New products and changes introduced over the last week include an equity unit trust from Incapital and Nuveen Asset Management and a closed-end fund from Goldman Sachs Asset Management.
In addition, Neuberger Berman announced the selection of one of its funds by Hartford HealthCare as defined contribution plan investment option, and AARP rolls out an online health-care costs calculator.
Here are the latest developments of interest to advisors:
1) Incapital and Nuveen Asset Management Introduce New Equity Unit Trust
Incapital LLC and Nuveen Asset Management announced that they have joined efforts to create and distribute a new unit trust portfolio expected to launch in early 2014.
The new offering, developed in collaboration with Bob Doll, chief equity strategist and senior portfolio manager at Nuveen, will provide investors access to strategies with a fixed basket of securities and a defined maturity.
“We expect the first series of unit trusts to be one of many innovative solutions to be offered by Incapital in partnership with Nuveen,” said Incapital CEO John Radtke, in a press release. “Over time, we will look to create and deliver a broad range of investment opportunities in multiple distribution channels. We are pleased to initiate our partnership with a unit trust designed for a market segment experiencing increased investor demand.”
“We are very excited to partner with Incapital to offer this new unit trust and highlight Bob Doll’s deep and respected expertise in equity investing,” said William T. Huffman, president of Nuveen Asset Management, in a statement. “Working together, we look forward to developing a series of unit trust offerings that draw from our multi-asset-class investment platform and that we believe will help secure the long-term goals of investors.”
2) Goldman Sachs Asset Management Launches Closed-End Fund
Goldman Sachs Asset Management has announced the launch of the Goldman Sachs MLP Income Opportunities (GMZ), its first closed-end fund.
GMZ aims to invest primarily in master limited partnerships (MLPs)—a tax-advantaged structure created for use by energy firms to support growing hydrocarbon extraction and increasing energy demand. Focused specifically on midstream infrastructure, these companies include pipeline operators, processors, and fractionation and storage facilities.
Managed by the firm’s energy and infrastructure team, GMZ seeks a high level of total return with an emphasis on current distributions to shareholders. It raised $826.3 million in its common share offering, excluding any exercise of the underwriters’ option to purchase additional shares.
If the underwriters exercise their overallotment option in full, GMZ will raise $950.1 million. Underwriters may exercise their overallotment option up to 45 days after the initial public offering. Morgan Stanley, Citigroup and BofA Merrill Lynch were lead underwriters in connection with the offering.
3) Neuberger Berman Fund Chosen as Investment Option in DC Plan
Neuberger Berman announced that Hartford, Connecticut-based Hartford HealthCare (HHC) has selected the Neuberger Berman Absolute Return Multi-Manager Fund (NABCX) as an investment option for employees of its defined contribution plans.
NABCX was introduced in May 2012 and seeks capital appreciation with an emphasis on absolute returns. It allocates its assets to multiple hedge fund advisors that employ distinct alternative investment strategies, and is managed by members of the Neuberger Berman hedge fund solutions team. Unlike traditional hedge funds, NABCX is available to retail investors and offers daily liquidity, lower investment minimums, full transparency of portfolio holdings and does not have a performance based management fee.
HHC employs approximately 18,000 people and administers a defined contribution system that includes 401(k), 403(b), and 457(b) plans, with total assets of approximately $650 million. NABCX was the sole hedge fund strategy option selected by HHC officials as part of a restructuring of its defined contribution plans. The option will become available to HHC defined contribution participants beginning January 1, 2014.
4) AARP Launches Free Online Health Care Costs Calculator
AARP has launched a free online health care costs calculator as an addition to its Ready for Retirement suite of planning tools. The release of the calculator was accompanied by the release of a survey indicating that only a little over a third (36%) of older Americans have taken any steps to save for out-of-pocket health care expenses, though multiple studies show that such costs often reach significantly more than $200,000 for a retired couple. The new tool, which requires no registration and collects no personal data on any user, is available at www.aarp.org/healthcostscalc.
The calculator estimates health costs in retirement by utilizing a database that includes $136 billion in costs from actual health care claims. Individuals can select from 82 medical conditions to estimate how much they may need to spend on out-of-pocket health care costs. The calculator also assumes that individuals will be eligible for and select Medicare Parts A, B and D.
After estimating costs with the calculator, users can create a customizable action plan to help save for health care in retirement and make impactful changes in their lives that include planning, saving, and making healthy changes. For example, if a person has “get to a healthier weight” as a goal, the tool will offer possible next steps for pursuing that goal.
Read the Nov. 25 Portfolio Products Roundup at ThinkAdvisor.