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Ex-Merrill ETF Maven Unveils New Range of Model Portfolios

After leaving Merrill Lynch a year ago to assume a post as chief investment officer of Global X, Jon Maier is back doing what he does best: building model portfolios.

May 30, 2018

Former Merrill Lynch ETF maven Jon Maier has launched a new range of model portfolios.

Maier left Merrill in May last year to take up the role of CIO at ETF provider Global X, which has now partnered with financial technology firm, GeoWealth, to launch the Global X ETF Model Portfolios by Jon Maier.

The models, which went live earlier this month, consist of two standalone portfolios, Thematic Disruptors and Equity Income, as well as a risk-based range called Core Series.

The models will be comprised of six to 15 ETFs from Global X as well as third-parties including iShares, State Street Global Advisors and JP Morgan.

All portfolios will be managed by Maier who previously oversaw around $40 billion in assets in the Merrill Lynch ETF models, which became know as the ‘Maier models’ during his time there.

Global X will not charge a fee on the portfolios beyond the management fees on the ETFs included in the portfolios, according to a spokesman for the firm.

Global X’s individual ETF expense ratios average 63 basis points, ranging from 19 basis points (Global X Scientific Beta US ETF) to 284 basis points (Global X SuperDividend® Alternatives ETF).

The Thematic Disruptors model portfolio will include a mix of ETFs that aim to capture sector, industry and geographic themes. Picking predominantly, but not exclusively, from Global X’s own funds, ETFs will be selected and weighted to tilt towards higher growth opportunities while anchored by traditional sector ETFs.

Global X manages $10.1 billion in assets as of May 25, 2018. Since the firm’s launch in 2008, Global X has become known for developing ETFs that gain exposure to companies in disruptive industries across, technology, natural resources, people and demographics, and values based businesses. The suite, called Thematic Access, accounts for 19 of Global X’s 54 ETFs including the $2.5 billion Global X Robotics & Artificial Intelligence ETF (BOTZ) and the $967 million Global X Lithium & Battery Tech ETF (LIT).

The Equity Income model portfolio will have a high-income objective utilizing income-generating ETFs and industry sector ETFs to mitigate concentration risk associated with certain high-yield strategies. Global X’s income ETF family includes the SuperDividend ETFs and a series of alternative MLP, energy and preferred ETFs. The portfolio will include Global X’s own ETFs alongside other providers’ funds.

The Core Series will be a set of the five risk-based models that will range from conservative to aggressive, according to Jack Hannah, managing director at GeoWealth. The models will include mix of thematic, equity and fixed income ETFs. The portfolio will be comprised of Global X’s own ETFs alongside other providers’ funds.

Advisors who want access to Maier’s models can purchase them through GeoWealth’s platform for one asset-based fee, Hannah told Citywire.

In addition to GeoWealth’s proprietary model portfolios and Global X’s, the platform also offers JPMorgan Global Tactical models and State Street ETF model portfolios.

‘We’re extremely glad to be working with an institution like GeoWealth to help bring these ETF model portfolios to life,’ Maier said. ‘Our aim is that these models could provide an efficient way to potentially benefit from thematic trends in addition to a multi-factor approach to core investing.’

 

Link to post on Citywire USA.

For inquiries, please contact:

Katie Bomher

312.209.9157

Katie.bomher@geowealth.com

Ex-Merrill ETF Maven Unveils New Range of Model Portfolios Jon Maier

“We're extremely glad to be working with an institution like GeoWealth to help bring these ETF model portfolios to life”

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