Latest: GenTwo founders enable full collateralisation of securitised assets

Security Agent Services (SAS), a company founded in early 2021 by Patrick Loepfe (pictured) and Philippe A. Naegeli, the two founders of GenTwo, will become the central element of a new solution for investors.

With immediate effect, any structured product securitised via GenTwo and GenTwo Digital can now be launched as a ‘collateralised security,’ fully protecting professional investors against a potential default of the issuer. Due to the 100% collateralisation in favour of the investors, who are jointly represented by SAS in the context of creating and monetising the collateral, the corresponding investments are no longer exposed to issuer risk.

‘By fully collateralising any conceivable asset, we are setting completely new standards in the investment market,’ said Loepfe.

According to Naegeli, investors demand the highest possible degree of security when it comes to their investments.

‘This new future-oriented solution responds to this need,’ he said.

Société Générale tops German rankings in July

Société Générale retained its position as the number one manufacturer of structured securities in Germany in July, according to the latest figures released by the German Derivatives Association (Deutscher Derivate Verband, or DDV).

The French bank achieved a turnover of €588.8m during the month, which translates in a 12.70% share of the German market. DZ Bank and Morgan Stanley came second and third, with a market share of 11.32% and 10.19%, respectively, while Vontobel (9.73%) and Citigroup (9.16%) completed the top five.

In July, trading in structured securities on the Stuttgart and Frankfurt stock exchanges was dynamic. The total order volume achieved was €4.6 billion, an increase of 14.3% on the previous month.

Rex Shares launches two Fang ETNs

US-based financial company Rex Shares has released two exchange-traded notes (ETNs), the MicroSectors Solactive Fang & Innovation 3x Leveraged ETN and MicroSectors Solactive Fang & Innovation -3x Inverse Leveraged ETN.

The two ETNs, which started trading on the NYSE on 18 August 2021, are both tracking the Solactive Fang Innovation Index which derives its components from the Solactive GBS United States Large & Mid Cap Index. To be included, companies must be headquartered in the United States and listed on a US stock exchange. Companies with a free-float market capitalisation of less than US$10 billion are excluded from the index. Thirty companies make up the final index composition.

‘MicroSectors focuses on innovating the ETP landscape with targeted investment trading vehicles across popular market segments like US energy, US large cap banks, and now US big tech,’ said Scott Acheychek, president of Rex.

C8 Technologies adds Indxx

C8 Technologies, the direct indexing fintech, has announced the addition of global index provider Indxx to its platform. C8 connects asset owners worldwide to investment professionals, and allows them to fully customise their investments using direct active and passive index tracking across asset classes.

‘Benefits such as greater control over individual holdings, lower cost, and diversification make direct indexing an appealing alternative for investors,’ said Rahul Sen Sharma (right), managing partner at Indxx, adding that more and more investors are now looking to replicate index performance through direct indexing.

The indices which are now available on the C8 platform include: Indxx Global Space Thematic Index; Indxx Disruptive Technologies Index; Indxx Hydrogen Economy Index; Indxx Climate Change Solutions Index; Indxx India Infrastructure Index; Indxx India Consumer Index and the Indxx Innovation Index.

Indxx joins other providers on the platform including Alerian S Network, Ned Davis Research, IHS Markit, Morningstar and S&P Dow Jones Indices. The latter joined the platform on 27 July 2021.

Solactive increases Canadian footprint

CI Global Asset Management, a subsidiary of Toronto-based CI Financial Corporation, has licensed four Solactive indices to provide its clients three plain vanilla benchmark ETFs, including a broad Canada ETF, and two ETFs tracking the largest 500 and 1000 US companies, respectively. Furthermore, to allow investors to participate in the performance of global healthcare companies, the company also released an ETF tracking the leaders in global healthcare innovation.

The index serving as the underlying for CI Global Asset Management’s CI Canadian Equity Index ETF is the Solactive Canada Broad Market Index. It aims to track various segments of the Canadian stock market, and constituents are selected and weighted according to free float market capitalization.

Solactive’s Global Benchmark Series serves as the foundation of both the CI US 1000 Index ETF and CI US 500 Index ETF. These ETFs track, respectively, the largest 500 and 1,000 companies listed on US exchanges. The indices utilized as the ETFs’ respective underlying are the Solactive GBS United States 500 CAD Index and Solactive GBS United States 1000 CAD Index.

The CI Global Healthcare Leaders Index ETF utilises the Solactive Developed Markets Healthcare 150 CAD Index as its underlying index. The index includes securities of global large and mid-capitalisation issuers from developed countries that are related to healthcare. For index inclusion, companies must be part of either the Solactive GBS Developed Markets Large & Mid Cap USD Index or the Solactive GBS Developed Markets Small Cap USD Index.

‘The Canadian market has always been home turf to us, where we hold significant market share in terms of ETF releases and assets under management,’ said Timo Pfeiffer (right), chief markets officer at Solactive. 

According to Pfeiffer, the Canadian has experienced a steep inflow of assets. ‘More in the first six months of 2021 alone than in entire 2020,’ he said.