Ritholtz Wealth Management has created an environmental, social and governance version of its classic asset allocation models, known as the Portland Portfolio.
The portfolio's name was jokingly coined by Josh Brown, CEO at Ritholtz, and it stuck, Joey Fishman, Ritholtz’s “in-house ESG expert,” said with a laugh. Fishman, who is based in Portland, Oregon, is the director of ESG investing for the Portland Portfolio.
“Portland is I think emblematic of a lot of the Pacific Northwest – where you have a lot of very talented, very well-educated people that care about this stuff,” Fishman told ThinkAdvisor. “They definitely care about the environment. It’s a very outdoor-activity part of the country. It’s probably more of a pressing issue out here versus maybe more middle America.”
The demand was there, but the firm wanted to make sure these portfolios are actually going to perform. The challenge, Fishman said, was to create a tax efficient, globally diversified portfolio not weighed down by implementation costs nor subject to an unrealistic interpretation of what it means to be sustainable.
“Not all ESG indexes are created equal and there will be gray areas,” Fishman said. “Some screens are too exclusionary while others are nothing more than a weighting scheme with an expensive wrapper.”
Rather than create a brand new ESG index, the Ritholtz team decided to use ESG as an “overlay” in addition to traditional financial analysis. The overlay screens for companies with good records on ESG issues.
“This way our clients will still have a good portfolio based on well established investment principles,” Fishman said.
The Portland Portfolio will be offered across all of the firm’s client segments -- institutional, individual, family office and corporate retirement plans.
TD Ameritrade Launches Its First Mobile App for Long-Term Investors
TD Ameritrade Investment Management LLC announced the soft launch of its first mobile app for long-term investors with managed accounts.
The TD Ameritrade Portfolios app, which is now in a pilot preceding its official launch in January, supports client accounts utilizing Essential Portfolios, an automated, low-cost advisory service for digital-first investors, and Selective Portfolios, an existing managed account offering.
The first version of the app is currently available for Apple iPhone devices, with the launch of the Android app and additional upgrades and features planned for the first half of 2017. The app is available free of charge.
AIG Introduces New Fixed Annuity Product
American International Group, Inc. (AIG) launched a new fixed annuity product today, Assured Edge Income Builder, with a guaranteed lifetime withdrawal benefit. Assured Edge Income Builder is intended to offer investors an income advantage by offering investors lifetime income, flexibility and security.
Assured Edge Income Builder is available in all states except New York.
Prudential Investments launched Prudential Day One Mutual Funds, a series of 12 target date funds that will be available through group retirement plans and financial intermediaries. The new suite of TDFs is available in five-year increments, ranging from 2010 to 2060, in addition to an income fund.
Rational Funds Converts First Hedge Fund to Mutual Fund
Rational Funds converted its first hedge fund to a mutual fund product. The Rational Dynamic Momentum Fund (RDMIX), which was converted from Chesapeake Capital Corporation’s flagship hedge fund, offers investors a managed futures strategy with a track record dating back to 1994.
RDMIX’s strategy is based on capital appreciation uncorrelated to global equity markets by investing in long and short positions on futures contracts, forward contracts and options on futures contracts.
Global Atlantic Launches Single-Premium Income Annuity
Global Atlantic launched a new, single-premium income annuity called ForeCertain. The product will be issued by Forethought Life Insurance Company and features nine different income options and four optional benefits to help clients customize income to meet their needs.
WBI Investments Debuts High-Yield Dividend Smart Beta ETF
WBI Investments, which manages about $2 billion in SMAs, mutual funds and ETFs, launched their first smart-beta ETF, targeting high-yield dividend stocks.
WBI Power Factor™ High Dividend ETF (NYSE Arca: WBIY) seeks to provide investment results that correspond to the price and yield – before fees and expenses – of the Solactive Power Factor™ High Dividend Index, which the fund will be tracking.
Orion Advisor Services Launches Fee-Benchmarking Tool
Orion Advisor Services launched a fee analyzer that creates custom fee-benchmarks for accounts. The new fee-benchmarking tool will allow advisors to filter the advisory fee benchmark comparisons by: type of firm (asset manager, financial planner, etc.), services provided (discretionary, nondiscretionary, wrap accounts, etc.), certain account types (qualified, nonqualified, IRA, non-IRA) and account size range.
--- Read last week’s roundup here: Natixis Plans First Target-Date Suite Focused on ESG: Top Portfolio Products