Direxion introduced two new leveraged ETFs this week, and Jefferson National and Envestnet have teamed on the first VA to offer their model portfolios.
In addition, Invesco is promoting its Intentional Income Finder, Henderson Global launched a high-yield opportunities fund, and Securian introduced managed volatility portfolios for some of its variable annuities.
Here are the latest developments of interest to advisors:
1) Invesco Announces ‘Age of Income’ Focus
Invesco US recently announced a comprehensive “age of income” focus designed to help financial advisors guide investors to the right income sources to meet their financial goals.
The age of income comprises two trends: the thousands of baby boomers retiring each day and the search for returns in a low-yield environment.
An integral component in identifying potential income sources for investors will be Invesco’s Intentional Income Finder, a proprietary digital program that allows users to answer questions that target specific income needs. Based on the responses, the program will generate a list of asset classes to consider. The program also can provide specific investment options using Invesco’s wide range of investment products, spanning multiple asset classes through mutual funds, ETFs and unit trusts. The tool is available at invesco.com/income and as part of the most recent upgrade of the Invesco US iPad app.
2) Direxion Launches Two Leveraged ETFs
BRZS seeks daily investment results, before fees and expenses, of 300% of the inverse performance of the MSCI Brazil 25/50 Index. The index measures the equity market performance of mid- and large-cap Brazilian companies. Similarly, KORZ seeks daily investment results, before fees and expenses, of 300% of the inverse performance of the MSCI Korea 25/50 Index. The index measures the equity market performance of mid- and large-cap South Korean companies.
3) First VA to Offer Envestnet|PMC Models
Jefferson National has teamed with Envestnet to add 14 new model portfolios. The new Envestnet|PMC models are available exclusively to advisors using Jefferson National’s Monument Advisor variable annuity, which has a flat fee and more than 390 underlying funds. This is the first time that Envestnet|PMC’s models will be made available in a tax-deferred VA.
The PMC portfolio series is professionally managed to provide a disciplined and diversified approach to investing for the long term, with seven portfolios targeting distinct levels of risk tolerance, from capital preservation through aggressive. A second set of PMC paradigm models adds a liquid alternatives overlay allocation that provides an additional component of diversification that seeks to mitigate risk and volatility in extreme market conditions and tap into new sources for returns.
Henderson Global Investors has launched the Henderson High Yield Opportunities Fund (HYOAX, HYOCX, HYOIX), a mutual fund that seeks to obtain total return and current income by investing in high-yield bonds and select investment-grade fixed-income securities. While it primarily invests in high-yield corporate bonds, up to 20% of the portfolio’s assets may be allocated to fixed-income securities rated investment grade. Those securities include U.S. and non-U.S. government securities, collateralized bond obligations and corporate bonds, with as much as 25% of the fund’s net assets invested in securities from foreign issuers.
The fund will be managed by the firm’s six-member U.S. credit team, headed by Kevin Loome. The team joined Henderson in February from Delaware Investments; this is the first fund to be developed for them. The team utilizes a fundamental credit research process and leverages a bottom-up security selection approach that emphasizes cash flow projections, total return potential and liquidity analysis to create a diversified and focused portfolio of between 50 and 100 holdings.
5) Securian Introduces Managed Volatility Portfolios for Variable Annuities
Securian has introduced managed volatility portfolios (MVPs) for some of its MultiOption variable annuities. By using a range of volatility management strategies that actively respond to market conditions, the new MVPs, available with some MultiOption variable annuities, seek to provide more consistent returns over time while reducing volatility risk. Securian’s variable annuities are issued by Minnesota Life Insurance Co., a subsidiary of Securian Financial Group.
MVPs seek to provide more consistent returns and minimize the impact of severe market declines by using hedging strategies to manage volatility. This may help clients stay invested and remain better positioned to recover from downturns. The new options are: AllianceBernstein VPS Dynamic Asset Allocation; Goldman Sachs VIT Global Markets Navigator; PIMCO VIT Global Diversified Allocation; and SFT Advantus Managed Volatility Fund.