New products introduced over the last week include a new fund from DoubleLine that will use a Shiller index as its benchmark; four new target date funds from Franklin Templeton; and First Trust announced a new international ETF.
In addition, Allianz Life launched two new enhanced index allocations for its preferred fixed indexed annuities and SunGard introduced its new MyRetirement income calculator for plan participants.
Here are the latest developments of interest to advisors:
1) DoubleLine Plans Fund to Beat Shiller Benchmark Index Using Derivatives
Jeff Gundlach’s DoubleLine Capital LP has filed to launch a mutual fund seeking to outperform Robert Shiller’s benchmark ShillerBarclays CAPE US Sector TR USD Index, which invests equally in the four most undervalued U.S. stock sectors based on their CAPE ratio and their price momentum over the past 12 months.
The DoubleLineShiller Enhanced CAPE fund will seek a higher return than its index, according to the SEC filing, and will use derivatives — swaps or futures contracts — possibly together with direct and bond investments, to try to generate long-term total returns that beat the index. Gundlach and Jeffrey Sherman will run the new fund. The use of derivatives will allow the fund to invest in a range of fixed-income securities with the majority of the fund’s assets to boost returns.
2) Franklin LifeSmart Expands Retirement Target Fund Lineup for U.S. Investors
Franklin Templeton Investments recently announced the introduction of four new funds within the company’s retirement target fund lineup: the Franklin LifeSmart 2020, 2030, 2040 and 2050 Retirement Target funds. Each fund’s investment goal is to seek the highest level of long-term total return consistent with its specific asset allocation,each is designed for investors planning to retire around the fund’s target year. The funds invest their assets primarily in other Franklin Templeton mutual funds.
On the whole, each fund’s asset allocation shifts over time from being less conservative (by investing primarily in equity funds when the target date is the furthest away) to becoming increasingly conservative (by shifting its allocation emphasis from equity to fixed income investments) as the stated target date draws near. Over time, each fund’s allocation will change, but portfolio managers Tony Coffey and Tom Nelson also have the flexibility to make adjustments along the way.
3) First Trust Launches International Multi-Asset Diversified Income Index Fund
First Trust Advisors L.P. announced Thursday the launch of a new ETF, the International Multi-Asset Diversified Income Index Fund (YDIV), which seeks investment results that correspond generally to the price and yield (before fees and expenses) of the NASDAQ International Multi-Asset Diversified Income Index.