JVB Financial to Offer a New Form of Defined Outcome UIT Developed by Olden Lane
PRINCETON, NJ and BOCA RATON, FL – March 31, 2017 – J.V.B. Financial Group, LLC (member of FINRA and SIPC, and an indirect majority owned subsidiary of Cohen & Company (NYSE MKT: IFMI)) (“JVB Financial”) today announced that it has partnered with Olden Lane Securities LLC (“Olden Lane”) to launch a new series of innovative unit investment trusts (UITs) called Target Outcome Funds.
Target Outcome Funds are a new category of UITs developed by Olden Lane and designed to offer a liquid, transparent and cost-effective vehicle for outcome-driven returns. Through combining US Treasuries and exchange-listed option contracts which reference ETFs tracking broad-based equity indexes, Target Outcome Funds can offer efficient exposure to equity-market benchmarks within certain risk parameters, such as protection against downside risk. UITs developed on Olden Lane’s platform are designed to provide better liquidity and transparency, and lower counterparty risk, versus similar products currently offered as structured notes.
The first series, offered by JVB Financial, is titled “Capped Performance Portfolio with Buffer Protection Linked to the SPDR® S&P 500® ETF Trust” and seeks leveraged capital appreciation based on the three year price performance of the SPDR® S&P 500® ETF Trust. The Trust’s return will be subject to a cap of 25% and will seek to provide protection against the first 15% of any decline in the price of the reference fund, in each case, before fees and expenses.
“The leveraged buffered strategy has been a very popular structure used in wealth management channels for years. We’ve seen advisors and portfolio managers invest hundreds of millions of dollars in this strategy in the form of structured notes,” said John G. Tessar III, CFP®, Head of Structured Investments at JVB Financial. “Through our partnership with Olden Lane, we can now offer a similar strategy in UIT form with improved price transparency, daily pricing and liquidity, and reduced counterparty risk.”
“We are excited to partner with JVB Financial to launch our first product in what will be the next generation of liquid alternatives,” said Michel S. Serieyssol, Olden Lane Founding Partner. “Our firm was founded on the belief that UITs offer a superior structure for outcome-driven investments. We’ve refined and improved the UIT architecture so that it can be utilized as an innovative portfolio management tool to help investors manage their portfolios with greater discipline, purpose and risk management. UITs developed on our platform offer strong liquidity and transparency, reduced counterparty risk, and ’40 Act registration, resulting in more compelling and effective products for investors.”
Olden Lane, established in 2015, has assembled a team with decades of experience in alternative investments, liquid alternatives, product structuring and distribution – experience which has been central to the firm’s ability to innovate.