Goldman Launches New Strategic Beta ETF
New York-based Goldman Sachs Asset Management has launched an ETF aimed at providing exposure to investment opportunities in developed equity markets outside of the U.S.
The Goldman Sachs ActiveBeta International Equity ETF (GSIE) will seek to track the Goldman Sachs ActiveBeta International Equity Index.
The index is constructed using a proprietary performance-seeking methodology that weights stocks in the MSCI World ex USA Index on value, momentum, quality and low volatility.
“[This] ETF leverages our broad global expertise to deliver access to slices of international markets in a sophisticated and cost-effective way,” said Michael Crinieri, GSAM’s global head of ETF strategies. “With the addition of GSIE to our ActiveBeta lineup, investors are even further equipped to capitalize on investment opportunities stemming from structural adjustments abroad and manage risk brought on by increasingly volatile markets.”
The fund is priced at 35 basis points, 13% lower than the index fund average in the category.
In September, Goldman Sachs launched two other Active
Beta products: a U.S. Large Cap Equity ETF and an Emerging Markets Equity ETF. In the first two months after their launch, the new products grew to $105 million and $181 million in assets, respectively.
“The launch of our third ActiveBeta product underscores our commitment to not only meet but to anticipate the needs of investors by offering what we consider to be the next generation of ETF investing,” said Gary Chropuvka, Goldman’s head of customized beta strategies.
Janus Capital to Launch Two Small-Cap ETFs
Denver-based Janus Capital Group is launching two new “beta enhanced” ETFs.
The Janus Small Cap Growth Alpha ETF and the Janus Small/Mid Cap Growth Alpha ETF will be the first ETFs to launch since Janus’s purchase of VS Holdings, the parent company of VelocityShares, in November 2014.
“These products are intended to extract the science portion of Janus’s small-cap investment process and deliver it in a tax-efficient, transparent and low-cost ETF vehicle to meet the increasing client need for such products,” said Jonathan Coleman, portfolio manager of Janus Triton and Janus Venture Funds.
As of September 30, 2015, investment in Janus’s exchange-traded products had grown to $3.5 billion in assets across 17 different products.
Interactive Data Unveils Liquidity Indicators for Fixed-Income Traders
New York-based Interactive Data has launched a new service for fixed-income traders.
The Liquidity Indicators Service is designed to support firms’ liquidity-risk-management needs using Interactive Data’s fixed-income evaluated pricing and reference data content.
The indicators can be used to analyze a security’s liquidity and compare it with that of other securities in groupings by issuer, by sector or by asset class or against bonds with similar risk characteristics such as yield or duration. They include estimates of each security’s projected trade volume capacity, which can be used to estimate how long it will take to liquidate a position under various stress assumptions.
Schroder Introduces Two New Mutual Funds
New York-based Schroder Investment Management North America has launched two mutual funds, the Schroder Emerging Markets Small Cap Fund and the Schroder Short Duration Bond Fund.
The funds are designed to seek long-term total return alongside preservation of capital.
The small-cap fund is managed by Allan Conway, Matthew Dobbs, James Gotto and Richard Sennitt, while the emerging markets offering is managed by Andrew Chorlton, Edward Jewett, Richard Rezek Jr., Julio Bonilla and Neil Sutherland.
Earlier this year, Schroder also introduced its R6 share class with no embedded shareholder servicing fees. The new funds will be available in both R6 and investor share classes.
Guardian Opens Index Participation to Whole Life Policies
New York’s The Guardian Life Insurance Company of America is getting on the growing S&P 500 index bandwagon.
The company recently announced that it is allowing whole life insurance policyholders to allocate a portion of the cash value from paid-up additions (purchases of additional insurance, such as death benefits, that have cash value) to a new Index Participation Feature. This feature links the cash value to the performance of the S&P 500 Price Return Index.
Cash value added to the new feature will be subject to a 12.5% cap and a 4% guaranteed floor, limiting the policy’s downside exposure.
In addition, the feature will allow policyholders to change their allocation for future index periods, allowing some flexibility over time.
Fiserv Adds InvestEdge to Unified Wealth Platform
Brookfield, Wis.-based Fiserv is partnering with Bala Cynwyd, Pa.-based InvestEdge to add new options to its technology platform.
Under the arrangement, InvestEdge’s data management, analytics and reporting solutions would be made available on Fiserv’s Unified Wealth Platform.
InvestEdge’s reporting capabilities will allow clients to access 40 customizable report options and include new messaging and e-statement report delivery.