Latest: Natixis, Solactive expand partnership into direct indexing

Natixis IM Solutions will be using 31 of the German index provider’s indices, 11 of which belong to the Solactive Global Benchmark Series, and 16 that are part of the Solactive Factor Series.

Direct indexing has been progressively gaining popularity to a larger group of investors, particularly in the US - Timo Pfeiffer, Solactive

‘Direct indexing has been progressively gaining popularity to a larger group of investors, particularly in the US. With this tool, investors can allocate their assets to a tailored portfolio with a Solactive benchmark as a starting point, applying numerous kinds of filters according to their needs and world views,’ said Timo Pfeiffer (right), CMO, Solactive.

According to Pfeiffer, as equity trading fees fall, and with the introduction of fractional share trading, ‘direct indexing’s ability to allocate assets in a customized fashion to align with the client’s values and financial goals make it an increasingly important solution for many retail investors’.

The Solactive Global Benchmark Series (GBS) includes around two thousand equity indices, covering the global stock market, comprising benchmark indices for 24 developed markets countries and 24 emerging markets. These indices can either be used directly in a product, as a benchmark, or as a starting universe of a developed index.

The Solactive Global Factor Series (GFS) is designed to provide investable access to the most important risk factors. The GFS heavily relies on academic research and is based on a straightforward methodology that offers clean exposures to six individual factors: value, quality, momentum, low size, growth, and low volatility.

‘Our direct indexing business has been growing rapidly as there has been very strong demand in the market for these kinds of highly customised investment strategies,’ said Curt Overway (pictured), co-head of Natixis Investment Managers Solutions.

Halo gets green light from Abu Dhabi regulator

Halo Investing received its Financial Services Permission (FSP) from Abu Dhabi Global Market's (ADGM) Financial Services Regulatory Authority (FSRA), effective 19 January 2023.

The US firm’s ‘dedicated office and expanded regional presence will help drive the growth of Halo Investing’s international footprint in the protective investing landscape’, stated the firm in an announcement.

The FSP authorised Halo Investing MEA to conduct regulated activities in the ADGM, including arranging deals in investments and dealing in investments pursuant to the Financial Services and Markets Regulations 2015 (FSMR).

The Abu Dhabi team will pursue Halo’s objectives of fundamentally disrupting the structured products industry and creating more efficient markets, according to Jason Barsema (right), president at Halo Investing.

‘The introduction of Halo’s holistic products and services that serve this very need is a testament to the international companies Abu Dhabi’s economy is attracting and its focus on financial innovation,’ said Arvind Ramamurthy, Chief of Markets at ADGM.

US wholesale distributor partners with advisory platform in structured notes push

Barnabas Capital, a premier structured notes wholesale and distribution company, has launched a strategic partnership with financial advisor platform Carson Group, ‘to bring a wider range of financial solutions to clients in the structured notes space’.

Under the partnership Carson will make available a range of structured product solutions and ‘bring structured notes to a wider audience of investors’, according to Joe Powell, president of Barnabas Capital.

‘The strategic alliance with Barnabas Capital will allow us to offer our clients a wider range of financial solutions and provide them with the tailored investment solutions they need to meet their unique financial goals,’ said Jamie Hopkins (right), managing partner of Wealth Solutions at Carson.

According to Barnabas Capital, structured product deposits in the US market crossed US$100 billion for the second year in a row in 2022, ‘which demonstrates the demand from investors for protected investment solutions’.

Barnabas Capital’s affiliate company, Financial Independence Group (FIG), formed a strategic partnership with Carson in 2021 to power the company’s insurance solutions business.

BMO deploys new leveraged gold ETNs via RexShares

Rex Shares has launched two new MicroSectors Exchange Traded Notes (ETNs) issued by Bank of Montreal (BMO), linked to the performance of the SPDR Gold Shares ETF – the MicroSectors Gold 3x Leveraged ETNs and MicroSectors Gold -3x Inverse Leveraged ETNs are available for trading on NYSE Arca.

The demand for hedging and trading tools tailored to specific market sectors, including gold, tech, energy, travel, and financials, is constantly changing, according to Scott Acheychek (right), CEO of Rex Shares.

With the launch Rex Shares expands its gold related offerings beyond the pair of gold miner ETNs with a new pair of leveraged and inverse leveraged ETNs linked to an exchange traded fund that invests in physical gold. Rex Shares’ MicroSectors range of ETNs will include 3X leveraged and -3X leveraged inverse exposure to both physical gold, and gold miners, through the Rex Shares GDXU and GDXD ETNs.

‘We hope that sophisticated investors will use these trading products as a way to tactically trade gold,’ said Acheychek.

Hang Seng Indexes targets hydrogen economy

Seng Indexes Company has launched the Hang Seng Stock Connect Hydrogen Energy Index as it seeks to expand its ESG products suite to ‘accommodate the needs of investors interested in sustainable investment strategies’.

Being an efficient and clean fuel, hydrogen plays a pivotal role in the energy transition to reduce greenhouse gas emissions and it has gained more tractions in recent years as such clean energy can be a low carbon solution to limit global warming and achieve carbon neutrality in the long run, according to Anita Mo (right), chief executive officer at the Hang Seng Indexes Company.

‘HSIL has been committed to addressing rising investment interest in sustainability by formulating innovative ESG-themed indexes since 2010,’ she said. ‘In light of hydrogen energy which will make a significant contribution to clean energy transitions, we launch the Hang Seng Stock Connect Hydrogen Energy Index to help decarbonisation-minded investors to capture the investment opportunities arising from low-carbon transition.’

The Hang Seng Stock Connect Hydrogen Energy Index is a cross-market ESG-themed index which tracks the performance of companies that are involved in the production, transmission, distribution and storage of hydrogen. Constituents of the index are listed in Shanghai, Shenzhen or Hong Kong and are eligible for trading through Stock Connect Scheme.

The index is calculated and disseminated in real-time at two second intervals.