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VelocityShares Launches Libor Rate ETNs: Portfolio Products

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VelocityShares announced the launch of two new composite forward Libor rate linked exchange-traded notes: VelocityShares Long Libor ETNs (ULBR) and VelocityShares Short Libor ETNs (DLBR).

ULBR is linked to the Janus Velocity Long Libor Index, which aims to approximate the daily performance of a hypothetical long investment in the composite forward Libor rate as if the rate itself were an asset that could be invested in, and DLBR is linked to the Janus Velocity Short Libor Index, which aims to approximate the daily performance of a hypothetical short position in the composite forward Libor rate, as if the rate itself were an asset that could be shorted.

The ETNs are issued by Citigroup Global Markets Holdings, and all payments due on the ETNs are guaranteed by Citigroup Inc.

“In today’s unique interest rate environment, many investors are looking for tools that can be used to manage interest rate risks, and we are very pleased to provide the first ETNs allowing them to do so with daily exposure to the composite forward Libor rate,” said Nick Cherney, senior vice president, head of exchange-traded products for Janus Henderson. (VelocityShares is a Janus Henderson Group brand.)

The composite forward Libor rate on each day is equal to the weighted average of the forward 3-month U.S. dollar Libor rates implied in the daily settlement prices of the next 8 quarterly Eurodollar futures contracts, where these contracts have a weighted average tenor of approximately one year.

Principal Financial Launches New Retirement Design Solution

Principal Financial Group launched a new retirement modeling planner that provides a real-time assessment of retirement plan design scenarios.

“The advanced modeling planner provides a single platform to model best practice plan design features,” said Jerry Patterson, senior vice president, retirement and income solutions at Principal, said in a statement. “Plan sponsors and their advisors can conduct automatic enrollment, auto-escalation and stretch-match formulas – in real time with real client data – to identify the most beneficial retirement solutions for their business and employees.”

The advanced modeling planner is designed to show how automatic plan design features, such as enrollment and escalation, are the most effective way to show the impact on participant retirement readiness. It also allows advisors to see what action can be taken to improve overall retirement plan health and to view projected cost estimates of matching contributions (as a percentage of payroll reported).

Plans with eligible employees in a single location will be able to use the modeling planner, provided all participants are subject to the same automated plan provisions. Plans with eligible employees in multiple locations will be available by year end. This includes 401(k), 403(b) and 457 plan types.

The advanced modeling planner is being rolled out in phases. Principal Financial plans to give more than 2,000 plan sponsors and their respective advisors access to the advanced modeling planner over the next few weeks. Subsequent rollout plans are underway.

New ETF Provides 300% Exposure to J.P. Morgan EMBI Global Core Index

Direxion launched the Direxion Daily Emerging Markets Bond Bull 3X Shares (EMBU). The fund seeks to achieve 300% of the daily performance of the J.P. Morgan EMBI Global Core Index, which provides exposure to U.S. dollar-denominated government bonds issued by 55 emerging market countries.

“Emerging market bonds can offer the opportunity to gain higher yield and return, which has been the case recently,” Sylvia Jablonski, managing director at Direxion, said in a statement. “Traders often look to emerging market bonds as a means to support or express bullish views on the prospect for growth and development of these nations.”

The gross expense ratio is 1.08%.

Hartford Funds Releases ‘Summer School’ Video Series

Hartford Funds just wrapped the third season of Summer School, its weekly video series offering short lessons on current investment conversations.

The videos feature a variety of topics relevant to both financial advisors and investors.

The third season features the following episodes: Retiring Under the Current Administration, To Tweet or Not to Tweet, Back to Work, “Alternative Facts” and InvestingWhen Financial Therapy is the Answer for Married ClientsSingle RetirementFinancial Wellness, and Unmarried Millennials and Money.

Perilune Group Announces Restructuring & Expanded Global Investments Through Perilune Capital

Perilune Group announced the restructuring of the company into two separate entities, Perilune Capital LLC and Perilune Private Family Services (PFS).

Perilune Capital will focus exclusively on investments, including real estate, hedge fund seeding, commercial and business aviation and private equity on behalf of its institutional and private investors. Separately, PFS, the successor to the Perilune Group family office, will provide estate, tax planning and concierge services for select ultra high net worth families.

The establishment of Perilune PFS as a stand alone entity will provide family office services to ultra-high net worth investors and allow Perilune Capital to concentrate exclusively on investments, according to Carey Robinson Wolchok, chairman and founder of the Perilune Group.

— Check out DFA Announces Second Leadership Shakeup This Year on ThinkAdvisor.

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