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Top Portfolio Products: Additions and Subtractions for Direxion ETFs

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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.

They are the RMB Fund (RMBHX), the  RMB Mendon Financial Services Fund (RMBKX), and the RMB Mendon Financial Long/Short Fund (RMBFX). The RMB Fund is now managed by Todd Griesbach and the Financial Funds will continue to be managed by Anton Schutz, as they have been since their inceptions.

4) Jefferson National Introduces New Integration Resource

Jefferson National launched a new technology integration resource designed to help RIAs and fee-based advisors create greater efficiencies for their practice and better serve their clients. The new resource provides a single centralized source for advisors to integrate the Monument Advisor tax-advantaged investing solution with their preferred technology tools.

The technology integration resource currently includes partners for custody and clearing, portfolio management and performance reporting platforms, trade management and rebalancing platforms, data and account aggregation platforms and document management and eSignature platforms.

5) MAXIS GBN Launches Global Program Management Solution

MAXIS Global Benefits Network launched its global program management solution to consolidate financial data from local MAXIS affiliates for multinational companies whose local benefit programs are neither pooled nor included in any other type of international risk program.

The MAXIS Global Preferred Data Solution (GPDS) allows multinational employers to gain insights into benefits utilization and costs under their affiliates’ local insurance policies, without having to pool their programs.

It also provides specific premium, claim and reserve data, aggregated by policy and by country for group life, accident, disability and health coverages, as well as current and historical performance over the course of the program, the number of insured employees and historical loss ratios.

6) Salesforce Launches Shield for Financial Services Cloud

Customer relationship management firm Salesforce launched Shield for Financial Services Cloud, which can be used to assist financial advisors, retirement plan providers and insurance agents in complying with existing and emerging industry regulations such as the Department of Labor’s fiduciary rule.

(Related on ThinkAdvisor: New Salesforce Tool Helps Financial Institutions Comply With Fiduciary Rule)

Shield, in combination with Financial Services Cloud, gives firms the ability to capture client interactions and provide their compliance departments with visibility into communications between clients, advisors, agents and teams.

 Read the July 25 Portfolio Products Roundup at ThinkAdvisor.


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