UBS Financial Services is expanding its offering of Separately Managed Accounts with no additional investment manager fee to third-party asset managers.
Starting July 7, UBS clients will have access to nine additional SMA strategies, including Natixis Investment Managers/AIA, Breckinridge Capital Advisors and Goldman Sachs Asset Management, across equity and fixed income asset classes.
In August, another nine strategies are expected to join, from Franklin Templeton, Invesco, Brandes Investment Partners and Pimco, UBS said.
All SMA strategies will be made available via WM USA’s ACCESS, Strategic Wealth Portfolio and/or the recently launched Advisor allocation Program platforms, UBS said.
In January, UBS launched a simplified, all-inclusive pricing structure for all strategies available from UBS Asset Management and started providing clients access to select SMAs with no additional manager fee. The fee paid to investment managers are borne by UBS instead but certain strategies, such as sustainable investing or personalized tax management, can be selected for a fee, it said.
Separately, UBS Investment Bank said the ETRACS Midstream Energy Index ETN (AMNA) started trading on the NYSE Arca. The new exchange-traded note is linked to the Alerian Midstream Energy Index and has a 0.75% annual tracking fee rate.
State Street Partners With Orion
Orion Advisor Solutions teamed with State Street Global Advisors to provide new low-cost growth opportunities on the Orion platform.
State Street’s Strategic Asset Allocation ETF Portfolios are now available on the Orion Communities models marketplace and through the Orion Portfolio Solutions Turnkey Asset Management Program. They include six model portfolios, spanning from conservative to maximum growth, and represent a distinct mix of SPDR ETFs.
These portfolios offer “global diversification based on their target balance of risk and return, helping advisors deliver a consistent investment approach with lower turnover and greater cost efficiency,” according to Orion.
Users of Orion Communities and Orion Portfolio Solutions can also access State Street’s Tax-Sensitive Strategic Asset Allocation ETF Portfolios, spanning from conservative to growth, which can help advisors capture the federal, state and local tax advantages and lower default rates of U.S. municipal bonds, Orion said.
Also in Communities, the State Street Income Allocation ETF Portfolio which incorporates multiple asset classes, including dividend-paying equities, investment-grade and high-yield bonds, hybrid securities and global REITs. Advisors in search of uncorrelated alpha can access the State Street Active Asset Allocation ETF Portfolios which “blend quantitative rigor and qualitative insight to find opportunities in temporary security mispricings,” Orion said.
Separately, Orion announced the creation of two market-relevant, thematic stock and direct indexing strategies, designed and managed through Orion’s SMA portfolio optimization tool, ASTRO. The new strategies are U.S. Biotechnology stock and direct indexing portfolios and U.S. Metals and Mining stock and direct indexing portfolios, both available through Communities and the Orion Portfolio Solutions TAMP.
Direxion Launches Work From Home ETF
The previously announced Direxion Work From Home ETF (WFH) launched Thursday on the NYSE Arca with a net expense ratio of 0.45% as the firm looks to capitalize on the huge number of people now working remotely.
In disclosing its plan for WFH in an April 7 SEC filing, Direxion said it would seek investment results, before fees and expenses, that track the Solactive Remote Work Index.
Pacer Widens ETF Lineup
Pacer ETFs introduced four new funds as the company celebrated its fifth anniversary: the Pacer BioThreat Strategy ETF (VIRS; with a 0.70% net expense ratio); Pacer Lunt Large Cap Alternator ETF (ALTL, 0.60%); Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC, 0.60%); and Pacer Lunt MidCap Multi-Factor Alternator ETF (PAMC, 0.60%).
The Pacer BioThreat Strategy ETF is trading on the Cboe BZX Exchange and “seeks to track the LifeSci BioThreat Strategy Index to invest in U.S. listed companies whose products or services help to protect against, endure or recover from biological threats to human health,” Pacer said.
The other three new funds trade on the NYSE Arca and use Lunt Capital’s proprietary relative strength methodology, Pacer said. ALTL “aims to rotate between high-beta and low-volatility stocks listed in the S&P 500 Index, according to Pacer. PALC and PAMC are passively managed funds that “rotate among value, quality, volatility and momentum stocks within” the S&P 500 Index and S&P MidCap 400 Index, respectively, Pacer said.
“Given the increased market volatility seen in 2020, it is now more important than ever to incorporate investment solutions that can rely on strategy and timeliness to navigate market uncertainty,” according to Sean O’Hara, president of Pacer ETF Distributors.