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October 01, 2012 at 09:20 PM
New products introduced over the last week include four new portfolios on LPL Financial’s model wealth portfolios platform; a new equity income fund from MFS; and a new global infrastructure fund from Northern Trust.
In addition, New York Life introduced a variable annuity with an optional lifetime income rider and Mass Mutual introduced a flexible premium deferred income annuity. Also, Schwab announced cuts in ETF fees, and OppenheimerFunds announced that it has increased the number of its funds offering I shares.
Here are the latest developments of interest to advisors:
1) LPL Financial Launches New Offerings on Model Wealth Portfolios Platform
LPL Financial LLC, a wholly owned subsidiary of LPL Financial Holdings Inc. (LPLA), announced Tuesday that it has expanded its model wealth portfolios platform through the addition of two new portfolios from LPL Financial Research, as well as two managed alternative investment portfolios from Fortigent.
The new Quad-Core Income Portfolio seeks to replicate or beat the performance of core bonds while generating more income and the Quad-Core Balanced Portfolio seeks the return of a traditional 60/40 stock-bond portfolio with little or no sensitivity to rising interest rates. The Alternative Strategies and Alternative Strategies—Enhanced portfolios are geared to capture the performance of traditional equity/fixed income portfolios, but with lower volatility, reduced potential for loss of capital and lower correlation with other asset classes.
2) MFS Launches Equity Income Fund
MFS Investment Management announced Thursday that it has launched MFS Equity Income Fund (EQNAX). The fund invests in equity securities and seeks to generate total return through current income and capital appreciation, and is managed by Jonathan Sage, an investment officer and portfolio manager.
EQNAX invests primarily in income-producing equity securities. MFS invests the majority of the fund’s assets in dividend-paying common stocks, but may invest in other types of income-producing securities, including convertible securities, preferred stocks and REITs, and may also invest in nonincome-producing securities. The fund is available in multiple share classes (A, B, C, I, R1-R5) and can be purchased through financial advisors and other financial intermediaries at banks, broker/dealers and insurance companies as well as through certain retirement platforms.
3) Northern Trust Launches Global Infrastructure Fund
Northern Trust announced Tuesday the launch of the Northern Multi-Manager Global Listed Infrastructure Fund (NMFIX), which seeks total return through both income and capital appreciation. Under its investment strategy, at least 80% of assets will be invested in securities of infrastructure companies listed on a domestic or foreign exchange. Infrastructure firms include energy, transportation, communication and utility companies.
This is a global fund, and normally the fund will invest at least 40% in infrastructure companies tied to foreign countries, including emerging markets and frontier markets.
NMFIX’s total net operating expense ratio is 1.00%, and has a redemption fee of 2% on assets sold or exchanged within 30 days of purchase. The minimum investment is $2,500. It takes a multimanager approach, with assets allocated to multiple outside subadvisors using distinctive investment styles.
The Northern Trust Company of Connecticut will conduct manager research, selection, optimization and oversight. Investment subadvisors are Brookfield Investment Management and Macquarie Capital Investment Management.
