VelocityShares announced the launch of two new composite forward Libor rate linked exchange-traded notes: VelocityShares Long Libor ETNs (ULBR) and VelocityShares Short Libor ETNs (DLBR).
ULBR is linked to the Janus Velocity Long Libor Index, which aims to approximate the daily performance of a hypothetical long investment in the composite forward Libor rate as if the rate itself were an asset that could be invested in, and DLBR is linked to the Janus Velocity Short Libor Index, which aims to approximate the daily performance of a hypothetical short position in the composite forward Libor rate, as if the rate itself were an asset that could be shorted.
The ETNs are issued by Citigroup Global Markets Holdings, and all payments due on the ETNs are guaranteed by Citigroup Inc.
"In today's unique interest rate environment, many investors are looking for tools that can be used to manage interest rate risks, and we are very pleased to provide the first ETNs allowing them to do so with daily exposure to the composite forward Libor rate," said Nick Cherney, senior vice president, head of exchange-traded products for Janus Henderson. (VelocityShares is a Janus Henderson Group brand.)
The composite forward Libor rate on each day is equal to the weighted average of the forward 3-month U.S. dollar Libor rates implied in the daily settlement prices of the next 8 quarterly Eurodollar futures contracts, where these contracts have a weighted average tenor of approximately one year.
Principal Financial Launches New Retirement Design Solution
Principal Financial Group launched a new retirement modeling planner that provides a real-time assessment of retirement plan design scenarios.
"The advanced modeling planner provides a single platform to model best practice plan design features," said Jerry Patterson, senior vice president, retirement and income solutions at Principal, said in a statement. "Plan sponsors and their advisors can conduct automatic enrollment, auto-escalation and stretch-match formulas – in real time with real client data – to identify the most beneficial retirement solutions for their business and employees."
The advanced modeling planner is designed to show how automatic plan design features, such as enrollment and escalation, are the most effective way to show the impact on participant retirement readiness. It also allows advisors to see what action can be taken to improve overall retirement plan health and to view projected cost estimates of matching contributions (as a percentage of payroll reported).
Plans with eligible employees in a single location will be able to use the modeling planner, provided all participants are subject to the same automated plan provisions. Plans with eligible employees in multiple locations will be available by year end. This includes 401(k), 403(b) and 457 plan types.
The advanced modeling planner is being rolled out in phases. Principal Financial plans to give more than 2,000 plan sponsors and their respective advisors access to the advanced modeling planner over the next few weeks. Subsequent rollout plans are underway.
New ETF Provides 300% Exposure to J.P. Morgan EMBI Global Core Index
