New products and changes introduced over the last week include management changes at several Vanguard funds and at Touchstone’s Small Cap Value Fund; new ETFs from Global X, VanEck and FlexShares; and Schwab added participants to its OpenView Gateway.
Also, Folio Institutional added Morningstar models to its Model Manager Exchange; ssetMark and Total Bank Solutions partnered to provide a customized insured cash deposit program for advisors; Marstone and Quovo partnered on data aggregation; and Advicent announced the latest release of its financial planning portal.
Here are the latest developments of interest to advisors:
1) Vanguard Changes Management Teams at Several Funds
Vanguard announced that MYG Investment Management Limited is no longer serving as an advisor to the $21 billion Vanguard International Growth Fund (VWIGX) and $2 billion Vanguard Variable Insurance Fund–International Portfolio. Baillie Gifford and Schroder Investment Management North America are now splitting management of the fund, 60/40.
In addition, Vanguard announced that David Palmer of Wellington Management Company is now the sole portfolio manager of its $1 billion Capital Value Fund (VCVLX). He had previously co-managed the fund with Peter Higgins.
2) Touchstone Names New Subadvisor for Small Cap Value Fund
Touchstone Advisors named Boston-based LMCG Investments, LLC as subadvisor to its Touchstone Small Cap Value Fund (TVOAX, TVOCX, TVOYX, TVOIX).
LMCG replaces DePrince Race & Zollo, Inc. as well as Russell Implementation Services, Inc. which served as interim subadvisor to manage the fund during the transition, from May 21 to June 30, 2016.
3) Global X Adds Conscious Companies ETF
Global X Funds launched the Global X Conscious Companies ETF (KRMA), which tracks a proprietary index created by Concinnity Advisors.
The index draws on numerous sources to identify companies that have demonstrated a long-term focus on creating positive outcomes for a variety of stakeholders, including employees, customers, communities, suppliers and stock and debtholders.
The fund’s holdings have undergone analysis to determine their adherence to the academically-backed Multi-stakeholder Operating System. KRMA’s expense ratio is 0.43%.
4) VanEck Adds Emerging Markets Sovereign Bond ETF
VanEck launched the VanEck Vectors EM Investment Grade + BB Rated USD Sovereign Bond ETF (IGEM) which seeks to replicate as closely as possible the price and yield performance of the J.P. Morgan Custom EM Investment Grade Plus BB-Rated Sovereign USD Bond Index before fees and expenses. EM stands for emerging market and USD for U.S. dollar.
IGEM has a net expense ratio of 0.40%, which is capped until September 1, 2017.
5) FlexShares Adds Two Sustainable Investing ETFs
FlexShares launched the FlexShares STOXX Global ESG Impact Index Fund (ESGG ) and FlexShares STOXX US ESG Impact Index Fund (ESG).