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Leveraged sharesa single-action tactical ETP provider, has announced its entry into the sparsely populated white label ETP market in Europe.
Addressing the growing number of asset managers looking to introduce investment strategies to Europe, the Leverage Shares white label platform will provide these companies with the infrastructure to create and launch ETPs without having to create their own. full service company.
White label platforms aim to lower barriers to entry for potential ETP issuers by offering a comprehensive set of services including product development, compliance, capital markets, sales, marketing and distribution .
According to Leverage Shares, its platform will be able to offer starting prices 70-90% below existing white label market rates, opening up the possibility for even relatively small fund managers to have their own ETP. .
The Leverage Shares white-label platform launched its first product last month with the launch of active management Kronos ETP Strategy (KRON LN) on London Stock Exchange. KRON seeks to outperform major US equity indices over a full market cycle using a trend-following strategy that alternates between short and long exposure to US equities.
Raj Sheth, Chief Commercial Officer at Leverage Shares, said: “As a pioneer of single-share leveraged ETPs, we have built a remarkable track record and platform capability to effectively launch ETPs. Our experience, costs and bandwidth provide a unique platform for fund managers looking to launch their ETP strategy without having to deal with the high costs, complexities and logistical burden of setting up the distribution.
Although leveraged shares may appeal to potential issuers from a pricing perspective, ETPs developed through the firm’s platform will not carry the UCITS designation which is widely seen as representing safe and well-regulated investments in Europe. . As UCITS funds are popular with investors looking to invest across Europe, the lack of a UCITS framework may deter some clients.
The platform is only the third ETP white label service in Europe.
Canvas being acquired and assimilated by Legal and general investment management in 2017, the only active white label platform in Europe in recent years was the independent company HANetf. HANetf, which launched its first ETP in September 2018, currently has a roster of 44 products collectively housing approximately $1.7 billion in assets.
Last month, crypto issuer Iconic backgrounds announced its white label ambitions with the company reportedly in talks with several asset managers to introduce nuanced crypto asset ETPs in the near future.