You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters.
Asset managers WisdomTree and Halo Investing have launched Halo-WisdomTree Structured Income Strategy, a defined outcome separately managed account strategy.
The partnership pairs WisdomTree’s asset allocation expertise with Halo’s structured note capabilities. It will be calibrated quarterly using WisdomTree’s model portfolio alongside Halo’s income-focused structured notes, creating a product that “mirrors an institutionally managed ETF-based model portfolio while incorporating built-in yield enhancement and principal protection features,” according to the firms.
The strategy invests across U.S., international and emerging markets and is available as an SMA through the Halo platform. (Structured notes are hybrid securities that typically combine both debt and equity instruments to achieve specific goals, such as growth, income or risk management.)
“In an environment where investors are seeking income and greater resilience, this strategy is designed to help advisors pursue more consistent outcomes while managing risk,” Jeremy Schwartz, global chief investment officer at WisdomTree, said in a statement.
Defined-outcome products, such as buffer ETFs, have been a major area of growth in the asset management space. Recent research from Cerulli found that defined outcome ETFs could grow fivefold to $334 billion in AUM by 2030.
The Halo-WisdomTree Structured Income Strategy is managed by Dennis Monohan, head of investment solutions at Halo, with strategic allocation and model portfolio guidance from Joe Tenaglia, director of model portfolios at WisdomTree
“This defined outcome strategy helps advisors solve for clients seeking income while managing equity exposure,” Monohan said in a statement. “Collaborating with WisdomTree allows us to combine structured note innovation with institutional asset allocation expertise, giving advisors confidence in a category that has historically been less accessible.”
Separately, WisdomTree has continued expanding its presence in the SMA marketplace, including its recent collaboration with Quorus to provide its investment strategies in a tax-efficient SMA format.
It’s the latest addition in a broader wave of innovation in the SMA space. For example, BlackRock and Partners Group recently launched a multi-asset private-market SMA for private wealth clients.
Leave a Reply