Citigroup has licensed its Citi Grandmaster Index on an exclusive basis to retirement savings products Athene USA and fixed indexed annuities (FIAs) provider Annexus.
The index will be used as the underlying in the Athene BCA suite of fixed indexed annuities (FIAs), including BCA 2.0 and Athene Velocity, as part of new enhancements to the products’ index portfolio.
The Citi Grandmaster Index is a globally diversified, rules-based gauge that takes a forward-looking approach to asset allocation. It seeks to anticipate market fluctuations by forecasting over 1,000 future market return scenarios every month. A proprietary optimisation process then identifies the asset-class weights expected to deliver the highest risk-adjusted returns. Additionally, the index features a dynamic daily risk control overlay that looks at volatility measured both by VIX and historical volatility to help stabilise returns through changing market environments.
The expanded lineup also includes the Shiller Barclays CAPE Allocator 6 Index latest index from economist Prof. Robert Shiller and Barclays - the next-generation index replaces the Shiller Barclays CAPE US Sector Risk Controlled 10% USD Total Return Index – ‘a top performer and the most-selected index in the BCA FIA suite’.
‘BCA already includes the top-three performing indices in the FIA industry year-to-date,’ said Athene’s co-founder Don Dady (pictured), adding that the two new underlyings will provide ‘greater diversification opportunities with low correlation’.
Halo adds new provider to annuities platform
Halo Investing US multi-issuer structured products platform has onboarded AIG Life & Retirement on its digital annuities platform as it continues to expand the resources, tools, and offerings targeted at financial advisors.
AIG Life & Retirement will offer its Power Index Advisory and Assured Edge Advisory annuities on Halo, enabling financial advisors to include AIG's retirement solutions as part of their clients' portfolios.
Halo entered the annuities space earlier this year with a module aimed at streamlining the execution and management across the annuity lifecycle for advisors as well as different annuity options and strategies from several carriers. Halo also has an outsourced insurance desk that can serve as the licensed agent of record for advisors.
The expansion of the platform’s footprint is a natural step for Halo after the launch of the structured notes platform and expansion into buffered ETFs. Halo first entered the buffered ETF market after announcing a partnership with Allianz Life Insurance which debuted its first series of buffered outcome funds in April 2020.
EQM Indexes eyes ESG index products
US index development firm EQM Indexes (EQM Indexes) has partnered with YourStake, a platform that provides financial advisors and asset managers with the tools, data, and reporting metrics to create index sustainably-focused index products for the ETF market using YourStake’s ESG and socially responsible investing (SRI) intelligence.
EQM Indexes wants to leverage the firm’s NoScore ESG approach which provides data from more than 100 independent sources that meet regulatory standards, and dynamic research tools to screen funds and individual stocks for suitability, personalised to client values.
‘Traditional ESG scores can use one-size-fits-all rating systems that are inconsistent, opaque, and rely on voluntary company reporting which can lead to greenwashing,’ said EQM Indexes co-founder and CEO Jane Edmondson. ‘This approach provides a more transparent and marketable alternative to traditional ESG scores, which often fail to resonate with clients.’
Hang Seng rolls out 2x leveraged Tech plays
Hang Seng Indexes Company has launched the HSTECH 2x Short Index and the HSTECH TR 2x Leveraged Index.
The two new indices are the latest additions to the existing range of indices derived of the Hang Seng TECH Index (HSTECH), which ‘has attracted strong interest from investors since its launch last year,’ according to Hang Seng Indexes.
The new HSTECH 2x Short Index and the HSTECH TR 2x Leveraged Index are, respectively, short and leveraged versions of the HSTECH. The HSTECH 2x Short Index is inversely linked to the daily movements of the HSTECH and provides 2x reverse return; while the HSTECH TR 2x Leveraged Index reflects the 2x amplified return of the HSTECH total return index.
The new two indices related to the HSTECH are aimed at meeting ‘the growing demand among investors for replicating the payoff of short or leveraged investment strategies for the HSTECH, according to Daniel Wong, director & head of research and analytics at Hang Seng Indexes.
‘The indexes can also be used as the basis for the development of exchange-traded funds and derivatives products,’ he said.
Solactive launches first-ever photonics investable index
The European Photonics Industry Consortium (EPIC), a non-profit industry advocate for Photonics, has collaborated with Solactive and Anatase Ltd. in developing the Solactive EPIC Core Photonics Index - the world’s first investable index that tracks the photonics industry on a global scale.
The Solactive EPIC Core Photonics Index measures the performance of companies that derive most of their revenues from Photonics manufacturing activities. Photonics is the physical science of generating, detecting, and manipulating light. Photonics applications and integrations are ubiquitous.
They are included in everyday life products from smartphones, televisions, laser printers, LED lighting to more advanced applications, such as medical diagnostics and security systems. Companies operating in these sectors all require photonics technology as a key aspect of their functionality.
‘Industry consolidation will drive Photonics investment returns over the next 10-20 years, and while individual company returns are potentially very large, it is difficult for investors to differentiate between the winners and losers over time. This is why a thematic index approach makes more sense,’ said Markus Barth, 30-year veteran index architect and CEO of consulting firm Anatase Ltd. who designed the index methodology. ‘The environmental impact of Photonics manufacturing is also significantly lower. The index has over a 90% lower carbon footprint than the overall US and European markets.’
Currently, the Photonics market is valued at nearly $800 billion and is expected to reach US$1.2 trillion by 2026 (growing at eight percent per year), according to EPIC.