Investment Product and Service Launches

RIA education organization rebrands; USCF adds nultiple ETPs to TD Ameritrade platform; Transamerica alters subadvisers, fees for Large Growth Fund; and more.

Art by Jackson Epstein

Art by Jackson Epstein

RIA Education Organization Rebrands

The Advisor Blockchain and Cryptoassets Council has changed its name to the RIA Digital Assets Council.

“Our council members unanimously agreed that the industry must ban the term ‘crypto’,” says Ric Edelman, financial adviser and leader of RIA Digital Assets Council. “By evoking images of death and skullduggery, it hinders consumer acceptance of these legitimate new technologies.”

He added that the word ‘blockchain’ isn’t much better; to many, ‘block’ means ‘to prevent’ and ‘chain’ means ‘tie up’ or ‘restrict.’ “If we’re to help consumers and investors embrace these exponential technologies, we must make them accessible—and that begins with the right verbiage,” Edelman adds. “We’re leading the way by using the correct phrase: digital assets.”

The RIA Digital Assets Council is focused on advancing the registered investment adviser (RIA) community’s awareness and knowledge of blockchain and digital assets so financial advisers can give their clients sound advice. Through RIADAC, advisers can connect with experts and enhance their understanding, for the benefit of their practices and their clients.

USCF Adds Multiple ETPs to TD Ameritrade Platform

USCF has added seven exchange-traded products (ETPs) to the TD Ameritrade ETF Market Center Program, which allows advisers to trade over 550 non-proprietary third-party ETFs commission free.

“Our goal is to bring previously difficult to access products to every investor. Offering that connection in a commission-free environment is a great combination,” says John Love, president and CEO of USCF. 

The USCF funds now available on the TD Ameritrade ETF Market Center include the USCF SummerHaven SHPEI Index Fund; the USCF SumemrHaven Dynamic Commodity Strategy No K-1 Fund; and a series of single commodity United States funds such as 12-Month Oil; Brent Oil; Gasoline; 12-Month Natural Gas; and Copper Index funds.

Transamerica Alters Subadvisers, Fees for Large Growth Fund

Effective on or about October 18, Transamerica Asset Management (TAM) will terminate its investment sub-advisory agreement with Jennison Associates LLC with respect to a portion of its Large Growth Fund, and will enter into a new investment sub-advisory agreement with Morgan Stanley Investment Management Inc.

The fund has two sub-advisers. Morgan Stanley will replace Jennison as a sub-adviser and Wellington will continue to act as a sub-adviser to the fund. TAM will continue to serve as the fund’s investment manager, according to a filing with the Securities and Exchange Commission (SEC).

In connection with the change in sub-adviser from Jennison to Morgan Stanley, the following will also change with respect to the fund: (i) the fund’s investment objective; (ii) the fund’s principal investment strategies; (iii) the fund’s principal risks; (iv) a sub-advisory fee schedule with respect to the fund; (v) the fund’s secondary benchmark will be removed; and (vi) the fund’s contractual expense limit on all classes of the fund will be extended until March 1, 2021.

The fund’s investment objective will be to seek to maximize long-term growth. It normally invests primarily in common stocks of companies that its sub-advisers believe have the potential for above average growth in earnings. Under normal circumstances, the fund invests at least 80% of its net assets (plus the amount of borrowings, if any, for investment purposes) in equity securities of large cap companies and other investments with similar economic characteristics. The fund considers large cap companies to be companies with market capitalizations that, at the time of initial purchase, exceed the market capitalization of the smallest company included in the Russell 1000 Growth Index. The fund emphasizes common and preferred stocks listed on the New York Stock Exchange and other U.S. securities exchanges and, to a lesser extent, equity securities that are listed on foreign securities exchanges and those traded over-the-counter.

The fund may invest up to 25% of its net assets in securities of foreign issuers, including issuers located in emerging market or developing countries and securities classified as American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), American Depositary Shares (ADS) or Global Depositary Shares (GDSs), foreign U.S. dollar denominated securities that are traded on a U.S. exchange or local shares of non-U.S. issuers.

The fund may utilize foreign currency forward exchange contracts, which are derivatives, in connection with its investment in foreign securities.

Effective August 2, the management fee is 0.65% of the first $1 billion; 0.635% over $1 billion up to $1.5 billion; 0.615% over $1.5 billion up to $2 billion; 0.605% over $2 billion up to $3 billion; 0.59% over $3 billion up to $4 billion; 0.575% over $4 billion up to $5 billion; and 0.57% in excess of $5 billion in average daily net assets. Prior to August 2, the management fee was 0.65% of the first $2 billion; 0.64% over $2 billion up to $3 billion; 0.63% over $3 billion up to $4 billion; and 0.61% in excess of $4 billion in average daily net assets.

The sub-advisory fee schedule with respect to the portion of the fund sub-advised by Wellington Management Company LLP has also been changed, but TAM, not the fund, is responsible for paying the fund’s sub-advisers.

Roundhill Launches Esports and Digital Entertainment ETF

Roundhill Investments, a newly formed exchange-traded fund (ETF) sponsor focused on developing financial products that appeal to the next generation of investors, announced that Roundhill BITKRAFT Esports & Digital Entertainment ETF options are now listed for trading on the NYSE Arca Options and NYSE American Options markets.

The Roundhill BITKRAFT Esports and Digital Entertainment ETF is designed to offer retail and institutional investors exposure to electronic sports and digital entertainment by providing investment results that closely correspond, before fees and expenses, to the performance of the Roundhill BITKRAFT Esports Index.

The Roundhill BITKRAFT Esports Index is the first rules-based index designed to track the performance of the growing market of electronic sports, or ‘e-sports.’ The Index consists of a modified equal-weighted portfolio of globally-listed companies who are actively involved in the competitive video gaming industry. This classification includes, but is not limited to, video game publishers, streaming network operators, video game tournament and league operators/owners, competitive team owners and hardware companies.