The Strategy Data Exchange (SDX) has added a suite of tactical and risk-managed strategies by Lee Capital Management (LCM) to its model manager gateway for roboadvisors, private banks, brokers and third-party asset managers.
"The LCM team has a long-proven history of generating alpha for investors," said Frank Troise (pictured), founder of SDX, a subsidiary of Singapore-based SoHo Capital. "The positive response from our distribution partners in Asia and Europe has confirmed investor demand for the suite of strategies."
LCM has made their strategies available as model portfolios for Asia Pacific investors via the SDX platform and is planning to roll out and make the models available in Europe through the same platform.
The initial strategies available include the Lee Adaptive large cap sector, US equity, global equity and global allocation. 'The platform enables the immediate deployment of our strategies across the widest spectrum of distributors and manufacturers throughout Asia,' said Joseph Demmler, managing partner at LCM.
According to Troise, "these are very successful, proven, mature investment managers and adding them to the platform is testimony to the value both they and SDX's distributors see in the platform." The platform continues to expand after the exclusivity partnership with UBS ended earlier this year, according to Troise. "It is important that we remain agnostic and responsive to our client requests, and they simply wanted more choice in the market with regards to which investment bank."
"Investors are unwinding their fixed-income, levered, fund-linked trades and moving into the equities market via low volatility, strategic, quantitative, systematic and protected solutions, and structured products can offer all of that, so we feel they're well placed to drive some activity," said Troise.
SDX has also added a number of tier-one investment and private banks active in the Asia-Pacific structured products market, including Julius Baer, Credit Suisse and JP Morgan, as demand for actively managed certificates (AMCs), trackers and other structured investments increases in the region, according to a source. Societe Generale has increased its investment banking and hedging activity around structured solutions, following the sale of its private bank to DBS in 2014, according to the source. "Their success is attributable to its B2B model, as it is no longer competing with other private banks such as Credit Suisse or JP Morgan on the buyside," said the source.
SG has dominated the bond provider tables across Asia Pacific since 2015, according to SRP data. The French bank issued US$3.4 billion worth of products in Apac last year, and US$4.6 billion this year.
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