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AssetMark Launches 'Bucketed' Framework for Retirement Clients: Portfolio Products

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AssetMark Inc. launched a new program that includes a suite of turnkey, professionally managed portfolios designed to deliver stable cash flows to clients planning for retirement.

The AssetMark Guided Income Solutions uses a “bucketed” investing framework to provide advisors with a simple approach to converting clients’ nest eggs into a steady, tailored and automatic income replacement based on their personal financial goals.

The program segments clients’ assets based on their unique short-term, intermediate-term, and long-term objectives, accommodating the psychological tendency for individuals to think about spending needs in terms of separate mental accounts.

The two longer-term buckets are rebalanced gradually over time to systematically reduce risk as clients approach the end of their target duration, providing growth and income that can potentially extend the portfolio life, while minimizing the risk of income shortfall. The short-term bucket is personalized to equal two years of the client’s income needs, providing adequate liquidity to support distributions, even during periods of market volatility.

In addition, Guided Income Solutions features a modern digital calculator and enhanced goals-based proposal and reporting capabilities. Advisors can leverage the calculator by inputting two of three inputs about the client’s goal, immediately receiving income and bucket projections, as well as a host of other portfolio attributes.

Catalyst Funds Launches Asset-Backed Security Strategy

Catalyst Funds, an alternative-focused mutual fund company, launched a new fund that employs an income-focused strategy that invests in a variety of nontraditional income asset classes.

The Catalyst Enhanced Income Strategy Fund (EIXIX) invests primarily in agency and non-agency residential mortgage backed securities (RMBS) as well as other asset-backed income securities, including securities backed by aircraft, automobiles, credit card receivables and student loans.

Under normal circumstances, the fund will invest over 25% of its assets in agency and non-agency RMBS and will diversify geographically and among the servicing institutions that service or originate these securities. The fund’s objective is current income.

According to Jerry Szilagyi, CEO of Catalyst Funds, there couldn’t be a more opportune time for the Catalyst Enhanced Income Strategy Fund to debut with interest rates on the rise.

“This fund offers investors an income-oriented strategy fueled by alternative sources such as mortgage backed securities that can provide insulation from the impact of rising rates,” Szilagyi said in a statement.

The investment strategy is designed to include 12 monthly distributions to shareholders. The level of monthly distributions (including any return of capital) is not fixed and is not designed to generate a fixed percentage of the fund’s current net asset value per share.

The fund will trade under the tickers EIXAX, EIXCX and EIXIX, with respective net expense ratios of 1.78%, 2.53% and 1.53%.

Legg Mason Launches New Actively Managed Short Duration Income ETF

Legg Mason announced the launch of its newest actively managed exchange-traded fund, the Western Asset Short Duration Income ETF (WINC).

A short-duration (0-3 years) fixed income strategy, WINC seeks to generate current income via a diversified portfolio with an emphasis on low interest rate sensitivity, higher credit quality and active credit selection.

According to Michael Buchanan, deputy chief investment officer of Western Asset, “WINC targets short-duration credit exposure while leveraging Western Asset’s global investment capabilities and strong risk management program, employing an active process that is both top-down and bottom-up to help identify attractive credit and income opportunities while actively managing risk.”

Tortoise Launches 2 Digital Infrastructure ETFs 

Tortoise launched two digital infrastructure ETFs: Tortoise Cloud Infrastructure Fund (TCLD) and Tortoise Digital Payments Infrastructure Fund (TPAY).

The Tortoise Cloud Infrastructure Fund is an ETF designed to track the Tortoise Global Cloud Infrastructure Index, which represents the existing global cloud infrastructure landscape. The index comprised of companies that are materially engaged in the cloud infrastructure industry, including cloud systems/services, cloud management software, cloud hosting, cloud security, cloud hardware and cloud data centers.

Tortoise Digital Payments Infrastructure Fund is an ETF designed to track the Tortoise Global Digital Payments Infrastructure Index, which represents the existing global digital payments landscape.

This index consists of companies that are materially engaged in digital payments, including merchant processing and settlement, real-time record keeping, settlement networks, and Fintech products/services that facilitate the ease, efficiency and speed of electronic transactions. This includes companies such as credit card networks, electronic transaction processing and associated products and services, credit card issuers, electronic transaction processing software or online financial services marketplaces.

FTSE Russell introduces Market-Based Allocation Index Series

FTSE Russell has introduced the FTSE Market Based Allocation Index Series.

The new series comprises five indexes designed for use by the U.S. wealth management and financial advisory community and other multi-asset investors.

FTSE Russell developed this new index series in response to feedback from customers. U.S. wealth managers, financial advisors and other multi-asset investors can now choose from five indexes, ranging from Conservative to Aggressive, with objectively defined risk profile levels.

The asset allocation levels for each index reflect the average asset allocation levels of real-world multi-asset funds as reported in Morningstar’s fund database. The indexes are overseen by FTSE Russell’s global governance framework and can be used to benchmark asset allocation-based investment strategies or as the basis for portfolio construction and research.

—Check out the last portfolio product roundup here: Amplify ETFs Launches International Online Retail ETF: Portfolio Products


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