New products introduced over the last week include four new ETFs from iShares; a new platform from Natixis; a new high-yield bond ETF from Market Vectors; a new fund from RiverPark; and a new fund from Henderson Global.
In addition, Intech launched a new strategy; Loomis Sayles introduced a new fund; a new annuity became available from Security Benefit; and Guggenheim announced that it has renamed Rydex Specialized Products.
Here are the latest developments of interest to advisors:
1) iShares Launches New Income-Focused ETFs
BlackRock, Inc. announced that its iShares ETFs business launched two new funds April 3 and two more on April 5. Launching April 3 were iShares Emerging Markets High Yield Bond Fund (EMHY) and iShares Global ex USD High Yield Corporate Bond Fund (HYXU). Launching April 5 were iShares Global High Yield Corporate Bond Fund (GHYG) and iShares Morningstar Multi-Asset Income Index Fund (IYLD).
EMHY provides access to high-yield bonds denominated in USD and includes a 65% allocation to sovereign bonds and 35% to corporate issues. It is designed to track the Morningstar Emerging Markets High Yield Bond Index.
HYXU offers access to developed international non-U.S.-denominated high-yield bonds, which are denominated in euros, pounds sterling and Canadian dollars. Its highest country allocations are France (15%), the U.K. (15%), Germany (14%), and the Netherlands (12%). It is designed to track the Markit iBoxx Global Developed Markets ex-US High Yield Index.
GHYG provides complete global (U.S. and developed international) high yield in a “one ticket” trade via developed international corporate bonds denominated in the U.S. dollar, euros, the pound sterling, and the Canadian dollar. Based on the country of the issuer, the fund is allocated 69% to the U.S., 16% to Europe, 4% to the U.K., and 3% to Canada. It is designed to track the Markit iBoxx Global Developed Markets High Yield Index.
IYLD is an ETF of iShares ETFs that delivers income with a diversified, managed approach. The fund is allocated 60% to fixed income, 20% to equity and 20% to alternative income sources. It is designed to track the Morningstar Multi-Asset High Income Index.
2) Natixis Global Asset Management Unveils New Platform
Natixis Global Asset Management officially unveiled its new Durable Portfolio Construction platform to help individual investors, financial advisors and institutional investors worldwide address growing concerns about risk and market volatility in global markets. The platform focuses on portfolio construction and analytics to help investors manage volatility and enhance the diversification of their portfolios.
The platform recognizes investors’ wish to combine a desire for returns with asset protection, which rests on the ability to generate sufficient returns at appropriate levels of risk in all market conditions. The platform makes risk the primary consideration for asset allocation and is intended to help investors minimize the impact of extreme market movements, make smarter use of traditional asset classes, add exposure to alternative investments, and employing noncorrelated investment techniques such as hedging and long/short strategies.
3) Market Vectors launches International High Yield Bond ETF (IHY)
Market Vectors ETF Trust announced Tuesday the launch of its International High Yield Bond ETF (IHY). It seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the BofA Merrill Lynch Global Ex-US Issuers High Yield Constrained Index (HXUS), which is comprised of below-investment-grade debt issued by corporations located outside the U.S. and which may include emerging market countries. The bonds are denominated in major global currencies, including euros, U.S. dollars, Canadian dollars or British pounds sterling, issued in the major domestic or Eurobond markets.
IHY has a gross expense ratio of 0.53% and a net expense ratio of 0.40%, which is capped at least until Sept. 1, 2013. Cap excludes certain expenses, such as interest.
4) RiverPark Introduces the RiverPark Long/Short Opportunity Fund
RiverPark Advisors LLC introduced on April 2 the RiverPark Long/Short Opportunity Fund (RLSFX), an open-end mutual fund that seeks to provide long-term capital appreciation while protecting against downside risk. It is a conversion of an existing hedge fund launched by RiverPark in October 2009 and will be managed by Mitch Rubin, RiverPark’s CIO, who has been portfolio manager of the hedge fund since its inception.
RLSFX will seek to identify dominant secular, economic and demographic changes in society, and to invest in those industries and companies most affected, positively or negatively, by these changes.
5) Henderson Global Investors Launches All Asset Fund
Henderson Global Investors (North America) Inc. recently announced the launch of the Henderson All Asset Fund (HGAAX, HGACX, HGAIX), which seeks long-term growth of capital with lower volatility through flexible asset allocation across a wide range of asset classes around the world.
The fund is structured as a multi-asset portfolio which has the ability to invest in a broad range of traditional and alternative asset classes, including equities, bonds, property, private equity, commodities, currency and cash. It is co-managed by Bill McQuaker and Chris Paine, a team with 43 years of combined investment management experience.
INTECH Investment Management LLC, an independently managed subsidiary of Janus Capital Group Inc., announced Tuesday the launch of the INTECH Global High Dividend Core strategy designed for institutional investors seeking capital appreciation and higher-than-average dividend yields. The new strategy aims to approximate the dividend yield of the MSCI World High Dividend Yield Index and to provide potential for excess returns.
The portfolio includes stocks with above-average dividend yields that are both sustainable and persistent, and excludes stocks whose future dividends may be in jeopardy. The strategy, benchmarked to the MSCI World High Dividend Yield Index, is designed to generate a yield that approximates the index, with an excess return target of approximately 2.50% to 3.00% above the benchmark, annualized gross of fees.
7) Loomis Sayles Launches Capital Income Fund
Loomis, Sayles & Company recently launched the Loomis Sayles Capital Income Fund (LSCYX), an equity income strategy that primarily seeks to invest in attractively priced dividend-paying stocks with a modest allocation to other securities, including preferred stocks, high yield and convertible bonds. The strategy will be co-managed by large-cap value veterans Warren Koontz and Art Barry alongside multisector fixed-income specialists Dan Fuss and Kathleen Gaffney.
While dividend-paying stocks will be the base of the portfolio, the managers will also continuously assess the relative attractiveness of preferred stocks and fixed income securities issued by a company, government entity, agency, or other party. The goal of LSCYX is to deliver total return in excess of its primary benchmark, the S&P500 Index, along with an income stream.
8) Security Benefit Launches Innovative Total Value Annuity
Security Benefit Corporation recently announced the launch of its Total Value Annuity, a fixed index annuity (FIA) offered exclusively through four independent marketing organizations (IMOs), Advisors Excel, Creative Marketing, Gradient Financial and Impact Partnership. It was designed to protect retirement savings and provide interest on those savings. Built with three different interest crediting options, it offers a fixed interest rate option or performance-based interest results from the S&P 500 Index and/or the 5 Year Annuity Linked TVI Index (ALTVI). Annuity owners can choose to allocate all of their money to one interest crediting option or any combination of the three.
The annuity can be structured to provide guaranteed income for life through the optional Guaranteed Lifetime Withdrawal Benefit Rider, or to provide for others upon the owner’s death through the Guaranteed Minimum Death Benefit Rider.
9) Guggenheim Investments Renames Rydex Specialized Products
Guggenheim Investments, the investment management division of Guggenheim Partners, LLC, announced that effective March 30, Rydex Specialized Products LLC, the sponsor of the firm's CurrencyShares product lineup, was officially renamed Guggenheim Specialized Products, LLC. The rebranding comes as a part of Rydex|SGI's integration into Guggenheim Partners, LLC to form Guggenheim Investments.
The names and tickers of the eight CurrencyShares Trusts are: CurrencyShares Australian Dollar Trust (FXA); CurrencyShares British Pound Sterling Trust (FXB); CurrencyShares Canadian Dollar Trust (FXC); CurrencyShares Chinese Renminbi Trust (FXCH); CurrencyShares Euro Trust (FXE); CurrencyShares Japanese Yen Trust (FXY); CurrencyShares Swedish Krona Trust (FXS); and CurrencyShares Swiss Franc Trust (FXF).
Read the March 30 Portfolio Products Roundup at AdvisorOne.com