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Top Portfolio Products: Ivy to Launch Two Income Funds With Apollo Credit

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New products and changes introduced over the last week include an ex-coal index series from FTSE Russell; a quarterly property index from EDHEC IEIF; and Ivy Funds is partnering with Apollo Credit Management to launch two funds.

Also, LPL announced a number of product and service changes; World Equity Group announced formal agreements for several advisor tools; and John Hancock Retirement Plan Services announced the addition of Morningstar’s HelloWallet tool.

Here are the latest developments of interest to advisors:

1) Ivy Funds, Apollo Credit to Launch Income Funds

Ivy Investment Management Company has announced that it plans to launch two funds together with Apollo Credit Management. Once the Ivy Apollo Strategic Income Fund and the Ivy Apollo Multi-Asset Income Fund are approved, they’re scheduled to become available in October.

The Ivy Apollo Strategic Income Fund will include sleeves intended to replicate the Ivy High-Income Fund strategy and the Ivy Global Bond Fund strategy, with flexible allocations to each of those strategies of between 10–70% of the fund’s total assets. In addition, there will be a 20% target allocation (static) to a sleeve managed by Apollo consistent with its Apollo Total Return strategy.

The Ivy Apollo Multi-Asset Income Fund is expected to have a 50% allocation to fixed income and a 50% allocation to equities. It will include sleeves consistent with the Apollo total return strategy (20% of the fund), Ivy high income strategy (30%), Ivy global equity income strategy (40%) and Ivy global real estate strategy (10%), which is sub-advised by LaSalle Investment Management Securities.

2) LPL Announces Additions, Changes

LPL Financial LLC has announced a number of additions and changes, both present and planned, to products and services.

The vendor affinity program, accessible through LPL’s resource center, is an initiative designed to help advisors reduce the complexity and costs of running their businesses. The program consists of a centralized repository of vendors that have agreed to provide their products and services to LPL advisors at discounted prices.

Offerings in the works include a robo-enabled solution, expected to pilot in 2016; fee reductions for centrally managed advisory platforms, also debuting in 2016; practice management consulting availability to a wider group of clients; and additional developments in its ClientWorks platform.

3) World Equity Group Adds Advisor Tools

World Equity Group has announced formal relationships with financial marketing organization United Advisors, automated marketing platform MarketingPro and public relations firm Impact Communications to provide tools to advisors on its platform.

In addition, the firm has teamed with Planning Business Transitions to provide business owners with Profit Picture, an online reporting portal that analyzes a company’s financial data and forms a strategy to achieve goals in business growth.

4) John Hancock Retirement Plan Services to Offer HelloWallet

John Hancock Retirement Plan Services has announced that it will offer Morningstar’s HelloWallet financial wellness tool to plan sponsors on its total retirement solution platform for use by their plan participants, starting in the fourth quarter of 2015.

HelloWallet is a Web-based and mobile application to help people manage their finances, integrating financial information so they can create budgets, analyze spending and savings trends and track progress toward goals. The technology engine uses findings from behavioral finance and industry experts to help guide people toward making financial choices in incremental steps.

5) FTSE Russell Adds Ex-Coal Index Series

FTSE Russell has announced the launch of its All-World ex Coal Index Series, which will assist market participants in managing their portfolio exposure linked to fossil fuels. The suite of benchmarks will omit companies that have certain exposure to coal or general mining companies with proved and probable coal reserves. FTSE Russell is also developing custom ex-coal solutions in line with impending legislation in Norway and California in the U.S.

The methodology behind the indexes is based on the exclusion of companies whose principal business activity is either coal mining or general mining as identified by the industry classification benchmark (ICB). In addition, revenues must arise from various forms of coal mining as stated by the standard industrial classification (SIC) system or based on the company’s most recent published annual report and accounts.

6) EDHEC IEIF Adds Quarterly Property Index

Research organization EDHEC IEIF (École des Hautes Études Commerciales du Nord-Institut de l’Épargne Immobilière et Foncière) has announced that after a rules revision of the EDHEC IEIF Commercial Property Index (France), introduced in January, that index has been withdrawn and the EDHEC IEIF Quarterly Commercial Property Index (France) has been added.

The added index integrates fixed and variable capital Sociétés Civiles de Placement Immobilier (SCPIs) (unlisted French property investment trusts, similar to REITs) invested in commercial property. The index is made up of SCPIs that, over the past year, have posted a volume of transactions on the secondary market in excess of 2 million euros ($2,193,408). The secondary market is the market for share transactions governed by articles 421-1 and following of the General Regulation of the French Financial Market Authority. For fixed-capital SCPIs, the price per share corresponds to the purchase price derived from the previous order book matching process. For variable-capital SCPIs, the share price corresponds to the subscription price observed upon the last compensated share redemption process.


Read the July 25 Portfolio Products Roundup at ThinkAdvisor.