UBS Expands SMAs to Third-Party Asset Managers: Portfolio Products

Toews Introduces its First ETFs

Risk-managed investment specialist Toews Corp. jumped into the ETF sector with its first two offerings: the Agility Shares Managed Risk ETF (MRSK, with a net expense ratio of 0.96%) and Agility Shares Dynamic Tactical Income ETF (THY, 1.16%), both trading on the Cboe BZX Exchange.

Toews is serving as the adviser for Agility Shares ETFs, starting with these first two offerings, the firm said.

ETFs are a natural progression for the investment management firm’s business model, according to Philip Toews, its CEO. “Over nearly a quarter century of managing money for investors, our focus on downside risk mitigation appears to have been prescient,” he said in a statement, adding: “We think that investors, who have been experiencing ongoing market turmoil, may appreciate the availability of risk managed strategies in ETF form.”

Agility Shares ETFs “seek market exposure while attempting to limit risk, utilizing stringent rules-based strategies,” Toews Corp. said. MRSK “seeks to provide index-like returns, with put options to attempt to limit losses in a market downturn through a rules-based methodology,” the firm said. THY, meanwhile, “seeks to provide investors with exposure to the high-yield bond market while attempting to manage risk,” it said.

Janus Henderson Launches Global Sustainable Equity Fund

Janus Henderson Investors introduced the Janus Henderson Global Sustainable Equity Fund, an open-end mutual fund that it said is an extension of its existing Global Sustainable Equity strategy for U.S. investors.

The fund is being offered in seven share classes: A (JEASX), C (JECTX), I (JEUIX), N (JETNX), S (JESSX), T (JETTX) and D (JEDTX). The estimated net expense ratio for JEDTX is 1.00%. Estimated net expense ratios for the other share classes were not provided.

The mutual fund is available to direct investors now and is expected to become available subsequently on intermediary platforms, the firm said. The Global Sustainable Equity strategy is also offered in the U.S. as a managed account option on certain intermediary platforms, it noted.

Hamish Chamberlayne, CFA and Aaron Scully, CFA are co-managing the new fund. Chamberlayne has been managing the firm’s Global Sustainable Equity strategy since 2012. The strategy was started in 1991.

BlackRock Cuts ETF Fees

BlackRock said it will reduce expenses one basis point on three of its iShares Core U.S. equity ETFs that trade on the NYSE to help celebrate the 20^th anniversary of the funds. The net expense ratio of the iShares Core S&P 500 ETF (IVV) is being reduced to 0.03%, while the net expense ratio of the iShares Core S&P Mid-Cap ETF (IJH) is dropping to 0.05% and the iShares Core S&P Small-Cap ETF (IJR) net expense ratio is dropping to 0.06%, the firm said. The moves were “consistent” with BlackRock’s “long-term pricing strategy,” which is to provide value, it said.

Separately, BlackRock Advisors announced that the previously announced merger of BlackRock Muni New York Intermediate Duration Fund (MNE) into BlackRock New York Municipal Opportunities Fund (NYMO), with NYMO being the surviving fund, became effective June 22.

Invesco Liquidates ETF

Invesco said it will close and liquidate the Invesco RAFI Strategic Developed ex-US Small Company ETF, which trades on the Nasdaq (ISDS, with a net exchange ratio of 0.35%). The Invesco ETF board recently approved the liquidation. The company did not specify why it decided to make the move and did not immediately respond to a request for comment.

The last day of trading for the affected Invesco ETF will be Aug. 17, while the last day creation orders will be accepted will be Aug. 10, the company said. Shareholders may sell their holdings of the affected ETF on Nasdaq until market close Aug. 17, the affected ETF will no longer trade on Nasdaq after market close that day, and it will be subsequently delisted, Invesco noted. The final distribution to shareholders of the affected ETF is expected to occur on or about Aug. 24, it added.

MSCI Introduces Real Estate Risk Tool

MSCI launched a new tool that it said will help real estate investors assess and manage their exposure to climate change.

The new MSCI Real Estate Climate Value-at-Risk solution follows the launch of MSCI Climate Value-At-Risk (Climate VaR) in February and “builds on MSCI’s commitment to enable investors to effectively manage and plan for risk,” the firm said. The new tool offers a “forward-looking and return-based valuation assessment to measure climate-related risks” for real estate assets in investors’ portfolios, it noted.

“By calculating the financial risks from both changing legislation due to climate action (transition risk) and the extreme weather impacts caused by climate change (physical risk), per real estate asset and per scenario, MSCI Real Estate Climate Value-at-Risk provides a framework” for investors to “improve portfolio performance, risk management, regulatory reporting and progress towards broader sustainability goals,” the company said.  The framework is closely aligned to the G20’s Financial Stability Board’s Taskforce on Climate-Related Disclosures (TCFD), MSCI pointed out.

— Check out last week’s portfolio product roundup here: Principal Adds Tax-Advantaged ETF: Portfolio Products