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July 25, 2011 at 06:04 AM
This week in new portfolio products, UBS announced two Internet ETNs, and Ariel went international and global with new portfolios. Also, one of IndexIQ’s funds got a four-star Morningstar rating for its three-year anniversary, and Forward Management added no-load investor shares to three of its funds.
Here are the four latest developments of interest to advisors:
1) UBS Launches 2 IPO ETNs Linked to 20 Internet Stocks
UBS Investment Bank announced that Thursday was the first day of trading on the NYSE Arca for two ETRACS ETNs linked to the performance of the UBS Internet IPO Index (NETIPO). ETRACS ETNs are senior, unsecured, unsubordinated debt securities designed to track the total return of a specific market index. The ETRACs Internet IPO ETN (EIPO) provides exposure to the index performance, while the Monthly 2xLeveraged ETRACS Internet IPO ETN (EIPL) provides a monthly compounded two times leveraged exposure to the index performance.
The index is intended to measure, on a total-return basis, the performance of a subset of Internet-related companies listed on the NYSE or NASDAQ that satisfy specified market capitalization and other eligibility requirements, and provides exposure specifically to those Internet-related companies that have been publicly traded for less than three years. Standard & Poor’s Financial Services LLC serves as the calculation agent for the Index.
Both Internet IPO ETNS are linked to a benchmark index currently consisting of 20 holdings representing the latest generation of Internet-related stocks such as LinkedIn, HomeAway, Pandora Media and OpenTable. Index construction allows for the addition of new Internet-related companies within weeks after their IPOs, and a monthly index rebalancing feature and 3-year age limit ensure that the companies in the index remain up to date and relevant.
2) Ariel Investments Launches International and Global Portfolios
Ariel Investments, LLC announced Wednesday the launch of Ariel’s new international and global strategies. In conjunction with this announcement, Ariel also revealed that Rupal J. Bhansali has been appointed as senior vice president and CIO of international equities, effective this fall, to manage the new portfolios for separately managed account clients and mutual fund shareholders. She will be reporting to Ariel founder and CEO John W. Rogers, Jr.; she and the international team will be based in New York.
Prior to joining Ariel Investments, Bhansali spent 10 years with MacKay Shields where she was senior managing director, portfolio manager and head of international equities. During her tenure, she managed both institutional and retail portfolios, including the 5-star Morningstar-rated Mainstay International Equity Fund (MSIIX). Bhansali has held various roles at investment firms including Soros Fund Management and Oppenheimer Capital.
