September 7, 2012

Top Portfolio Products: Global X Launches Junior Miners ETF

Scout introduces low-duration bond fund

Portfolio Products logoNew products introduced over the last week include a new junior miners ETF from Global X Funds and a low-duration bond fund from Scout Investments.

In addition, Envestnet has partnered with Fund Evaluation Group.

Here are the latest developments of interest to advisors:

1) Global X Funds Launches Junior Miners ETF

Global X Funds announced Thursday that it has launched the Global X Junior Miners ETF (JUNR), the first ETF to provide access to junior mining companies globally. It adds diversification across resources by including companies involved in the production of coal, copper, gold, iron, nickel, silver, titanium and other materials.

While junior miners typically have a higher risk/reward profile than large-cap miners, JUNR helps reduce company-specific risk by diversifying investments across 96 junior mining companies. Investors may also benefit from increased merger and acquisition activity in the sector, as large mining companies look to acquisitions and partnerships as additional sources of supply and geographic expansion.

2) Scout Investments Launches Low-Duration Bond Fund

Scout Investments announced recently that it has expanded its mutual fund lineup with the launch of the Scout Low Duration Bond Fund (SCLDX). With an emphasis on capital preservation, the fund is designed to yield more than money-market funds and to be less volatile than longer-term bond funds.

Mark Egan is SCLDX’s lead portfolio manager and managing director at Reams Asset Management, a division of Scout Investments. SCLDX’s management seeks to maximize risk-adjusted total return, minimize volatility and preserve capital. It will be well diversified and consist of high-quality short-term securities with an average fund duration of generally one to three years. It also has the flexibility to invest in high-yield securities when it is attractive to do so.

3) Envestnet to Focus on Fiduciary With Fund Evaluation Group Announcement

Envestnet announced Wednesday that it has partnered with Fund Evaluation Group, a hedge fund research and due diligence provider. The partnership is meant to complement the research on separate account managers, mutual funds, ETFs and liquid alternative investments already available on the Envestnet Prima platform.

“It’s really a response to client demand,” said James Patrick, managing director of advisor managed programs with Envestnet, when asked about the genesis of the partnership. “They are known in the industry for their heft, reputation and pedigree. We also have a number of clients that already utilize them, so that certainly helps when choosing.”

Read the full story on AdvisorOne.

Read the Aug. 30 Portfolio Products Roundup at AdvisorOne.

Reprints Discuss this story
This is where the comments go.