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August 01, 2016 at 04:56 AM
New products and changes introduced over the last week include the addition of two ETFs plus forward and reverse splits for nine others by Direxion; a suite of dynamically managed strategies from 55 Capital; and the appointment of RMB Capital as the advisor to Burnham Funds.
Also, Jefferson National introduced a new integration resource for RIAs and other fee-based advisors; MAXIS Global Benefits Network launched a global program management solution; and Salesforce launched Shield for Financial Services Cloud.
Here are the latest developments of interest to advisors:
1) Direxion Adds ETFs and Splits Others
Direxion launched two ETFs and announced forward and reverse splits for nine others.
The Direxion Daily European Financials Bull 2X Shares (EUFL) seeks to achieve 200% of the daily performance of the MSCI Europe Financials Index and has a net expense ratio of 0.80%. The Direxion Daily Gold Miners Index Bear 1X Shares (MELT) seeks to achieve 100% of the inverse of the daily performance of the NYSE Arca Gold Miners Index and has a net expense ratio of 0.45%.
The firm will also execute reverse splits of several leveraged ETFs which have experienced large losses year-to-date. These include a 1-for-4 reverse split of the Direxion Daily Natural Gas Related Bear 3X Shares (GASX), which is down 82% year-to-date; and 1-for-5 reverse splits of these ETFS: Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 3X Shares (DRIP), down 69% YTD; the Direxion Daily Gold Miners Index Bear 3X Shares (DUST), off 97%; and the Direxion Daily Junior Gold Miners Index Bear 3X Shares (JDST), down 99%. The splits are effective at the market open on August 25.
Direxion has taken the opposite approach for leveraged ETFs which have rallied sharply this year. Direxion will execute 4-for-1 forward splits of the Direxion Daily Brazil Bull 3X Shares (BRZU), up almost 200% year-to-date; the Direxion Daily Real Estate Bull 3X Shares (DRN), up 55%; and the Direxion Daily 20+ Treasury Bull 3X Shares (TMF), up 63%. It will executive a 5-for-1 split for the Direxion Daily Gold Miners Index Bull 3X Shares (NUGT), up 561% year-to-date and a 10-for-1 split for the Direxion Daily Junior Gold Miners Index Bull 3X Shares (JNUG), up 839%. These splits will occur after the market close on August 24.
2) 55 Capital Adds Suite of Dynamically Managed Strategies
55 Capital launched a suite of dynamically managed strategies using ETFs that will initially be offered in separately managed accounts (SMAs) and limited partnership (LP) vehicles.
The strategies include Dynamic Macro, which provides a multiasset-class offering using equities, fixed income, absolute return, commodities and currencies exposures; Enhanced Macro, which has a fixed allocation to equity, bonds and alternatives; and Global Allocation, which dynamically allocates between three equity (U.S., developed and emerging) and three fixed income asset classes (U.S. credit and U.S./emerging sovereign).
Other strategies just introduced are Global Equity, which provides U.S., developed and emerging markets equity exposures; and Alternatives, which provides a substitute for bond allocations using absolute return, commodities and currencies exposures.
3) RMB Capital Becomes Advisor to Family of Funds
The board of trustees of Burnham Funds chose RMB Capital as the interim investment advisor for Burnham Funds effective July 1. Shareholders are scheduled to vote on the change on September 15. The funds are now known collectively as the RMB Funds, with investment objectives and shareholder fees unchanged.
