Liquid Alternative investments have emerged over the past decade as one of the fastest-growing areas within asset management. As pensions, endowments, foundations and other institutional investors have long benefited from Alternative Investments within their portfolios, Liquid Alternatives enable investors to have access to alternative investment strategies in fund structures that provide daily liquidity, full transparency, low investment minimums and other key attributes for investors. DailyAlts is your source for the most up-to-the-minute news, commentary and analysis on the global market for Liquid Alternatives.
European investors, both retail and institutional, are showing a growing interest in hedge funds and alternative investment options, as indicated by recent findings from Cerulli Associates. In the UK, Italy, and Switzerland, there’s a notable preference for semi-liquid funds for private market investments, with 50% of UK wealth managers favoring this approach.
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Merlyn.AI Corporation (MAI), the Palo Alto-based ETF provider that previously introduced the WIZ ETF, has now launched the Merlyn.AI Tactical Growth and Income ETF (Nasdaq: SNUG) on the Nasdaq exchange. The ETF is a conservative investment that seeks to improve returns in both bull and bear markets. The ETF tracks the MAI Tactical Growth and Income Index.
Invesco, the fund manager with $1.23 trillion in assets under management as of December 31, 2019, has launched in Europe a new, first-of-its-kind, sterling-denominated, corporate bond ETF with an ESG tilt. The Invesco GBP Corporate Bond ESG UCITS ETF (IGBE) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.10%.
A survey by ETF Trends and ETF Database titled “How Financial Advisors Buy ETFs” found that more than half (or about 63%) of advisors said that the percentage of ETFs in their clients’ portfolios were below 40%.
To mark the occasion of the listing of three liquid alternative ETFs, Rohit Mehta, Executive Vice-President, CI Financial, and President, CI First Asset ETFs, and Graham Mackenzie, Head, ETFs, and Structured Products, Toronto Stock Exchange, opened the market on February 20.
Franklin Templeton will become a $1.5 trillion behemoth after its acquisition, announced Tuesday, of rival Legg Mason for $6.5 billion including debt. It will pay $50 per share of Legg Mason in cash – a premium of $10 over the latter’s Monday closing price. In addition, it will assume $2 billion of the latter’s debt.
Two American Century funds may be the first to test waters as “actively managed” ETFs.
Having received the SEC’s approval for its final key filing, Cboe BZX Exchange, Inc. is close to launching its proposed actively managed ETFs, also known as “non-transparent” ETFs. The two ETFs, based on Precidian’s ActiveShares model, will disclose their holdings on a quarterly schedule, instead of on a daily basis as other ETFs.
CP ETFS is a fund house that specializes in managing downside risk with the ability to participate in market upside with a low-correlation diversifier strategy. This strategy reduces the impact of advisor and client emotion on portfolio performance. CP ETFs has launched CP High Yield Trend ETF (HYTR), which alternates exposure between the US high yield corporate market and three-seven year US Treasuries.
Lyxor launches three new ETFs for investors looking to invest in high yield bonds with a sustainability angle.
Lyxor’s new ETFs have a total expense ratio (TER) of 0.25%, the lowest among ETFs tracking High Yield indices with ESG filters.
Credit Suisse announced the addition of three new, “ultra-efficient” ETFs to its range of funds. These funds will supplement the existing Credit Suisse index Funds.
Credit Suisse Asset Management had an AUM of CHF 132 billion as of end-December 2019. It has a core business of index funds and has been replicating indices for a wide array of asset classes, regions and currencies since 1994. Currently, it has a range of more than 90 index funds on offer. It has extended this capability to ESG sustainability indices.
Two of the new funds have a focus on environmental, social and governance (ESG) aspects.
New Fixed Income ETFs From BMO are Now Trading in Toronto. The three new ETFs include a first-of-its-kind one that is based on mortgage-backed securities.
Two of these new fixed-income ETFs from BMO Global Asset Management invest in corporate bonds, while the third invests in mortgage-backed securities.
Simon Property Group will buy Taubman Centers in a $3.6 billion deal.
The Invesco KBW Premium Yield Equity REIT ETF (NYSEArca: KBWY) shot up 3.6% on Monday on news of the transaction. Taubman Centers (NYSE: TCO) constitutes 3.7% of the ETF’s portfolio. Simon Property Group (NYSE: SPG) will pay $ 52.50 in cash per share of Taubman to acquire a majority stake in TCO.
Van Eck will soon launch the VanEck Vectors Sustainable Muni ETF.
The fund manager will meet investors’ growing preference for sustainable investing by offering it inside of a fixed income vehicle. It filed with the SEC for its plans to launch the VanEck Vectors Sustainable Muni ETF
Investors seeking currency-neutral exposure to Japanese stocks can invest in the new Vanguard currency-hedged Japan ETFs.
Vanguard has addressed a long-pending demand from European investors for currency-hedged versions of its Vanguard FTSE Japan ETF (VJPN).
The US Dollar hedge version, The Vanguard FTSE Japan USD Hedged ETF (VJPU), is listed on the London Stock Exchange and carries a total expense ratio of 0.20%.
However, the Euro hedge version, the Vanguard FTSE Japan EUR Hedged ETF (VJPE), is listed on the Deutsche Boerse with a total exchange ratio of 0.20%.
Kraneshares, the asset management company that believes “the relationship between the US and China will be the most important economic partnership of our lifetimes,” and specializes in China-facing ETFs, launched the KraneShares MSCI China ESG Leaders UCITS ETF (KESG).
The First Trust Merger Arbitrage ETF Will Skim Merger Spreads. It’s a hedge fund type, actively managed ETF. But don’t balk at its fees.
Liquid Alternatives: UK Investors Can Now Get Their Hands On First Trust’s US Capital Strength Strategy
First Trust launches a highly successful US strategy for UK investors. The First Trust Capital Strength UCITS ETF (FTCS) will replicate one that swept up $1.5 billion in inflows in the US.
“Over the last twenty-five years in times of market instability, quality and less volatile US equities have historically outperformed the S&P 500 index in down months by 74% and 85% respectively,” said Gregg Guerin, senior product specialist at First Trust. “We are pleased to bring this rules-based strategy to market and believe FTCS offers advisers and wealth managers the potential for protecting in negative markets while participating in increasing markets.”
Chinese mutual funds are facing new regulatory scrutiny in the face of a sharp selloff Monday. During the first day since the Lunar New Year holiday, the Shanghai Index fell by 7%. Chinese officials are doing everything they can to prevent a sharper decline.
CI Investments Floats Three Liquid Alt ETFs in Modernization Drive. The ETFs will trade on the Toronto Stock Exchange.
The new ETFs from CI Investments are a take on the strategies followed in the fund manager’s liquid alternative mutual funds launched in November 2018. These funds have scooped up inflows above US$1.1 billion as of December 31, 2019.
Earlier this month, Goldman Sachs filed to set up a non-transparent ETF that would not disclose its investments daily. The fund would, therefore, be different from run-of-the-mill ETFs which are required to publish details of their holdings every day in the interests of transparency.
The First 5G ETF (NYSE: FIVG), from the Defiance stable, mopped up AUM of over $200 million in less than 12 months.
FIVG, a thematic ETF focused on investing around the theme of 5G connectivity, has met with an enthusiastic response from investors.
Liquid Alternatives: The iMaps Investment Strategy Based ETI Launches for Retail Investors On Vienna Bourse
The first Exchange Traded Instrument (ETI) from the Liechtenstein-based iMaps ETI plc launched on January 13 on the Vienna Stock Exchange.
Asset manager and BaFin licensed PP Asset Management, which runs the Haack investment strategy, launched the Haack Performance ETI on Monday. Hans-Jürgen Haack, Senior Manager at PP Asset Management, masterminded the strategy. It has delivered a return of 20% over the past year.
The global ETF market drew in inflows of nearly half a trillion euros (€495bn) in 2019.
But European ETFs were a standout, pulling in €104bn of net new assets, and setting a new record, according to data from Amundi Asset Management cited by INVESTMENT WEEK.
The Investment Company Institute cited the largest outflows of capital from mutual funds and ETFs since September. During the first full week of 2020, fund investors pulled $13.1 billion out of the vehicles.