Product & Service Launches – 7/18/24

Pearl Diver Credit Co. Inc. Launches Initial Public Offering

Pearl Diver Credit Co. Inc. announced the launch of its initial public offering. A closed-end, 40 Act fund, it will trade on the New York Stock Exchange under the ticker “PDCC.”

The IPO will use the proceeds from the capital raised to build diversified portfolios of senior secured U.S. corporate loans through investments in equity tranches of collateralized loan obligations. PDCC is seeking to raise $44 million through the issuance of 2.2 million shares at $20 per share.

The company has granted the underwriters a 45-day option to purchase up to an additional 330,000 shares of common stock to cover over-allotments, if any. Pearl Diver Capital LLP, the Company’s investment adviser, or its affiliates will pay the full amount of the sales load in connection with this initial public offering and all of the company’s organizational and offering expenses.

Following the IPO, and assuming the underwriters do not exercise the option to purchase additional shares, the company’s net asset value would be $129.3 million. The company will provide registered investment advisers, family offices and other firms serving high-net-worth and ultra-high-net-worth investors with an opportunity to gain access to sophisticated, alternative credit strategies that have historically only been accessible by pensions, endowments and other institutional investors.

Ocean Park Asset Management Announces Launch of 1st ETFs

Ocean Park Asset Management launched its first exchange-traded funds on July 11.

The Ocean Park ETFs focus on trend following, security selection and a trailing stop discipline. The four ETFs, two focused on equity and two on fixed income, each have the objectives of providing total return and limiting exposure to downside risk:

• Ocean Park Domestic ETF invests in U.S. equity ETFs in uptrends, based on market capitalization, styles, factors, sectors and industries. It can hold cash equivalents when U.S. Equity ETFs are not trending;
• Ocean Park International ETF invests in international equity ETFs, including emerging market ETFs, in uptrends. It focuses on market capitalization, styles, factors, regions and countries. It can hold cash equivalents when international equity ETFs are not trending;
• Ocean Park Diversified Income ETF invests in uptrending bond market sectors, including Treasurys, corporate and municipal bonds, mortgage-backed securities, international and emerging market bonds, convertible bonds, preferred securities and bank loans. It can hold cash equivalents when fixed-income ETFs are not trending; and
• Ocean Park High Income ETF invests in high-yield bond market sectors in uptrends, including corporate and municipal bonds, emerging market bonds, preferred securities and bank loans. It can invest tactically in Treasury ETFs and hold cash equivalents when high-income and Treasury ETFs are not trending.

TIAA Launches AI Platform to Deliver Lifetime Income Solutions and Services

TIAA launched a proprietary generative artificial intelligence technology platform, TIAA gAIt, expanding its focus on AI to generative AI from traditional. TIAA gAIt, incubated by TIAA Client Tech Labs, leverages generative AI technologies and large language models.

“We at TIAA are harnessing AI, including Generative AI, to drive innovation in our product and service offerings and equip our employees with more relevant and robust information to help our clients,” said Sastry Durvasula, TIAA’s chief information and client services officer, in a statement.

According to the firm, TIAA gAIt:

• Helps TIAA associates more quickly and insightfully answer client questions;
• Gives clients a better search experience, providing answers to complex questions on tiaa.org;
• Allows Nuveen Asset Management to analyze large amounts of public research materials; and
• Raises associate awareness in cybersecurity through phishing and learning programs.

“Our new proprietary GenAI platform is a ‘game-changing’ training tool for our associates, regardless of role,” said Swatee Singh, TIAA’s chief data and AI officer, in a statement. “From onboarding new hires, to spreading cybersecurity awareness, ‘TIAA gAIt’ offers an effective and ethical colleague learning option.”

Betterment, Goldman Sachs Launch Industry-First Tax-Smart Bonds Portfolio

Betterment LLC and Goldman Sachs Asset Management announced the Goldman Sachs Tax-Smart Bonds portfolio, which leverages Goldman Sachs’ expertise in bond markets and Betterment’s automation. The portfolio seeks to generate after-tax yield.

The portfolio is designed for Betterment clients in higher tax brackets, who want to access a tax-smart bond strategy which is potentially lower risk than equity investing.

While high-interest cash savings products can be beneficial for shorter-term needs, taxes can reduce yields over time. This new portfolio offers short-duration bond ETFs, with holdings that Betterment will personalize for its customers based on their tax situation.

“It is important for investors seeking to create and safeguard long-term wealth to consider after-tax returns in their portfolios,” said Padideh Raphael, global head of third-party wealth at Goldman Sachs Asset Management, in a statement. “This latest collaboration, combining Goldman Sachs’s investment capabilities with Betterment’s innovative technology platform and customer-first approach, will allow us to work together on behalf of clients who seek attractive after-tax bond yields.”

AllianceBernstein Launches AB International Low Volatility Equity ETF

AllianceBernstein Holding LP and AllianceBernstein LP launched AB International Low Volatility Equity ETF as an actively managed exchange-traded fund on the New York Stock Exchange.

“With the launch of our 15th ETF, we look forward to continuing our commitment to creating model-friendly products that, we believe, fit client needs in periods of growth and volatility,” said Noel Archard, AB’s global head of ETFs and portfolio solutions, in a statement. “ILOW will allow investors to tap into additional investment opportunities with exposures beyond the U.S.”

ILOW’s investment objective is long-term capital growth. The fund invests primarily in large-cap and mid-cap non-U.S. companies. AB seeks to manage the fund so that it is subject to less share price volatility than many other international strategies. Global trading firm Jane Street is the lead market maker for the fund.

“AllianceBernstein has had a large presence managing assets in the equities space for many years, and we believe this launch only strengthens our position,” said Nelson Yu, AB’s head of equities, in a statement.