New products and changes introduced over the last week include an ETF from Recon Capital; an index from Solactive and an ETF based on it from Global X; and two additional investment options in variable annuity portfolios from Allianz Life.
Also, Altegris launched a fund for accredited investors and Genpact added a wealth management solution.
Here are the latest developments of interest to advisors:
1) Recon Capital Adds ETF
Recon Capital has announced the launch of the Recon Capital FTSE 100 ETF (UK), which is benchmarked to the FTSE 100. It trades on the Nasdaq.
UK is designed to give U.S. investors direct access to the well-capitalized listed companies on the London Stock Exchange. Recon Capital partnered with FTSE and the London Stock Exchange to license its flagship index. The fund will have an initial expense ratio of 45 basis points.
2) Solactive Adds Index; Global X Launches ETF
Solactive announced the launch of the Solactive Guru Activist Index, which tracks the price movements of U.S.-listed equity holdings of a group of activist investors, and Global X added the Global X Guru Activist Index ETF (ACTX), which tracks the Solactive index.
The index bases its stock selection on 13F filings, publicly available documents that all hedge funds with more than $100 million in U.S. equity investments are required to provide to the SEC on a quarterly basis, and 13D filings, by which all investors acquiring 5% or more of a company’s shares are required to report to the SEC within 10 days after the date of the transaction.
By investing alongside activist investors, ACTX seeks to benefit from their campaigns to unlock shareholder value and generate excess returns over U.S. equity benchmarks. Ordinarily, investing with an activist requires the payment of an ongoing 2% management fee as well as 20% of all profits. ACTX has an expense ratio of 0.75%, potentially allowing for greater cost efficiency.
3) Allianz Life Adds Options to VA Portfolios
Allianz Life Insurance Co. of North America has announced the addition of two investment options available on all new business and in-force Allianz Vision variable annuity and Allianz Connections variable annuity products. The AZL MVP DFA Multi-Strategy Fund and the RCM Dynamic Multi-Asset Plus VIT Portfolio are now available on contracts that either have no additional optional benefits or have the optional Income Protector rider. The AZL MVP DFA Multi-Strategy Fund offers an asset allocation composed of U.S. large- and small-cap, international and emerging markets equity, and global fixed-income asset classes through the MVP risk management process. The goal of the MVP risk management process is to manage the risk of market exposure.
The RCM Dynamic Multi-Asset Plus VIT Portfolio (DMAP) from Allianz Global Investors seeks capital appreciation and risk mitigation relative to a global 60% equities/40% fixed-income benchmark. The strategy favors riskier asset classes when trends and fundamentals are positive and becomes more defensive in its positioning when they are not.
4) Altegris Launches KKR Fund for Accredited Investors
Alternative investment strategy provider Altegris has launched the Altegris KKR Commitments Fund.
The fund offers accredited investors an opportunity to gain diversified exposure to investments managed by KKR, the global investment firm, by committing to three different forms of private equity — primaries, secondaries and co-investments — at a minimum initial investment of $25,000.
5) Genpact Adds Wealth Management Solution
Genpact has announced the launch of a new version of its OpenWealth Solution for wealth management firms.
The solution helps firms deliver highly customized portfolios and manage trades with a trade order management system that provides the ability to block, group and route trades. In addition, the system can integrate with downstream trade order management and/or trading platforms.
— Read the April 27 Portfolio Products Roundup on ThinkAdvisor.