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Portfolio > Alternative Investments

Fidelity Investments Launches Fund Focused on Founder-Led Companies: Portfolio Products

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Fidelity Investments launched an actively managed mutual fund focused on founder-led companies.

Fidelity Founders Fund (FIFNX), with retail and advisor share classes, will focus on investing primarily in companies where the founder is either a member of the senior management team or is on the company’s board of directors.

Portfolio manager Dan Kelley, a 14-year Fidelity veteran and an 18-year industry veteran, will use fundamental and quantitative analysis to find what he believes to be mispriced investment opportunities as well as companies with strong earnings growth potential across the market cap spectrum.

“Our research and experience shows us that founder-led companies tend to be more innovative, customer focused, and better generators of shareholder value than companies without founder engagement,” Kelley said in a statement. “However, not every founder is created equal, which is why conducting deep fundamental analysis and rigorous on-the-ground research is crucial in seeking to deliver the best long-term value to shareholders.”

The analysis will include evaluating growth potential, valuation, liquidity, and investment risk, along with fundamental analysis of factors such as each issuer’s financial condition, its industry position, and market and economic conditions to select investments.

The fund has a net expense ratio of 1%.

Franklin Templeton Introduces Low-Cost Regional and Country ETFs in Canada

Franklin Templeton has expanded its Franklin LibertyShares ETF offerings with its first suite of passive ETFs listed in Canada, providing investors exposure to a specific region or country at a low fee.

The management fees for these new Canada, United States, Japan and Europe (excluding U.K.) passive ETFs range between 5 to 9 basis points and the ETFs are traded on the Toronto Stock Exchange.

The Franklin FTSE Canada All Cap Index ETF (FLCD), with a management fee of 5 bps, invests primarily in equity securities of Canadian issuers, seeking to replicate the performance of FTSE Canada All Cap Domestic Index.

The Franklin FTSE U.S. Index ETF (FLAM), which invests primarily in equity securities of mid- and large-cap U.S. issuers, tracks the performance of FTSE USA Index and has a management fee of 7 bps.

The Franklin FTSE Japan Index ETF (FLJA), which seeks to replicate the performance of FTSE Japan Index, invests primarily in equity securities of mid- and large-cap Japanese issuers and has a management fee of 9 bps.

The Franklin FTSE Europe ex U.K. Index ETF (FLUR), which also has a management fee of 9 bps, tracks the performance of FTSE Developed Europe ex U.K. Index. It invests primarily in equity securities of mid- and large-cap issuers in developed markets in Europe excluding the U.K.

LifeYield Launches Taxficient Asset Location Swaps

Cloud-based tax solution LifeYield unveiled the Taxficient Asset Location Swaps, which allows advisors to provide clients with a step-by-step roadmap that shows how relocating assets can save significant tax dollars.

The update is an enhancement to LifeYield’s Taxficient Score, which quantifies the tax efficiency of a household portfolio by assigning a score between 0 and 100 and then shows how to implement those changes to improve investor financial outcomes.

Tax-Smart Asset Location is a strategy to save and earn more by optimizing the location of assets, as opposed to focusing entirely on asset allocation.  LifeYield’s research of millions of accounts in their database shows the average Taxficient Score is a 52 on a scale of 0-100, which indicates most households are half as tax-efficient as they could be.

The new Taxficient Asset Location Swaps tool suggests the specific trades needed to improve the Taxficient Score as well as adjustments to the portfolio that quantify the value of improved Asset Location, which improves after-tax returns.

Vestwell Partners with OnPay to Give Advisors Access to Online Payroll Services

Digital retirement platform Vestwell announced a partnership with OnPay, a payroll software serving small and medium-sized businesses.

Vestwell and OnPay both service plan sponsors through a co-branded experience that gives advisors and accounting firms the ability to support clients with a customized and cohesive experience.

Through this new relationship, accounting firms who leverage OnPay’s technology now have a retirement plan offering that simplifies their client’s ability to offer tax-advantaged plans.

Vestwell advisors whose clients still use antiquated payroll solutions can migrate towards a modernized offering that syncs directly with their retirement platform.

According to Vestwell, integration with payroll is a key pain point of traditional retirement plan offerings, and the Vestwell and OnPay relationship underscores a joint commitment to helping small businesses transfer funds and data without the complications of disparate systems.

—Read the last portfolio product roundup here: Logan Capital Acquires Dividend Growth Strategies: Portfolio Products


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