In this week’s latest round up we cover the debut of the Blue Bond Index; the launch of Nomura’s wealth management operations in Dubai; and the new Canadian commodity benchmark rules, among others.
US fintech platform iCapital has launched iCapital Architect, a portfolio construction tool to empower financial advisors to build personalised client portfolios incorporating alternatives and structured investments.
These investments have been the blind spot in many portfolio construction offerings - Lawrence Calcano, iCapital
The tool enables advisors to evaluate alternatives and structured investments alongside traditional assets and design portfolios that align with their clients’ return objectives and risk profiles. Among the features are resources for evaluating historical performance and running institutional-quality risk factor analysis, according to a statement from iCapital.
‘Advisors have long expressed a need for more comprehensive tools to effectively evaluate the inclusion of alternatives and structured investments in client portfolios,’ said Lawrence Calcano (pictured), chairman and CEO of iCapital. ‘These investments have been the blind spot in many portfolio construction offerings.’
Solactive launches world’s first blue bond index
Solactive has introduced the Blue Bond Index based on data provided by London-based Climate Bonds Initiative.
Blue bonds are debt securities issued by governments, development banks or other financial institutions with the aim of funding initiatives promoting marine conservation and sustainable use of marine resources, according to the German index provider.
The new index comprising bonds from the Climate Bonds Initiative Green Bond or Social & Sustainable Bond databases that’re self-labelled as blue bonds and allows investors to ‘partake in financing the protection of water and ocean life,’ according to the company’s announcement on 26 July. Traditional structured securities such as inflation-linked bonds, convertible bonds, and US municipal bonds are not eligible to be included in the index.
The latest offering comes a decade after Solactive introduced the world’s first green bond index, according to the German company. Earlier this year, Solactive introduced the Solactive Social and Sustainable Bond Index that is designed to offer a strategy for the social aspect of sustainable investing among ESG components.
‘While the blue bonds’ segment is still in its early stages, we aim to provide greater visibility and transparency into this vital market's development and effectively respond to the needs and expectations of society,’ said Timo Pfeiffer (above right), chief markets office at Solactive.
On 18 July, the German index provider also announced teaming up with Silex, a French investment group, to launch the Solactive Euro 40 Biodiversity on Land Index aiming to ‘raise awareness and drive investments towards companies actively engaged in protecting and restoring biodiversity on land,’ stated the firm.
Nomura launches IWM in Dubai
Nomura has obtained a category 4 license from the Dubai Financial Services Authority to expand its international wealth management (IWM) presence in the Middle East Africa South Asia (MEASAR) region, with a new premise in Dubai.
The expansion responded to the growing demand for wealth management services and financial solutions from its clients in the MEASA market, according to the firm’s statement on 20 July.
The move comes after the Japanese bank relocated Rany Moubarak (right) from Singapore to Dubai to take the newly-created head of global markets for the Middle East and Africa role earlier this month. Most recently Moubarak was co-head of structuring, Asia ex-Japan along with Rana Dasgupta.
In his new role, Moubarak oversees the client strategy for the region as well as building local structuring, execution and product capabilities.
AfrAsia Bank’s granted licence in South Africa
AfrAsia Bank, a Mauritius-based bank that offers offshore investing and other financial services to high-net-worth individuals, has been granted a Financial Services Provider Category 1 intermediary and advisory licence in South Africa, according to media reports in late June.
The licence will help the bank to expand its present and customer base in the country and to allow customers access to its financial products such as global custody investments that include shares, exchange-traded funds (ETFs), bonds, mutual funds, and indices.
The bank has been rendering since 2009 when first established its Johannesburg representative office. The bank also offers corporate and financial institution loans, trade finance and treasury, foreign exchange, money market, current and savings accounts, and structured products, to its South African clients.
Canadian regulator releases framework on commodity benchmarks
The securities regulatory authorities of nine Canadian provinces and territories including British Columbia and Ontario have published an advanced notice of implementation of final amendments to its commodity benchmarks rules.
The Multilateral Instrument 25-102 Designated Benchmarks and Benchmark Administrators (MI 25-102), provides a comprehensive framework for the designation and regulation of financial benchmarks and their administrators, and the regulation of benchmark contributors and of certain users of designated benchmarks, according to the Canadian Securities Administrators (CSA).
The amendments will implement a comprehensive regime for the designation and regulation of commodity benchmarks, including specific requirements (or exemptions from requirements) for benchmarks dually designated as designated critical benchmarks and designated commodity benchmarks, and for benchmarks dually designated as designated regulated-data benchmarks and designated commodity benchmarks, and the designation and regulation of persons or companies that administer such benchmarks.
The proposed amendments incorporate provisions intended to ‘enhance the accuracy, integrity and reliability of the framework,’ stated CSA. They will come into force on 27 September once all relevant approvals are cleared.