Vanguard announced plans to change benchmarks for three sector funds and their corresponding ETF Shares: Vanguard Telecommunication Services Index Fund, Vanguard Consumer Discretionary Index Fund and Vanguard Information Technology Index Fund.
The changes will be consistent with S&P Dow Jones and MSCI’s planned revisions announced in November 2017 to the funds’ respective target benchmarks under its Global Industry Classification Standards methodology.
“We’re pleased with MSCI’s changes as we believe the reconstituted benchmarks provide investors with a better representation of the sectors they track,” said Vanguard Chief Investment Officer Greg Davis in a statement. “We have determined that these changes and our approach to adopting the new benchmarks are in the best interests of shareholders.”
Vanguard’s Equity Index Group will carefully manage the transition. Beginning in the second quarter of 2018, the funds will track custom transition benchmarks. These interim benchmarks are designed to ensure the changes are implemented in the most transparent, cost-efficient way for the funds’ investors, while also reducing tracking error and mitigating market impact.
The funds will track these custom benchmarks until MSCI’s index changes are complete, at which time the funds will revert back to their applicable MSCI benchmarks.
The transition to the new benchmarks is not expected to result in material capital gains distributions to shareholders or changes to the funds’ expense ratios, according to Vanguard.
Davis Advisors Launches Davis Select International ETF
Davis Advisors expanded its suite of actively managed exchange traded funds (ETFs) with the launch of the Davis Select International ETF (DINT).
DINT, which has a net expense ratio of 0.75%, invests primarily in stocks with businesses outside the United States. The fund invests in approximately 30 stocks at a given time.
As with all Davis ETFs, DINT seeks to offer long term capital appreciation through a high conviction, benchmark agnostic portfolio. It provides the traditional benefits of ETFs along with Davis’ unique investment discipline and experienced active management team.
Allianz Life Bolsters Its Fixed Index Universal Life Lineup
Allianz Life launched two new fixed index universal life (FIUL) insurance products, Allianz Life Pro+ Elite and Allianz Asset Pro+.
Allianz Life Pro+ Elite is an enhanced version of the popular Allianz Life Pro+ product, now offering more proprietary index allocation options including bonused allocation options.
Allianz Asset Pro+ is a new product designed specifically for broker-dealers and financial professionals focused on helping meet their clients’ holistic planning needs with a simplified solution offering death benefit protection, flexibility and tax advantages.
ImpactAssets Releases Impact Investment Fund Database
ImpactAssets released its 2017-18 ImpactAssets 50 (IA 50), a free online database for investors and financial advisors that features a diversified listing of 50 private capital fund managers that deliver social and environmental impact as well as financial returns.
IA 50 users can sort and filter across a range of asset classes (debt, private equity and real estate), geographies, size of funds, themes and more.
Fund managers included in the seventh annual IA 50 manage an estimated $29.2 billion in assets devoted to creating measurable, positive impact — nearly double the assets managed by IA 50 managers in the previous year.
The IA 50 is not an index or investable platform and does not constitute an offering or recommend specific products.
In order to be considered, fund managers needed to have at least $10 million in assets under management, more than three years of experience as a firm with impact investing, documented social and/or environmental impact and be available for U.S. investment.
BNY Mellon Expands Role of Distribution Intelligence and Workflow Solutions Suite
BNY Mellon expanded the role of its Intermediary Analytics solutions suite, formerly Albridge Analytics, in supporting asset managers and broker-dealers globally.
The integration of Intermediary Analytics into BNY Mellon’s Asset Servicing business facilitates the creation of new and enhanced distribution solutions intended to help BNY Mellon clients improve business performance and maximize growth opportunities.
Intermediary Analytics aggregates sales and asset data from broker-dealers to provide granular financial product intelligence. Its analytical insights currently focus on mutual fund, ETF and separately/unified managed account products.