The global alternative investment space now sits at more than $9 trillion in global assets, and we’re just getting started. Roughly 40% of RIAs are using alternative investments. With the RIA space expanding and alternative investment demand rising among investors – a surge in data, news, and opinion will continue. This channel cuts through the noise to give you the most important actionable insight.
Bernstein’s recent analysis indicates that the crypto fund management industry currently stands at approximately $45-50 billion in assets. However, the firm foresees a substantial growth potential, with expectations that it could burgeon to a staggering $500-650 billion within the next five years. This projection is rooted in the belief that the cryptocurrency industry is evolving from its current status as a relatively small “cottage industry” to becoming a formally regulated asset management sector.
Get Daily Updates
Subscribe to DailyAlts Today to get Alternative Investment news, insight, and commentary delivered straight to your inbox every day.
More Stories on Alternative Investments
BlackRock (NYSE: BLK) has made a significant move in the world of exchange-traded funds (ETFs) with the listing of the iShares MSCI Asia ex-Japan Climate Action ETF on the Singapore Exchange (SGX). This marks a milestone as the largest equity ETF launch in Singapore’s history, boasting an impressive US$426 million ($579.45 million) in assets. The fund’s foundation is bolstered by Prudential and a group of investors that includes Temasek and Singlife.
Chimera Investment, an Abu Dhabi-based private organization, has established an independent alternative investment company called Lunate, boasting over $50 billion in assets under management. Lunate will operate from the Abu Dhabi Global Market and will focus on various investment opportunities globally, including private equity, venture capital, private credit, real assets, public equities, and public credit markets.
Rockefeller Asset Management and KraneShares have jointly introduced the KraneShares Rockefeller Ocean Engagement ETF (KSEA), an innovative investment opportunity aimed at addressing the intersection of finance and ocean health. This ETF, under the ticker KSEA, is designed to invest in public companies that play a significant role in the well-being of oceans and their resources, aligning with the concept of the blue economy. This sector emphasizes sustainable solutions that yield positive outcomes for the ocean environment.
Neuberger Berman has recently introduced the Neuberger Berman Climate Innovation fund, aiming to invest in cutting-edge climate technologies and solutions. This fund, managed by New York-based portfolio managers Evelyn Chow and Charlie Lim, is designed to maintain a portfolio of 30 to 60 global equity holdings.
Alternative Investments/AI: South Korean Electronics Giant LG Leverages AI For Fund Management Venture
LG Group (KRX: 003550), a South Korean conglomerate renowned for its electronic products, is leveraging its expertise in artificial intelligence to venture into investment management. Collaborating with South Korean fintech Qraft Technologies, LG is introducing the LG Qraft AI-Powered U.S. Large Cap Core ETF, with plans to officially list it in November after filing the application in mid-August.
AXS Investments has teamed up with Gapstow Capital Partners to introduce a novel ETF named the AXS Real Estate Income ETF (NYSEARCA: RINC). This ETF offers an innovative avenue for higher yields through exposure to liquid real estate investments.
Alternative Investments/ESG: JPM AM Expands Paris-Aligned ETF Range With Two ‘Research-Enhanced’ Products
JP Morgan Asset Management (JPMAM) has introduced two Paris-Aligned Benchmark (PAB) ETFs – the JPMorgan Global Research Enhanced Index Equity SRI Paris Aligned UCITS ETF (JSEG) and JPMorgan US Research Enhanced Index Equity SRI Paris Aligned UCITS ETF (JSEU).
YieldMax™ has introduced a new ETF on August 15, 2023, titled YieldMax™ COIN Option Income Strategy ETF (NYSEARCA: CONY). It employs a synthetic covered call approach to generate monthly income from Coinbase Global, Inc. (NASDAQ: COIN).
The US Commodity Fund (USCF) has introduced the USCF Sustainable Commodity Strategy Fund (ZSC), an actively managed exchange-traded fund (ETF). This fund aims to achieve overall returns by providing broad exposure to commodities in three sustainability-focused areas: agriculture, renewable energy, and electrification.
Academy Asset Management introduced the Academy Veteran Impact ETF (NYSE Arca: VETZ) on the New York Stock Exchange during the week. VETZ’s primary objective is to generate income by investing in loans for U.S. service members, military veterans, their survivors, and businesses owned by veterans. The main purpose of this fund is to facilitate the flow of capital to veterans, resulting in lowered borrowing costs for both veterans and their families.
BlackRock has expanded its sustainable investing offerings with the iShares EURO STOXX 50 ESG UCITS ETF (ES50), a eurozone equity ETF listed on the Deutsche Boerse with a TER of 0.10%. The ETF tracks the EURO STOXX 50 index, including 50 large European companies that meet STOXX’s ESG criteria.
DWS has introduced a series of exchange-traded funds (ETFs) that offer an environmental, social, and governance (ESG) version of its global equity factor ETFs range. These ETFs, listed on the Deutsche Boerse and the London Stock Exchange, have a total expense ratio of 0.25%. The funds track MSCI indices and focus on low carbon metrics and socially responsible investing, targeting large and mid-cap companies from developed countries.
Europe’s first bitcoin exchange-traded fund (ETF) is set to be publicly listed after a one-year delay. Jacobi Asset Management had originally planned to launch the ETF on Euronext Amsterdam in July 2022 but postponed it due to market conditions following the Terra Luna cryptocurrency crash and FTX’s collapse.
Alternative Investments: Simplify Launches ETF Driven By Select Quant Strategies Used By Institutions
Simplify Asset Management has introduced the Simplify Multi-QIS Alternative ETF (NYSEARCA: QIS), an innovative investment product that focuses on multiple quantitative strategies across various asset classes.
UBS Asset Management has introduced a new suite of income-focused ETFs designed for investors interested in sustainable dividends and ESG (Environmental, Social, and Governance) criteria. The suite, called ‘Dividend Aristocrats ESG Elite,’ consists of two funds that provide exposure to global developed and US equity markets.
Tabula Investment Management, a European ETF provider, has introduced the Paris-aligned Global High Yield Fallen Angels Climate UCITS ETF, which focuses on fallen angel bonds. These bonds have been downgraded from investment grade but offer a higher credit quality compared to typical high-yield bonds, according to Tabula CEO Michael John Lyttle. He noted that many fallen angels enter the high yield universe with a BB rating and tend not to slip below that level.
Defiance, a leading ETF provider, has launched the Defiance Pure EV ETF (EVXX), the first ETF in the electric vehicle (EV) sector to focus solely on EV manufacturers. This ETF aims to provide investors with direct and concentrated exposure to the fastest-growing EV companies, capitalizing on the increasing adoption of EVs globally.
According to a reliable source, BlackRock (NYSE: BLK), the largest asset manager in the world, is on the verge of submitting an application for a Bitcoin ETF (exchange-traded fund), CoinDesk reported. It is not yet clear, however, whether the proposed ETF is spot or futures-based.
Amundi, a leading European asset manager and ETF provider, has announced the launch of a new Euro Government Tilted Green Bond UCITS ETF as part of its expanded Fixed Income ETF range. This ETF offers investors a unique approach to shift their core Euro government bond investments towards a responsible exposure.
Alternative Investments/ESG: Giant Finnish Pension Fund Ilmarinen Invests Nearly $3B In Climate ETFs
Ilmarinen Mutual Pension Insurance, the Finnish pensions insurer, has significantly increased its collaboration with ETFs by investing €2.75 billion (US$2.97 billion) in climate-focused exchange-traded funds. The move reflects the company’s commitment to aligning its passive equities exposure with its climate goals. Ilmarinen, which manages a pension fund worth €57.5bn and provides pensions through private-sector employers, has become the anchor investor in two new climate-focused iShares ETFs launched by BlackRock in the US and Japan.
Broadridge Financial Solutions has introduced an AI-powered application called BondGPT on its LTX platform, aiming to revolutionize bond selection and portfolio construction processes. BondGPT utilizes OpenAI GPT-4 technology to provide a conversational interface that helps traders identify corporate bonds based on specific criteria.
New York-based Global X ETFs has introduced its latest thematic-based fund, the Global X Carbon Credits Strategy ETF (NTRL). This exchange-traded fund invests in carbon credit or allowance futures across various regions and aims to capitalize on the growing importance of decarbonization in addressing climate change. Carbon credits are tradable permits issued by governments that grant the holder the right to emit one unit of emissions per credit, typically equating to one ton of carbon dioxide. Under cap-and-trade programs, companies can exchange these credits to meet their emission limits.
Seattle-based investment advisor Euclidean Technologies Management has launched its first exchange-traded fund (ETF), the Euclidean Fundamental Value ETF (ECML US). The actively managed US equity fund utilizes artificial intelligence (AI) to identify value stocks. The ETF, listed on NYSE Arca, has an expense ratio of 0.95% and currently manages approximately $130 million in assets.
Invest-tech Qraft Technologies has launched a new ETF called the QRAFT AI-Pilot U.S. Large Cap Dynamic Beta and Income ETF (NYSE: AIDB). This ETF utilizes the company’s proprietary risk model, powered by artificial intelligence (AI), to assess market drawdown risk and provide optimized equity allocation for investors.