New products and changes introduced over the last week include two fixed-income ETFs from SSGA and a domestic long/short equity fund from 361 Capital. In addition, J.P. Morgan Asset Management took a minority stake in Global X and AssetMark announced it is being bought by Huatai Securities, a Chinese firm.
Here are the latest developments of interest to advisors:
1) SSGA Launches Fixed-Income ETFs
State Street Global Advisors added two fixed-income ETFs: the SPDR DoubleLine Short Duration Total Return Tactical ETF (STOT) and the SPDR DoubleLine Emerging Markets Fixed Income ETF (EMTL). The latest offerings expand State Street’s partnership with DoubleLine, a leading fixed income investment management firm. Last year’s launch of the SPDR DoubleLine Total Return Tactical ETF (TOTL) was the fastest-growing ETF introduced in 2015, according to Bloomberg.
STOT is an actively managed core fixed-income ETF that strives to deliver risk-adjusted returns higher than its benchmark, the Barclays U.S. Aggregate 1-3 Year Index. It combines traditional, interest-rate-sensitive sectors like Treasuries and agency mortgage-backed securities (MBS) with nontraditional, more credit-sensitive sectors such as high yield, non-agency-backed MBS and dollar-denominated emerging-market corporate debt.
EMTL is an actively managed fixed-income ETF that seeks to provide high total return from current income and capital appreciation. It offers exposure to fixed-income instruments from emerging market sovereign and corporate issuers, and potential for alpha. Its benchmark is the JP Morgan Corporate Emerging Market Bond Index Broad Diversified.
2) 361 Capital Adds Long/Short Equity Fund
The fund, subadvised by Los Angeles-based Analytic Investors, focuses on domestic investments and seeks to achieve long-term capital appreciation by participating in rising markets and preserving capital during downturns. The fund is long low volatility stocks and short high volatility stocks.
3) J.P. Morgan Asset Management Takes Minority Stake in Global X
J.P. Morgan Asset Management announced that it has made a passive minority investment in ETF provider Global X Management Company, LLC.
The firm said that its investment will have no impact on how J.P. Morgan ETF Solutions and Global X operate their respective businesses. Specifically, there will be no co-marketing, investment management, distribution agreements or shared governance between the two organizations. In addition, Global X will not become an affiliate of J.P. Morgan.
4) AssetMark to be Bought by Huatai Securities
AssetMark announced that its owners private equity firms Aquiline Capital Partners and Genstar Capital are selling the firm to Huatai Securities, a publicly traded Chinese securities firm. After the transaction closes, which is expected before the end of 2016, AssetMark will remain an independently operated company with the same leadership team, brand, sales and service structure and strategy. Its portfolio strategist lineup and custodian options will also remain the same.