Tue, Sep 30, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Malta launches its first alternative investment ETF under new Securitization Act

Wednesday, July 23, 2014
Opalesque Industry Update - The first Exchange Traded Instrument (ETI) issued under the Malta Securitization Act went live recently on the European Wholesale Securities Market (EWSM). The "Dynamic Trading Strategies ETI" is linked to and backed by a performance linked bond issued by a Special Purpose Acquisition Vehicle allowable under the Securitization Act of Malta with the sole purpose of holding Managed Accounts at Interactive Brokers LLC and Sensus Capital Markets plc.

The EWSM is a joint venture between the Malta Stock Exchange and the Irish Stock Exchange and acts as an EU regulated market for arrangers and issuers of wholesale debt products.

Argentarius ETI Management is the arranger for this innovative financial product which is issued by ETI Securities one of the Special Purpose Vehicles (SPV) incorporated under the Securitisation Act in Malta which delivers a high level of protection for the investors within a favourable regulatory framework and with the added advantages of special tax arrangements.

Andreas Woelfl, Argentarius’s CEO said “This really is a first for Malta and clearly demonstrates the advantages of Malta as a domicile for the issuance of Exchange Traded Instruments backed by and linked to the performance of Alternative Investments”

This particular issue is the first of its kind in Malta because the Exchange Traded Instrument (ETI) is linked by way of a performance bond to the underlying assets and so its performance is derived from that of a Management Account consisting of commodity futures contracts with the result that the ETI is an eligible asset class for a UCITS Fund even though the commodity futures contracts do not qualify as eligible assets under the UCITS directive.

For the UCITS Fund Manager this means that Argentarius can offer a diversification into additional asset classes, especially alternative investments asset classes with a reasonable cost structure.

The ETI structure was confirmed by the European Commission as falling within the definition of an eligible UCITS security regardless of the eligibility of the underlying assets as long as certain criteria are met. Issuance on a regulated market such as EWSM is one of those criteria and so the availability of this exchange in Malta is a key factor for UCITS Fund Managers that seek to increase diversification within their funds.

For Argentarius this heralds the launch of their european-wide expansion “We are currently talking to many of the leading advisers to the fund industry in Germany, Malta, Switzerland and the UK and we are looking at several new issues currently” said Andreas Woelfl.

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Socially responsible investments grow in demand, but performance questions persist[more]

    Komfie Manalo, Opalesque Asia: A study by financial services firm TIAA-CREF showed that interest in socially responsible investing (SRI) is increasing rapidly, but investors are still asking if investing in an SRI strategy

  2. Regulatory - Ireland launches structure for passporting loan origination funds within EU[more]

    From Asiaasset.com: The Irish Funds Industry Association (IFIA) has introduced new loan origination capabilities that will offer Asian managers and investors a new structure under the European Union’s (EU’s) Alternative Investment Fund Managers Directive (AIFMD). The new structure will allow the mar

  3. Europe - Ed Miliband's war on hedge funds could damage City of London[more]

    From Telegraph.co.uk: Ed Miliband’s plans to wage war on hedge funds could be potentially more damaging to the City of London than even the financial transaction tax (FTT), senior banking sources warned on Tuesday night. The Leader of the Opposition took aim at a number of industries as part of his

  4. News Briefs - SEC probes Pimco ETF over pricing irregularities, BEPs: Action plan released and UK first to adopt country-by-country reporting[more]

    SEC probes Pimco ETF over pricing irregularities The Securities and Exchange Commission is investigating Pimco’s pricing of exchange traded funds, the latest cloud to hang over the world’s largest bond manager, which has been dogged by poor performance and management infighting. Pimco on

  5. Outlook - Julian Robertson: There are two bubbles that can bite us[more]

    From Businessinsider.com: Legendary hedge fund manager Julian Robertson gave a warning about two bubbles that could "bite us" at Bloomberg Market's Most Influential Summit. "I agree with the fact that the economy is definitely getting better. I think the cause of that is two bubbles that will