Just a week after Vanguard and PIMCO rolled out emerging bond funds, Goldman Sachs is sharing a global bond fund with investors. In addition, FPA Funds announced the conversion of its funds to no-loads.
Meanwhile, Lincoln Financial’s has a new Treasury-indexed universal life policy; there’s a new lifetime income annuity from ING U.S., as well as a new variable annuity from Forethought Financial Group.
Here are the latest developments of interest to advisors:
1) Goldman Sachs Launches World Bond Fund
Goldman Sachs Asset Management (GS) announced Wednesday the launch of the Goldman Sachs World Bond Fund (A shares, GWRAX), which invests in fixed income securities and currencies across the developed and emerging markets. It seeks to capture debt sustainability dynamics for government bond market returns, while attempting to generate higher yield and lower volatility compared to traditional funds.
GWRAX is benchmarked to the Barclays Global Sovereign Fiscal Strength Index, which incorporates elements of the Barclays GDP and Fiscal Strength indices, and combines them with a GSAM-developed methodology that favors countries with strong fundamentals over those under some form of fiscal stress.
GWRAX allocates primarily to global sovereign bonds and sovereign-related debt. Its currency exposure is unhedged. Its A and C shares have $1,000 minimum initial investments; it also offers institutional, R and IR shares.
2) FPA Funds Announces Conversion to No-Load Fund Family
FPA has announced that effective April 1, all of the FPA funds will be available as no-load funds. This means that each FPA fund will be available for direct purchase by the public without any front-end sales charges.
It is important to note that any trade or trade adjustment transmitted to the funds or UMB Fund Services after March 28 will be processed without a sales charge regardless of the actual trade date.
This change will only affect FPA Capital Fund (FPPTX), FPA New Income (FPNIX), FPA Paramount Fund (FPRAX) and FPA Perennial Fund (FPPFX), since these funds are currently structured as front-load mutual funds.
The FPA Capital Fund will remain closed to new investors. In addition, shareholders of FPA Crescent Fund (FPACX) and FPA International Value Fund (FPIVX) will now be able to exchange between the other FPA funds without the hurdle of having to pay the front-end sales charge.