Robeco, the €179 billion (EUR1 = USD1.0505) Dutch fund house owned by Japan's Orix (NYSE:IX) Corporation, has embarked on a strategic move into the Exchange-Traded Fund (ETF) market. This development, revealed on Thursday, is aimed at capitalizing on the increasing popularity and versatility of ETFs.
The firm has enlisted the expertise of Nick King, who previously held positions at Fidelity International and BlackRock (NYSE:BLK), to lead this initiative. King will be responsible for orchestrating Robeco's entry into the ETF space, which is scheduled for 2024.
The forthcoming ETFs will feature Robeco's intellectual property, highlighting its core competencies in various areas. These areas include sustainability, quant investing, thematics, credits, and emerging markets. The firm is also considering including its own indices in this offering.
Orix Corporation, Robeco's parent company, has a market capitalization of $21.98 billion, according to InvestingPro data. This financial powerhouse is a prominent player in the Financial Services industry and has maintained dividend payments for 32 consecutive years, signaling its financial stability. Orix has also seen a large price uptick over the last six months, which is a positive indicator for investors.
Orix's latest earnings reveal strong performance, with a P/E ratio of 12.07 and revenue of $18.61 billion. These strong earnings should allow management to continue dividend payments, an InvestingPro Tip that can be found here. The company has also been profitable over the last twelve months, further demonstrating its financial health.
InvestingPro data also shows that Orix's liquid assets exceed short-term obligations, which is a strong indicator of the company's ability to meet its liabilities.
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