Direxion reverse split two leveraged ETFs last week, Semper launched an alternative strategy, and Wilshire Consulting added a climate change program for clients.
In addition, Brown Brothers Harriman launched a trust company in Hong Kong, American International Group streamlined its indexed universal life portfolio, and Vertical Management Systems partnered with Exchange Data International to expand offerings to asset managers.
Here are the latest developments of interest to advisors:
1) Direxion Reverse Splits Two ETFs
Direxion has reverse split two ETFs. The 1-for-10 reverse split of the shares of the Direxion Daily Gold Miners Index Bear 3X Shares (DUST) and Direxion Daily Junior Gold Miners Index Bear 3X Shares (JDST) was effective at the open of the market on May 18.
Since fractional shares cannot trade, each fund redeemed for cash a shareholder’s fractional shares at the fund’s split-adjusted net asset value. That may have tax implications for those shareholders as a gain or loss; otherwise, the reverse split will not result in a taxable transaction. No transaction fee was imposed on shareholders for such redemptions.
2) Semper Adds Structured Credit Strategy
Semper Capital Management has launched an alternative asset strategy, and has begun making investments in the target assets. On June 1, it will officially launch the private open-end commingled fund.
The strategy is intended to take advantage of investment opportunities in structured credit resulting from post-crisis regulatory changes combined with disruptive technology.
3) Wilshire Adds Climate Change Consulting Program
Wilshire Consulting has launched the Wilshire ClimateLens, a four-part program intended to help clients understand and make informed decisions about the risks and opportunities associated with climate change.