Advisors Asset Management (AAM) is entering the U.S. exchange-traded fund (ETF) market with the launch of two dividend ETFs.
The inaugural ETFs — AAM S&P 500 High Dividend Value ETF (NYSE: SPDV) and AAM S&P Emerging Markets High Dividend Value ETF (NYSE: EEMD) — focus on income and value, seeking to help investors meet their current cash flow and future capital appreciation goals.
“We are excited to enter the ETF market,” said Lance McGray, managing director, head of ETF product at AAM. “For nearly two decades AAM has offered investors innovative income generating solutions, and these ETFs are the most recent addition to our diverse product suite.”
SPDV targets attractively valued U.S. large-cap stocks that exhibit both a high dividend yield and sustainable dividend distribution characteristics. EEMD targets attractively valued emerging market stocks that exhibit both a high dividend yield and sustainable dividend distribution characteristics.
At the core of these solutions is the S&P Dividend and Free Cash Flow Yield Index series, which are designed to balance current cash flow with future capital growth. The underlying index series focuses on two key valuation indicators to identify sustainable dividend-paying stocks offering fundamental value: dividend yield and free cash flow yield.
According to McGray, reaching for the highest yielding stocks is not always the best course of action.
“Just as important as the actual dividend yield is the sustainability of that dividend,” he said in a statement. “In our opinion, free cash flow yield is an ideal indicator of dividend sustainability, and when coupled with dividend yield in the selection process, the result can be powerful. This may help investors not only meet their current cash flow needs, but also potentially provide future capital growth.”
BNY Mellon Investment Management Launches Multi-Asset Fund
BNY Mellon Investment Management launched the BNY Mellon Insight Broad Opportunities Fund, a new multi-asset fund that invests across a wide range of asset classes using multiple investment strategies.
Insight’s Matthew Merritt, Steve Waddington and Michael Ford are the fund’s primary portfolio managers.
The fund’s assets will be allocated among a broad range of asset classes, including equities, fixed income, currencies, real estate, listed infrastructure and commodities, in both developed and emerging markets.
In seeking to provide a minimum average annual total return of USD 1-Month LIBOR plus 4.5% over rolling five-year periods, the portfolio managers select investment strategies and asset classes based on their view of macroeconomic themes at the time of investment.
The fund offers Class A (DIOAX), Class C (DIOCX), and Class I (DIOIX) shares with a minimum initial investment of $1,000. The fund also offers Class Y (DIOYX) shares generally with a minimum initial investment of $1 million.
FTSE Russell Launches 2 New ESG Index Series
FTSE Russell expanded its Sustainable Investment index offering with the launch of the FTSE Global Climate Index Series and the FTSE ESG Index Series.
The FTSE Global Climate Index Series uses index methodology to weight index constituents by three climate change measures while maintaining a risk and return profile similar to broad market benchmarks. The transparent, rules-based construction reflects the performance of eligible securities from the FTSE All-World, FTSE All-Share and the Russell 1000 Indexes, with constituent green revenues measured by FTSE Russell’s Green Revenues data model.
The FTSE ESG Index Series is designed to help investors align investment and ESG objectives into a broad benchmark while maintaining industry neutrality. Company weights within each index are tilted using FTSE Russell’s ESG Ratings and data model and reflect the performance of eligible securities from the FTSE Developed, FTSE Emerging, FTSE All-Share and Russell 1000 Indexes.
Pax World Announces Annual Reconstitution of the Pax Global Women’s Leadership Index
There were 63 securities added to the index and 48 deleted as a result of the annual reconstitution. A comprehensive list of the changes to the index, including additions and deletions, has been posted to the Pax World website.
The Pax Global Women’s Leadership Index is the first index consisting of the highest-rated companies in the world for advancing women’s leadership. Pax World Gender Analytics rates companies on five factors: representation by women on the board of directors, representation of women in executive management, presence of female CFOs and CEOs, and whether they are signatories to the Women’s Empowerment Principles, a joint initiative of the UN Global Compact and UN Women.
Companies in the index also meet threshold environmental, social and governance (ESG) standards, as rated by MSCI ESG Research.
Among companies in the index, the percent of senior management positions held by women has increased 6% and the percent of board seats held by women has increased 4% since the index was created in 2014.
Jefferson National Adds New Investment Options to Help Advisors Build Robust Portfolios
Jefferson National, operating as Nationwide’s advisory solutions business, added two new funds to Monument Advisor, a flat-fee investment-only variable annuity (IOVA).
In response to advisor demand, Monument Advisor’s lineup now includes its first DoubleLine Capital fund, the DoubleLine NVIT Total Return Tactical Fund. The strategy seeks to enhance returns by exploiting inefficiencies within the subsectors of the fixed income market, while maintaining active risk management constraints. DoubleLine’s preemptive asset allocation process raises or lowers asset weightings based on analysis of sector fundamentals and relative valuation.
In addition, Monument Advisor rounds out its suite of funds from Dimensional Fund Advisors (DFA), now offering the VA Equity Allocation Fund. The fund encompasses diversified value added exposure to global equity securities in both developed and emerging markets. It overweights companies with smaller market capitalizations, lower relative prices, and higher profitability to increase expected returns.
AIG Introduces New York’s First Fixed Annuity With a Guaranteed Lifetime Withdrawal Benefit
American International Group Inc. (AIG) launched the Assured Edge Income Builder-NY, a new fixed annuity product issued by The United States Life Insurance Co. in New York City.
AIG launched Assured Edge Income Builder in other states last year, but this is the first fixed annuity with a guaranteed lifetime withdrawal benefit offered in the state of New York.
Assured Edge Income Builder offers clients a low-risk, long-term retirement income solution and guaranteed lifetime income.
With Assured Edge Income Builder, clients have the flexibility to elect lifetime income immediately or in the future, while maintaining access to their principal. Once lifetime income withdrawals begin, they will continue even if the contract value is depleted to zero, unless there is an excess withdrawal.
Other features include future income growth and principal protection.
Assured Edge Income Builder-NY is available only in New York. The guaranteed lifetime withdrawal benefit is automatically included in the contract issue with no annual rider fee.
Envestnet | Tamarac Introduces Integration With RightCapital
Envestnet | Tamarac announced a new integration with RightCapital Inc., a leading financial planning software platform for RIAs and independent broker-dealers.
RIAs who use RightCapital to help their investor clients with financial and tax planning now will be able to pull in account information and holdings data daily using the Tamarac API, allowing advisors to work more efficiently and deliver real-time information to their clients.
“As an open platform, Tamarac is always looking for ways to offer advisors the flexibility and support they need to automate their business processes through meaningful integrations,” said Stuart DePina, president of Envestnet | Tamarac, in a statement. “We’re excited to introduce this integration with RightCapital to help advisors deliver data-driven insights and engage their clients in holistic discussions about their finances.”
The new integration will help advisors save time and streamline their workflows since the Tamarac data automatically will be updated daily within RightCapital’s platform.
JOHCM Launches Global Income Builder Fund
The new strategy is managed by JOHCM’s multi-asset team, led by Giorgio Caputo, which was bolstered by the recent hires of senior fund manager Robert Hordon and investment analysts Rémy Gicquel and Hugues Le Bras.
The JOHCM Global Income Builder Fund (JOBIX) seeks to provide an attractive and persistent stream of income along with capital growth, while investing with a margin of safety. JOHCM’s multi-asset team employs a differentiated bottom-up approach to investing across asset classes that is rooted in global value investing and focuses on the protection and preservation of capital.
Capacity for the strategy has been set at $10 billion, at which point JOHCM will take steps to limit additional inflows in order to protect the interests of existing investors.
Rational Funds Introduces the Rational Dynamic Brands Fund
Rational Funds announced the Rational Defensive Growth Fund will now be the Rational Dynamic Brands Fund, which includes tickers HSUAX, HSUCX and HSUTX.
HSUTX is sub-advised by Accuvest Global Advisors.
The fund invests in a focused group (25-50 holdings) of the most attractive brands contained in the Alpha Brands Consumer Spending Index. The index tracks the performance of 200 highly recognizable and relevant U.S. and foreign brands with a business to consumer and business to business focus.
The fund’s top ten holdings include Amazon (AMZN), Home Depot (HD), Activision Blizzard (ATVI), Monster Energy (MNST), Nestle (NESN), JPMorgan Chase (JPM), Cisco Systems (CSCO), Microsoft (MSFT), Apple (AAPL) and Sherwin Williams (SHW).