New products and changes introduced over the last week include a subadvisor for Market Vectors’ ChinaAMC A-share ETF; two funds from Thornburg Asset Management; four funds from American Independence; institutional shares of Amana Funds launched by Saturna Capital; and an updated online tax calculator from AICPA.
In addition, Nuance Investments announced its second mutual fund; Goldman Sachs Asset Management announced a fixed income macro strategies fund; Genworth launched a second universal life insurance product; and North Star accounced a hedge fund administration unit from NorthStar Financial Services Group.
Here are the latest developments of interest to advisors:
1) Market Vectors Announces Subadvisor for ChinaAMC A-share ETF
Market Vectors announced Wednesday that Van Eck Associates Corp. has entered into an agreement with China Asset Management (Hong Kong) Ltd. (ChinaAMC) through which ChinaAMC has begun serving as subadvisor for the Market Vectors ChinaAMC A-Share ETF (PEK). ChinaAMC is a wholly owned subsidiary of China Asset Management Co. Ltd., China’s largest management company in terms of mutual fund assets under management, and has received its Renminbi Qualified Foreign Institutional Investor (RQFII) quota, which allows PEK to have direct exposure to physical China A-shares.
PEK seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the CSI 300 Index, a modified free-float market capitalization-weighted index compiled and maintained by China Securities Index Co Ltd. The CSI 300 is a diversified index consisting of 300 A-share stocks listed on the Shenzen and/or Shanghai stock exchanges that represent equity securities of companies incorporated in mainland China; the shares are denominated in renminbi (RMB).
2) Thornburg Asset Management Launches Two Funds
Thornburg Investment Management (TIM) announced that it has launched the Thornburg Low Duration Income Fund (TLDAX, TLDIX) and the Thornburg Low Duration Municipal Fund (TLMAX, TLMIX). The primary investment goal of both funds is current income (exempt from federal income tax in the case of the muni fund), consistent with preservation of capital.
TLDAX will be managed by managing directors Jason Brady and Lon Erickson, who head up portfolio management for the firm’s taxable bond area. TLMAX will be managed by managing directors Josh Gonze and Christopher Ryon, who oversee the municipal bond investing group.
3) American Independence Announces Four Funds
American Independence Financial Services LLC announced the creation of four funds based on Toronto-based Cougar Global Investments Ltd.’s ETF-based macroeconomic assessment of risk (MAR) strategy, a macro-driven tactical ETF asset allocation methodology offering downside risk protection. American Independence will provide oversight, marketing, administration and execution. The funds will be marketed to financial intermediaries in the U.S.
The MAR Tactical Conservative Fund (TCMNX, TCMAX, TCMCX, TCMRX) seeks attractive returns while targeting at most a 5% probability of loss, and is targeted at clients seeking regular withdrawals for income purposes.
The MAR Tactical Moderate Growth Fund (MGZCX) seeks attractive returns while targeting at most a 10% probability of loss, and is for clients with occasional income needs and moderate risk appetite.
The MAR Tactical Growth Fund (MGMAX), which seeks attractive returns while targeting at most a 15% probability of loss, is for clients with a long-term investment horizon.
The MAR Tactical Aggressive Growth Fund (AGZIX, AGZAX, AGZCX, AGZRX), which seeks attractive returns while targeting at most a 20% probability of loss, is for clients with a long-term investment horizon who are willing to tolerate higher volatility.
4) Saturna Capital Launches Institutional Shares of Amana Funds
Saturna Capital Corp., investment advisor to the Amana Mutual Funds Trust, announced the launch of lower-cost institutional shares of the no-load Amana Income (AMINX), Amana Growth (AMIGX), and Amana Developing World (AMIDX) Funds. Existing shares of all three are now designated as investor shares and trade under the funds’ original tickers of AMANX, AMAGX and AMDWX, respectively. The institutional shares are available on most major platforms, including National Financial Services (Fidelity), Charles Schwab, Pershing LLC and TD Ameritrade, with more planned for 2014.