Latest: Luma, Morningstar collaborate on structured products data analytics

Luma Financial Technologies, an independent multi-issuer structured products and annuities platform, has signed an agreement with Morningstar to launch structured products data and analytics within the Morningstar Advisor Workstation.

Our collaboration with Morningstar enables financial professionals to combine the breadth of our data with their deep portfolio analysis - Tim Bonacci, Luma

Morningstar will use the data provided by Luma to analyse, manage, and allocate structured products in an overall client portfolio context. Subsequent enhancements of Advisor Workstation through 2022 will build on Morningstar’s objective to provide deeper classification of structured products so financial professionals can more easily see the impact to a client’s investment plan.

‘Our collaboration with Morningstar enables financial professionals to combine the breadth of our data with their deep portfolio analysis,’ said Tim Bonacci (pictured), CEO and president of Luma. ‘This empowers them to determine whether structured products can provide the right fit for clients and help them more easily reach their investment objectives.’

According to SRP data, more than 31,500 structured products worth US$100.9 billion were issued in the US in 2021 – the highest number, both by issuance and sales, since the launch of the SRP US database in 2005.

‘Adding Luma’s structured products data and modeling to financial professionals’ toolkits will illustrate important trade-offs and empower investors to make better informed financial decisions,’ said Kevin Reed, head of strategic partnerships at Morningstar.

In addition to accessing structured products data through Morningstar Advisor Workstation, subscribers will also be able to access Luma’s platform directly within this solution. In order to fully transact in the marketplace, they can elect to enrol as a Luma client. 

Mariana adopts Socius structured products platform

Mariana, Goldman Sachs and Socius Technologies have announced a new collaboration to support the UK structured products market.

The arrangement will see Mariana licensing the Socius Technologies’ structured product administration platform. The platform has previously been used for three years by Investec, which in 2021 announced that it would not launch any further retail structured product plans in the UK.

Independent financial advisors (IFAs) registered on the InvestecForAdvisers platform will be able to seamlessly rollover maturing Investec products to the MarianaForAdvisers platform. As part of the process to allow IFAs to rollover maturing product from one platform to the other, IFAs will be able to choose from an exclusive range of structured products issued by Goldman Sachs.

‘Working in collaboration with Goldman Sachs and Investec, this solution provides us with the perfect opportunity to accelerate the growth of our business and provide IFAs with an on-going digital experience that they have become familiar with through use of the Investec platform,’ said Nev Godley (right), partner at Mariana.

Laura Stojcevic, managing director at Goldman Sachs and head of UK and Ireland structured sales added: ‘With Investec having been very successful in selling structured products to the UK market for over 12-years, we were keen to be involved at outset and provide some continuity to advisers seeking to re-invest their maturing client assets in a new range of structured products that we will be creating for them.’

Lincoln enhances top-selling indexed variable annuity

Lincoln Financial Group is expanding investment options for Lincoln Level Advantage – its best-selling indexed variable annuity – with a new blended index that provides exposure to US companies demonstrating leadership in technology, economic growth and stability.

The First Trust American Leadership Index aims to track a blend of equally weighted allocations to four indices, providing exposure to quality US companies across all sectors poised to drive growth and innovation, with an emphasis on technology leaders and quality and growth-oriented dividend payers.

The new index is available with Lincoln Level Advantage through FT Indexing Solutions, LLC, a privately held company whose affiliates have been providing investment services for more than 30 years.

‘As we remain focused on offering solutions that help people achieve financially-secure futures, enhancing our broad portfolio with an option like FT Indexing Solutions’ blended index is the latest example of Lincoln’s innovative approach to helping provide protection levels and long-term growth for everyday Americans,’ said Brian Kroll (right), senior vice president and head of Annuity Solutions, Lincoln Financial.

Since its launch in May 2018, Lincoln Level Advantage indexed variable annuity has been Lincoln’s most successful product launch to-date with more than US$13 billion in lifetime sales. The indexed variable annuity provides investors the ability to tailor a combination of protection levels with indexed account options to help meet their risk tolerance, individual investment style and retirement income planning goals.

The product was recognised by SRP in 2019 and 2021 with the award for ‘Best Variable Annuity Index Carrier’.

iCapital expands strategic partnership with Bank of Singapore

Global fintech iCapital has acquired Bank of Singapore’s in-house private market feeder fund platform. With the deal, iCapital takes over the management and operation of the bank’s private market feeder funds while Bank of Singapore retains client servicing responsibilities.

Following the close of the transaction, iCapital services approximately US$114 billion in global private assets, of which more than US$27 billion are from international investors (non-US Domestic), across more than 940 funds.

The deal builds on a long-standing partnership between the two companies. Bank of Singapore previously tapped iCapital to build out a technology and feeder fund solution to offer the bank’s advisors a platform for selecting private market investments for inclusion in client portfolios including private equity, private credit, and real assets.

As part of the transaction, the bank’s wealth managers also gain access to AltsEdge, the educational platform sponsored by the iCapital Foundation and CAIA, designed to help wealth managers better understand alternative investments and how they can leverage them to improve client outcomes.

‘This deal is a key milestone in iCapital’s expansion strategy in Apac and attests to our ability to be a partner of choice for wealth managers as they make private markets a strategic priority and a more accessible component of a diversified portfolio,’ said Marco Bizzozero (above right), head of international at iCapital.

EBA recommends adjustments to proposed EU Green Bond Standard as regards securitisation transactions

The European Banking Authority (EBA) has published a report which analyses the recent developments and challenges of introducing sustainability in the EU securitisation market. The report examines how sustainability could be introduced in the specific context of securitisation to foster transparency and credibility in the EU sustainable securitisation market and to support its sound development.

In particular, the report explores whether and how the EU regulations on sustainable finance, including the EU Green Bond Standard (EU GBS), the EU Taxonomy, and the Sustainable Finance Disclosure Regulations could be applied to securitisation; the relevance of a dedicated regulatory framework for sustainable securitisation; and the nature and content of sustainability-related disclosures for securitisation products.  

The EBA’s analysis shows that it would be premature to establish a dedicated framework for green securitisation. Rather, the EBA is of the view that the upcoming EU GBS regulation should also apply to securitisation, provided that some adjustments are made to the standard. In this regard, the EBA recommends that the EU GBS requirements apply at originator level (instead of at the issuer/ securitisation special purpose entity level). This would allow a securitisation that is not backed by a portfolio of green assets to meet the EU GBS requirements, provided that the originator commits to using all the proceeds from the green bond to generate new green assets.

The EBA sees the proposed adjustments as an intermediate step to allow the sustainable securitisation market to develop and to play a role in financing the transition towards a greener EU economy. They are also meant to ensure that securitisation is treated in a consistent manner as other types of asset-backed securities.