's debt ETF business as the company looks to accelerate the growth of these funds, according to Melissa Garville, a spokeswoman for New York-based BlackRock. Brownlie, who started Monday, was previously the global head of fixed-income for private wealth management in Goldman Sachs's investment management division.

BlackRock forecasts a 39% increase in the more than $750 billion market for bond ETFs.
Blackrock Inc. signage is displayed on a monitor on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, March 31, 2017. U.S. stocks were little changed on the final day of their best quarter in more than a year, as banks resumed their decline amid falling Treasury yields, offsetting gains in utility and real estate shares. Photographer: Michael Nagle/Bloomberg

More than $60 billion has flowed into U.S. debt ETFs this year, boosting assets to more than $520 billion, data compiled by Bloomberg show. Retail and institutional investors are increasingly adopting these products as a cheaper, more liquid way to get exposure to the bond market.

The funds can also be used in place of swaps and futures, or as an aid in transitioning portfolios from one asset class to another.

BlackRock also appointed derivatives expert Jim Hill as an adviser to its ETF business, Garville said. Hill, who's worked at Morgan Stanley and Credit Suisse, also started on Monday. He'll support BlackRock's attempt to increase the use of fixed-income ETFs by institutions, mostly working with the ETF capital markets and distribution teams.

BlackRock has more than 80 debt-focused ETFs in the U.S. with a combined $263 billion in assets; the funds have absorbed about $30 billion since Dec. 31, Bloomberg data show.

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Recruiting ETFs Bond funds Fixed income Asset managers BlackRock Goldman Sachs Money Management Executive
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