SOURCE LAUNCHES VIX FUTURES ETF
European institutional investors will benefit from the launch of the first volatility-linked ETF in Europe to track the S&P 500 VIX Short-Term Futures Total Return index. The performance of the index does differ from the Vix but historically the two have had a strong positive correlation. Issued by Source in conjunction with Nomura, the S&P 500 VIX Futures ETF has a 0.6 per cent annual management fee, is UCITS III-compliant and is listed on the LSE. Until now, European investors have only been able to trade VIX futures contracts or use structured notes.
IFDS PURCHASES PERCANA
Financial services outsourcing provider International Financial Data Services (IFDS) yesterday entered the life assurance and pensions servicing sector with its purchase of Percana Group, an outsourcing services and software provider to the global life and pensions industry. This acquisition follows IFDS?acquiring an initial interest in Percana in September 2008. IFDS said it marks the next stage in the company’s growth plans and expansion of both its product scope and market reach. Percana manages a wide range of life and pensions products.
NORTHERN TRUST SETS UP NEW PLATFORM
Investment management administration provider Northern Trust yesterday announced that it has established a platform that will allow managers to offer proprietary investment strategies in a cross-border fund vehicle designed to appeal to large institutional investors. Northern Trust’s Serge Boccassini said: “This platform will help investment managers gain access to the European market through a UCITS fund that also protects the tax status of the underlying institutional investors.” The vehicle is recognised as tax-transparent in many jurisdictions.