Our weekly roundup of industry highlights
SS&C Technologies to acquire DST Systems
Financial-services software provider SS&C Technologies said it will acquire DST Systems, a provider of proprietary information processing and servicing solutions, for approximately $5.4 billion. The firms agreed to an all-cash transaction at $84 per share plus debts assumed by SS&C.
The deal represents Windsor, Connecticut-based SS&C's largest to date. The acquisition of Kansas City, Missouri-based DST will significantly expand its U.S. retirement and wealth management footprint, and add over 110 million investor positions across DST's client base.
The combined businesses will boast approximately $3.9 billion in revenue and 13,000 clients. The deal is expected to close by third quarter 2018.
"The combination will position us to capitalize on the demand for outsourcing in financial services and better enable our clients to address increasing competitive and regulatory pressures," said Bill stone, chairman and CEO of SS&C.
UBS introduces LGBT-rights ETF
UBS has launched its first U.S. ETF, and it comes with a socially conscious theme. The InsightShares LGBT Employment Equality ETF (PRID), will invest in companies that promote equality for lesbian, gay, bisexual and transgender employees, Bloomberg reports.
The fund will track an index based on a Human Rights Campaign Foundation gauge of corporate equality. All companies in the index must have a market cap of at least $1 billion. Zurich-based UBS is introducing the ETF through its InsightShares brand and will provide the index it tracks, but the fund will actually be run by ETF advisor Exchange Traded Concepts, Bloomberg says.
A portion of revenues will be donated annually to an LGBT-related charity.
The fund has an expense ratio of 0.65% and lists on the NYSE Arca. Trading began on Jan. 11.
Deutsche launches junk bond ETFs
Deutsche Bank is adding to its high-yield suite with three new ETFs focusing on junk bonds.
The Xtrackers Short Duration High Yield Corporate Bond ETF (SHYL), Xtrackers High Beta High Yield Bond ETF (HYP) and Xtrackers Low Beta High Yield Bond ETF (HYDW) are part of a risk-management strategy that allows investors to increase or decrease their exposure to junk bonds. Their expense ratios are 0.20%, 0.35% and 0.25%, respectively.
SHYL will track the performance, before fees and expenses, of the Solactive USD High Yield Corporates Total Market 0-5 Year Index. HYUP tracks the performance of the Solactive USD High Yield Corporates Total Market High Beta Index. HYDW tracks the Solactive USD High Yield Corporates Total Market Low Beta Index.
American Century appoints 2 for ETF initiative
American Century Investments appointed former BlackRock Portfolio Manager Rene Casis and ETF specialist Sean Walker to the firm's expanding ETF initiative.
Casis was most recently a partner at 55 Institutional, according to American Century. Before that he was a director for iShares at BlackRock, where he worked for 19 years, including his tenure at Barclays Global Investors.
Walker previously worked at BlackRock as vice president and market leader for active and passive product platforms for the West Coast and Florida.
PNC adds 2 to board of directors
LA Medler CEO Linda Medler and Martin Pfinsgraff, the former senior deputy comptroller at the Office of the Comptroller of the Currency, are the newest editions to the PNC Financial Services board of directors, the firm said.
Medler is the former chief information security officer and director of information technology security of Raytheon Missile Systems, a subsidiary of Raytheon Company. Pfinsgraff previously held leadership positions at Prudential Financial from 1989 to 2000, most recently serving as president of the firm's capital markets division.
Calvert names chief operating officer
Eaton Vance subsidiary Calvert Research and Management announced the appointment of Anne Richardson, formerly of Cambridge Associates, to chief operating officer, a newly created role at the firm.
Richardson is now responsible for Calvert's day-to-day operations, infrastructure and supporting activities, as well as developing strategies and services and client development activities, the firm said. Richardson will report to Calvert CEO John Streur.
"[Richardson] is an accomplished leader who will make significant contributions to Calvert's innovative research processes, intellectual capital and our strategic plan for sustained, long-term growth of Calvert's business," Streur said of Richardson's appointment.
IndexIQ announces leadership team changes
New York Life Investment Management announced that its head of ETF product development, Jon Zimmerman, will take on the newly created role of chief operating officer at IndexIQ, the firm's global ETF business.
Zimmerman and the IndexIQ's chief investment officer, Sal Bruno, who also joined the team, report to Kirk Lehneis, NYLIM's chief operating officer and head of mutual fund and ETF operations.
The changes come as part of a planned, post-acquisition leadership transition for IndexIQ, which was acquired by NYLIM in 2014, the firm said.
IndexIQ founders, Adam Patti and David Fogel, who served as CEO and president, respectively, will step down and serve as senior advisers, the firm said. Patti and Fogel will also report to Lehneis.