Hexis Capital Management Launches the Hexis Active Nicotine Engagement ETF on the New York Stock Exchange

Rhea-AI Summary

Hexis Capital Management (NYSE: NICO) launched the Hexis Active Nicotine Engagement ETF, listed May 6, 2026 and announced May 8, 2026. The actively managed fund charges a 0.70% management fee, is sub-advised by Penserra Capital Management and distributed by Quasar Distributors, LLC.

The Fund uses the proprietary Hexis Nicotine Transition Score (HNTS) — 27 indicators and 13 sub-indicators, ~20% AI-supported — and an engagement program overseen by an independent Harm Reduction Stewardship Council chaired by Dr Derek Yach. Dividends from net income paid quarterly; net realized gains distributed at least annually.

News Market Reaction – NICO

-0.42%

-0.42% Session close to close

In the May 8 session, NICO declined 0.42%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

First actively managed ETF combining investment in the global tobacco and nicotine sector with a structured engagement program designed to accelerate the industry's transition toward reduced-risk products.

NEW YORK and LONDON, May 8, 2026 /PRNewswire/ -- Hexis Capital Management today announced the launch of the Hexis Active Nicotine Engagement ETF (NYSE: NICO), an actively managed exchange-traded fund providing investors with exposure to the global tobacco and nicotine sector while actively engaging with portfolio companies to accelerate their transition toward reduced-risk products (RRPs).

NICO is a series of Series Portfolio Trust and was listed on the New York Stock Exchange on May 6, 2026, with a management fee of 0.70%. The Fund has a management fee of 0.7%, is sub-advised by Penserra Capital Management and distributed by Quasar Distributors, LLC.

"For too long, many investors who care about public health have felt forced to exclude the nicotine sector entirely, leaving the pace of industry transformation in fewer hands. That is starting to change. The industry is in the middle of one of the most significant transitions in its history, with reduced-risk categories — particularly tobacco-heating products such as Philip Morris International's IQOS and nicotine pouches such as PMI's Zyn brand — now driving a meaningful share of sector growth and valuation. NICO was created to give investors a way to participate in that transition while actively engaging with companies to accelerate it. We believe that engagement, backed by deep sector expertise and a rigorous transition framework, can support both improved investor outcomes and meaningful progress on harm reduction," said Pieter Vorster, Founder and Chief Executive Officer of Hexis Capital Management.

A Differentiated Approach: The Hexis Nicotine Transition Score (HNTS)

At the heart of the Fund is the proprietary Hexis Nicotine Transition Score (HNTS) — a framework built on 27 indicators and 13 sub-indicators that evaluates how effectively each company is transitioning from combustible tobacco to reduced-risk categories, including tobacco-heating systems, nicotine pouches, and vaping products. Approximately 20% of the score incorporates AI-supported indicators, including patent filings, hiring trends, market sentiment, and emerging market exposure.

The HNTS methodology has been independently reviewed by ACA Ethos and is embedded directly into the Fund's portfolio construction process and its structured engagement program with portfolio companies.

Engagement Led by Industry and Public Health Veterans

The Fund's engagement program has been designed by Tim Youmans, a globally recognized authority in corporate governance and investor stewardship. Oversight is provided by an independent Harm Reduction Stewardship Council (HRSC), chaired by Dr Derek Yach, who spearheaded development of the World Health Organization's Framework Convention on Tobacco Control.

"Real change in this industry will come from sustained, evidence-based engagement with the companies that hold the most influence over the pace of transition," said Jonathan Fell, Head of Research and Engagement at Hexis Capital Management. "Our role is to bring rigor and accountability to that conversation, on behalf of investors and in service of better public health outcomes."

Distribution Policy

The Fund intends to pay dividends from net investment income quarterly and to distribute all net realized capital gains at least annually. The Fund will declare and pay income and capital gain distributions in cash.

About Hexis Capital Management

Hexis Capital Management is an SEC-registered investment adviser specializing in the global tobacco and nicotine sector. The firm's leadership combines more than 60 years of tobacco and consumer sector research with over 50 years of ETF strategy, distribution, and institutional asset management experience across firms including BlackRock, JPMorgan Asset Management, BNP Paribas, Credit Suisse, UBS, Morgan Stanley, and Deutsche Bank. In the United Kingdom, Hexis Capital Management Limited is an Appointed Representative of Robert Quinn Advisory LLP, which is authorized and regulated by the Financial Conduct Authority. As an Appointed Representative, Hexis Capital Management Limited is responsible for providing investment advisory services to the Fund.

For more information, visit hexis.capital.

Media Contact
IR@hexis.capital
1-800-617-0004

Important Information

Investors should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. A prospectus containing this and other information about the Fund may be obtained by calling 1-800-617-0004 or visiting https://www.sec.gov/ix?doc=/Archives/edgar/data/1650149/000089418926000623/ck0001650149-20260116.htm#iba9ad9f67c394bdb8e14cbb56e30f773_73. The prospectus should be read carefully before investing.

Investing involves risk. Principal loss is possible. The Fund's investments will be concentrated in the securities of issuers in the tobacco and nicotine-related group of industries, which is subject to significant risks and uncertainties. The Fund is non-diversified, meaning it may invest a greater percentage of its assets in the securities of a limited number of issuers. The Fund is actively managed and may not meet its investment objective. As a recently organized fund, the Fund has limited operating history. Foreign securities, derivatives, and small- and mid-cap companies carry additional risks. Shares of any ETF are bought and sold at market price (not NAV), are not individually redeemed from the ETF, and brokerage commissions will reduce returns.

The Hexis Active Nicotine Engagement ETF is distributed by Quasar Distributors, LLC.

Logo: https://mma.prnewswire.com/media/2975234/Hexis_Capital_Management_Logo.jpg

View original content to download multimedia:https://www.prnewswire.com/news-releases/hexis-capital-management-launches-the-hexis-active-nicotine-engagement-etf-on-the-new-york-stock-exchange-302766756.html

SOURCE Hexis Capital Management Limited

FAQ

What is the Hexis Active Nicotine Engagement ETF (NICO) and when did it list?

NICO is an actively managed ETF focused on the global nicotine and tobacco sector, listed on May 6, 2026. According to the company, it combines sector exposure with a structured engagement program to accelerate company transitions to reduced-risk products.

What fee does ETF NICO charge and who manages it?

The fund charges a 0.70% management fee and is sub-advised by Penserra Capital Management. According to the company, Quasar Distributors will handle distribution and Hexis serves as the fund sponsor and investment manager.

What is the Hexis Nicotine Transition Score (HNTS) used by NICO?

HNTS is a proprietary framework with 27 indicators and 13 sub-indicators evaluating company transitions to reduced-risk products. According to the company, about 20% of the score uses AI-supported indicators like patent filings and hiring trends.

How does NICO engage with portfolio companies on harm reduction?

NICO runs a structured engagement program overseen by a Harm Reduction Stewardship Council chaired by Dr Derek Yach. According to the company, engagements are led by industry and public-health veterans to drive evidence-based corporate change.

How will distributions from NICO be paid to shareholders?

The Fund intends to pay dividends from net investment income quarterly and distribute net realized capital gains at least annually. According to the company, both income and capital gain distributions will be declared and paid in cash.