New products and changes introduced over the last week include a short-term emerging markets bond ETF from ProShares; an S&P 500-based ETF in China; and an annuity from Allianz Life with a 7-year decreasing surrender charge.
In addition, W.E, Donoghue launched a power dividend index fund; American Century offered a retirement plan assessment tool; and Franklin Templeton and K2 Advisors announced a multi-strategy fund.
Here are the latest developments of interest to advisors:
1) ProShares Launches Short-Term Emerging Market Bond ETF
Proshares announced Thursday the launch of the Short Term USD Emerging Markets Bond ETF (EMSH), which is designed to offer yield potential with reduced interest rate sensitivity.
EMSH tracks the DBIQ Short Duration Emerging Market Bond Index, which is composed of a diversified portfolio of U.S. dollar-denominated emerging markets bonds with a weighted average maturity of three years or less. The index currently includes bonds from 19 countries issued by sovereign governments, other government entities and agencies, as well as corporations that have significant government ownership. A country’s weight in the index is capped at 10%. Bonds must have a minimum $500 million outstanding issuance to be eligible.
2) S&P 500-Based ETF Launched in China
Through a licensing agreement with S&P Dow Jones Indices, Bosera Asset Management has launched an S&P 500-based ETF in China, a move that allows the Chinese greater access to the U.S. market.
Total assets under management of ETFs listed in mainland China (Shanghai and Shenzhen) topped 150 billion yuan (about USD $25 billion) in Q3 2013 with close to 80 ETFs available in the market. The new ETF is the first to track the S&P 500.
3) Allianz Life Announces Annuity With 7-Year Decreasing Surrender Charge
Allianz Life has announced the launch of the Allianz Signature 7 annuity, available on the Allianz Preferred platform. The annuity is designed for retirement accumulation with a seven-year decreasing surrender charge period and is currently available in 41 states.
Prior to retirement, the annuity allows customers to accumulate retirement savings through indexed interest based on changes in several external market indexes of their choice. When they are ready for retirement, customers can access income with annuity income options including payments guaranteed for the life of the customer. Or, the full contract value is available to customers as a lump sum without surrender charges after seven contract years.