Keep costs down and build portfolios that do what clients expect, Aleksey Mironenko said in a podcast recorded in early November 2022. Mironenko, Global Head of Investment Solutions at Leo Wealth, argued ETFs are practical building blocks for low-cost, transparent portfolios and for managing regulated exposure to parts of the digital-assets market. His remarks reflect a shift in how advisers combine traditional funds and new asset classes within client portfolios.

Aleksey Mironenko's argument is simple. Keep costs down. Build portfolios that do what clients expect.

He made those points in a podcast episode recorded in early November 2022. The recording was hosted on a platform that carries a standard notice that views expressed are those of the speakers. Mironenko spoke about portfolio construction, ETFs and the role of digital assets inside a multi-asset framework.

Track record in ETFs and fixed income

Mironenko has worked across asset management and ETF distribution in the Asia-Pacific region. He is Global Head of Investment Solutions at Leo Wealth. Before joining Leo Wealth he held senior roles at BlackRock. While at BlackRock, he led iShares efforts in Asia and had responsibilities in APAC fixed income. He also served as Partner and Chief Distribution Officer at Premia Partners, a Hong Kong ETF provider. Those roles involved launching and managing ETF products.

His career gives him two practical perspectives. One is the institutional view on indexing and fixed income. The other is product design and distribution in the ETF market. That mix shapes how he thinks about portfolio costs and access to markets for private investors.

Where ETFs fit in portfolio construction

Mironenko described a "well constructed" portfolio as one that's cost efficient and aligned with client goals. He argued ETFs help achieve both aims. ETFs offer market exposure with transparent fees and intraday liquidity.

That makes them useful building blocks for diversified portfolios.

Cost matters in long-term investing. Fees compound. Over time they trim returns. Mironenko emphasised that using low-cost vehicles can improve net returns for savers. He framed ETF use as a way to deliver broad market exposure without layering expensive active fees on top.

He also highlighted the operational benefits of ETFs. They allow advisers to adjust allocations quickly. They offer clear pricing and tax reporting compared with some pooled vehicles. For discretionary managers and wealth platforms, that clarity makes portfolio rebalancing easier and cheaper.

Mastheads

ETFs and digital assets

Mironenko discussed digital assets as part of a broader portfolio set of tools. He noted there are categories within the digital assets space. Some categories fit differently into risk management and allocation decisions. In the podcast he flagged a preference for certain categories under the macro conditions discussed at the time.

Rather than treating digital assets as an isolated bet, he argued for integrating them with other holdings and for sizing positions to client risk profiles. ETFs, he said, can help advisers gain regulated, transparent exposure to parts of the market where that structure exists. In regions and markets where ETF wrappers for digital assets are available, they can bring standardised custody, reporting and trading features that many investors rely on.

Mironenko's remarks came months before the high-profile market events later in 2022 that affected parts of the crypto ecosystem. The recording date is a reminder that his comments reflected the macro and market conditions at that time.

Implications for wealth managers and advisers

There are three practical implications from Mironenko's take.

First, cost control is central. Use of low-fee ETFs reduces drag on long-term returns. That helps meet client objectives without taking extra market risk.

Second, transparency and liquidity matter operationally. ETFs give platforms and advisers straightforward tools for reallocating assets and reporting performance. That lowers frictions in model portfolio management.

Third, the structure of digital-asset exposure should match the investor's goals. Mironenko urged advisers to think about which parts of the digital market make sense for each client. Where ETFs or ETF-like products exist, they offer familiar mechanics for access and risk control.

Those points affect several groups. Wealth platforms can streamline model portfolios. Independent financial advisers can offer clearer cost comparisons. Clients get more predictable fees and easier reporting. Product providers face pressure to offer regulated, low-cost wrappers if they want to meet demand from wealth channels.

At Leo Wealth, Mironenko oversees investment solutions and client portfolio construction. His remit covers how the firm combines funds, ETFs and other instruments to meet client outcomes. His prior experience in ETF distribution and fixed income shapes that approach.

He has emphasised cost-efficiency as a guiding principle. That influences product choice and portfolio tilts. It also affects how the firm discusses allocation to newer asset classes with clients and advisers.

Mironenko's comments push three questions back to the market. How much of a client's portfolio should be given to low-cost passive structures? When do advisers prefer active management despite higher fees? And how should firms package digital-asset exposure so it meets regulatory and custody standards?

Those are operational questions. They require product design and clear disclosure. They also require advisers to match client risk appetite with product features rather than marketing claims.

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The episode was recorded in early November 2022 and is available on Spotify.

This article was created with AI assistance.