New products and changes introduced over the last week include two new ETFs from Deutsche Asset & Wealth Management, a fossil fuel-free fund from Pax World, a large-cap growth fund from AMI Management, and three additional strategies from AssetMark.
In addition, Hennion & Walsh announced a unit investment trust, Security Benefit announced an expanded investment lineup for its variable annuities, and Global Atlantic has launched a life insurance unit, Accordia Life.
Here are the latest developments of interest to advisors:
1) Deutsche Asset & Wealth Management Launches Two ETFs
Deutsche Asset & Wealth Management has announced the launch of the db X-trackers Solactive Investment Grade Subordinated Debt Fund (SUBD), which offers investors access to investment-grade subordinated bonds, and the db X-trackers Harvest MSCI All China Equity Fund (CN), which provides investors with broad exposure to onshore and offshore Chinese equities.
SUBD tracks the Solactive Subordinated Bond Index, a rules-based, market value-weighted index designed to track the investment-grade subordinated corporate bond market of U.S. dollar-denominated corporate securities classified as subordinated or junior subordinated. By tracking the subordinated investment grade debt mirrored by the index, SUBD is designed to provide higher yields via bonds of investment-grade companies. The higher yields are produced by the subordinated nature of the bonds rather than by using junk bonds. The fund will be subject to marginally higher credit risk due to its investments in subordinated debt.
CN offers direct access to China A-shares in addition to China B-shares, China H-shares, China Red Chips, China P-Chips, China ADRs, and securities of Chinese companies listed in the US and Singapore. It will seek to track the MSCI All China Index, which captures large- and mid-cap Chinese securities listed inChinaand Hong Kong, as well as in theU.S.andSingapore, and which currently has 612 constituents.
2) Pax World Adds Fossil Fuel-Free Fund
Pax World Management LLC, investment adviser to Pax World Funds, has announced that the Pax World Growth Fund (PXWGX) has divested its fossil fuel holdings and will henceforth pursue a fossil fuel-free investment strategy. In lieu of fossil fuel companies, PXWGX will substitute investments in companies that are proactively developing solutions to global sustainability challenges, including climate change, water, food and health care. The fund is managed by Tony Trzcinka.
The fund seeks to avoid investing in companies engaged in the exploration, development and production of fossil fuels including oil, coal, and natural gas. In addition, while PXWGX has always integrated environmental, social and governance (ESG) factors into stock selection and portfolio construction, it will now increasingly focus on investing in high-impact companies whose products, services or business strategies offer positive solutions to global sustainability challenges.
3) AMI Asset Management Launches Large Cap Growth Fund
AMI Asset Management has launched the AMI Large Cap Growth Fund (AMILX). AMILX’s portfolio team utilizes a distinct “growth at a reasonable price” strategy of investing in companies whose revenues are derived from recurring sources, which AMI defines as products or services with lifespans of two years or less.
Beyond the fundamental criteria required of a company, AMILX will seek to purchase securities at a discount of 10% or more to the team’s internal estimate of the security’s intrinsic value, which is determined using AMI’s proprietary models. All investments must exhibit recurring revenue business models and derive at least 50% of their revenue from recurring sources.