BofA, CS and SG deploy new prop indices in the US; Goldman partners with UK distributor to launch deposit plan; Diginex to offer structured and listed products in its new Equos platform…

Barclays has licensed the new Solactive Climate Change Europe BTI Index on an exclusive basis to develop a range of structured products.

The index has been designed using ‘unique scientific data’ to meet the needs of investors looking to capitalise on investment opportunities arising from the global shift towards a lower carbon economy.

The Solactive Climate Change Europe BTI Index tracks European companies with low global warming impacts - measured in degrees Celsius - and maximises investor exposure to companies with emission reduction targets. The index is also designed to enhance return profiles by applying additional smart beta filters, only including stocks with both lower volatility and a consistent track record of growing dividends.

The index is a sub-index of the Solactive Climate AVG Target Europe Index which tracks low climate impact companies amounting to 260 constituents out of a universe of 600 of the largest European companies.

New prop indices enter the market

US Life insurance firm American Equity has added three new custom indices to enhance its AssetShield fixed index annuity (FIA).

The annuity product line which offers five, seven and 10-year terms now features new equity and multi-asset index options in addition to its existing S&P 500 Index alternatives. There is also the opportunity to purchase a higher rate on crediting strategies for added growth potential.

The new additions follow the recent expansion of the insurer’s suite of indexed annuities with the launch of its Destinations FIA in mid-2020 linked to the BofA Destinations Index, a new volatility-controlled index developed with Bank of America.

The BofA Destinations Index combines three assets using two time-invested investment principles that are balanced risk and momentum and will act as one of three new indices available for the FIA’s crediting strategies.

The other two investment bank developed indices include the Credit Suisse Tech Edge Index, and SG Global Sentiment Index developed by Société Générale.

The CS Tech Edge index combines four US tech and biotech ETFs and two fixed income components. It employs a volatility control mechanism, powered by the bank’s partner Salt Financial, to identify changing market conditions.

The SG Global Sentiment index boasts multi-asset classes and evaluates market sentiments to determine whether a market is in a growth, intermediate or shrinking phase. Each phase is associated with an allocation of diverse assets that include equities, bonds and commodities in domestic, European and Asian markets.

Idad partners with Goldman Sachs to launch structured deposit

Structured investment specialist firm Investment Design & Distribution (Idad) has launched a deposit plan.

The new fully protected plan which is also covered by the UK Financial Services Compensation Scheme (FSCS) is based on Goldman Sachs structured deposit linked to the FTSE 100 index.

The seven-year product is part of the Idad’s Callable FTSE deposit range and will pay 3.5% pa if Goldman calls the deposit early on any annual observation date or 0.5 times any growth in the FTSE 100 index.

“We firmly believe that in the UK retail market, structured deposits have a place in many portfolios given their conservative, low risk characteristics,” said Thom Gascoigne, head of Idad UK. “This, coupled with ultra-low interest rates and yield on government and investment grade debt, investors really are on the ‘hunt for yield’.”

According to Gascoigne, the new deposit is suited “particularly within a SIPP or ISA for the best tax relief and within pensions due to the capital protection”.

“Longer term interest rates have been on the rise over the last few months and this has made structured deposits more viable,” said Gascoigne, adding that Idad is seeking to fill de gap left by Investec after 12 years offering structured deposit plans to UK retail advisors.

Idad will continue to launch the Callable Goldman Sachs deposit plan throughout 2021 “helping advisors continue to offer structured deposits to their clients as and when appropriate”.

Luma continues annuities push

Leading US structured products and annuities platform Luma Financial Technologies has onboarded Insurance Technologies as its latest partner to bring their annuities solution, Luma Annuities, to the market.

Luma initially grew its US footprint by establishing itself as a dominant player in the fintech industry and has since broadened its offering to extend to annuities, given their increasing popularity over the past few years.

The firm has recently gone international and expanded into both the Latin American and European markets.

Luma Annuities is a ‘turn-key’ annuity sales and lifecycle management solution that strives to combat the biggest hurdles facing advisors selling annuities today.

“Our mission has always been to simplify product complexities and give advisors smart solutions that they can believe in,” said Jay Charles, Director of Annuities at Luma Financial Technologies. “By partnering with Insurance Technologies and leveraging the FireLight platform’s embedded API capabilities, we bring a seamless order entry experience to financial professionals around the world.”

Insurance Technologies is the provider of FireLight, a multi-carrier end-to-end insurance and retirement sales platform. By embedding the FireLight solution within the Luma platform, customers will receive a more cohesive sales experience, allowing them to manage products and rules in one centralised location.

“We’re extremely excited to partner with a company that is adding tremendous value to the annuity category at a time when Americans need guaranteed income options more than ever,” said Doug Massey, EVP of Sales and Relationship Management, Insurance Technologies.

Diginex unveils upcoming Equos Investment Products business launch

Digital assets financial services company Diginex has announced the launch of the Equos Investment Products business, which will include cryptocurrency based structured products and listed investment products.

Behind the new business line is Shane Edwards, former head of equity derivatives structuring at UBS and head of investment products at Diginex, and is part of the work the former UBS equity derivatives global head has done to increase the firm’s derivative product set to include options and dated futures, as well a wider range of coins, and 12 additional fiat currencies, that will be made available to customers who trade on Equos.

Diginex will also integrate borrowing and lending capabilities into its digital asset custodian Digivault and cryptocurrency exchange Equos.

‘With the current momentum we are seeing in crypto assets, wider corporate interest and increasing retail participation, it is important to be moving as fast as we can,’ said Richard Byworth, CEO of Diginex. ‘This is a race, and we are focused on winning it.’

Diginex’s service include a cryptocurrency exchange, trading solutions, custody, borrowing & lending, asset management and capital markets capabilities. The firm has been listed on Nasdaq since October 2020.

The announcement comes on the redemption of all of its outstanding public warrants which will be used to drive Diginex's growing product line and the ongoing investment into its digital asset ecosystem, whilst accelerating its expansion plans. 

Privatam enters JV with securitisation specialist

Monaco-based wealthtech provider Privatam has announced a joint venture with OptiAssets to provide asset and wealth managers access to securitisation services and securitised assets.

The new partnership is aimed at the growing need from asset and wealth managers to securitise asset class for their clients including traditional, liquid assets, as well as alternative, non-liquid assets that can be tailored to the investor’s specific requirements.

Under the partnership OptiAssets will increase its scale and reach via Privatam’s digital platform technology, to control each OptiProduct and track their lifecycle, as well as monitoring their earnings and performance, while Privatam will be able to widen its range of products and services as well as offer ‘greater flexibility, increased access and cost-efficient investment vehicles to investors’.

Privatam believes securitisation and asset repackaging presents an opportunity for its clients to access bespoke asset risk.

OptiAssets entered the securitisation market in 2019 by offering services on traditional assets such as stocks, funds and structured products but also on alternatives such as real estate, private equity or private debt assets.

Some of the firm’s recent transactions include the securitization of a major real estate project next to the Burj Khalifa Tower in Dubai; real estate projects in New York and the Dominican Republic; a forest plantation in Brazil; commodity trade finance for a Swiss asset manager; and an ETFs investment strategy for a Spanish asset manager.

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