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Top Portfolio Products: Direxion Reverse Splits 2 ETFs

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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.

The program advises clients to approach climate change as a broad exercise in risk management, including both active engagement and thoughtful investment solutions. The four parts of the program are education, assessment, planning and implementation.

4) Brown Brothers Harriman Launches Hong Kong Trust Company

Brown Brothers Harriman has announced the launch of its trust company in Hong Kong, led by Gabriel Chung.

The business provides a full-service offering for global asset managers looking to establish Hong Kong-domiciled funds, including ETFs.

5) AIG Streamlines IUL Portfolio

AIG has streamlined its IUL portfolio, adding two IUL policies and educational tools for financial professionals and their clients.

The added policies, Max Accumulator+ and Value+ Protector, both issued by American General Life Insurance Co. (AGL), offer death benefit protection, the potential to grow cash value with guaranteed floors to protect against loss in down markets, and multiple customization options. The interactive online resource Life to the Max is intended to educate users about potential challenges to a successful retirement. No user ID or password is required.

6) VMS, EDI Partner on Offerings

Vertical Management Systems Inc. and Exchange Data International have partnered to expand offerings to asset managers.

The partnership enables VMS to expand into the distribution of domestic and global securities data; it allows the addition of mutual funds, corporate actions and dividends data to existing offerings on equities, fixed income and derivatives securities.

— Check out the May 16 Portfolio Products Roundup on ThinkAdvisor.


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