The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.

Leonteq
This week Leonteq announced the introduction of its ETP+ label, which is designed to provide enhanced safety for investors. The company is also launching its first exchange traded product (ETP) linked to the FuW Swiss 50 Index NTR under the new label.

Leonteq said the ETP+ label offers distinct innovations for the ETP market in Switzerland. It uses a reputable custodian and collateral agent, both based in Switzerland, and provides for daily independent checks, which serve as key mitigators of the issuer risk, the firm said in a statement. 

Leonteq said it is partnering with SIX to reduce issuer credit risk and to protect ETP+ investors' interests by collateralising any ETP+ liabilities over the product lifecycle. Under this arrangement, collateral is held at SIX SIS AG, and SIX Repo AG, in its function as collateral agent, is responsible for daily inspections of the collateral. The collateralisation technique used for ETP+ is based on an established framework with SIX that has been in place since 2012, the firm said.

Nerin Demir, head of repo & collateral management at SIX said: "We are pleased to support the ETP segment with our Triparty Collateral Management solution. Our service meets the highest standards of security and offers additional investor protection.” 

Leonteq said it is the first issuer of ETP products in the Swiss market which is licensed as a securities firm by FINMA. Furthermore, the company said it has an investment grade rating assigned by Fitch Ratings Ltd, a strong capital base totalling around SFr890 million ($935 million), and a proven track record spanning more than 15 years. 

Leonteq said it differentiates from existing ETP issuers which tend to be special purpose vehicles without a proven track record, rating or regulatory supervision and only with minimum paid-in capital.

Alessandro Ricci, head of investment solutions at Leonteq continued: “We are pleased to launch the ETP+ label in Switzerland, demonstrating our innovative strength as a leading provider of investment solutions. With SIX, investors can rely on a reputable Swiss-based counterparty and be assured that their investment is safeguarded.”

In this context, Leonteq said it is launching its first ETP+ on the FuW Swiss 50 Index NTR developed by the editorial team of Finanz und Wirtschaft. 

With the FuW Swiss 50 Index NTR, which includes the top 50 tradable Swiss companies, investors have access to an appropriate representation of the Swiss equity market. Every six months, the companies in the index are selected according to their free float market capitalisation and considering minimum liquidity requirements. The top 25 companies are double-weighted, while the remaining 25 companies are single-weighted, resulting in a broader diversification compared with market capitalisation weighted indices, the firm said. 

The index is a net total return index, meaning that net dividends are automatically reinvested. The ETP+ on the FuW Swiss 50 Index NTR, which is listed on SIX Swiss Exchange, is available to Swiss retail and institutional investors with a minimum investment amount of Sfr26. The ETP on the FuW Swiss 50 Index NTR is also currently the only equity-based listed ETP at SIX Swiss Exchange.

Ricci said: “We are excited to expand our successful collaboration with Finanz und Wirtschaft, a leading financial newspaper in Switzerland. The first ETP+ issued by Leonteq in cooperation with FuW is an authentic ‘made in Switzerland’ product, giving investors access to an attractive offering with exposure to the Swiss equity market.”