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June 17, 2019 at 09:51 AM
A Fidelity sign (Photo: AP)
Fidelity Investments has expanded its universe of investment opportunities for advisors with the launch of new business cycle and factor ETF model portfolios.
The business cycle model portfolios incorporate a dynamic investment approach based on shifts in the business cycle, designed to enhance risk-adjusted returns. The offering includes:
- Fidelity Multi-Asset Business Cycle Model Portfolio, designed to provide enhanced risk-adjusted returns by overweighting asset classes and sectors that tend to outperform during a given business cycle phase, while underweighting those that tend to underperform
- Fidelity Sector Equity Business Cycle Model Portfolio, designed to provide enhanced risk-adjusted returns by overweighting sectors that tend to outperform during a given business cycle phase, while underweighting those that tend to underperform
These open architecture models use Fidelity mutual funds and ETFs in addition to ETFs from BlackRock iShares.
The factor ETF model portfolios uses only Fidelity factor ETFs and can function as a complement to existing U.S. equity positions or as standalone U.S. equity positions within a diversified portfolio. The offering includes:
- Fidelity U.S. Equity Factor ETF Model Portfolio, designed to provide enhanced risk-adjusted returns for clients looking for capital appreciation
- Fidelity U.S. Equity Defensive Factor ETF Model Portfolio, designed to help reduce risk and lower volatility, which may help clients who are more sensitive to market downturns
- Fidelity U.S. Equity Income Factor ETF Model Portfolio, designed to provide income generation and maximize realized dividend yield, which may benefit clients in or approaching retirement
“These new model portfolios leveraged the feedback we heard from advisors who were looking to incorporate specific strategies to complement the allocations in their clients’ portfolios,” said Matt Goulet, senior vice president, Fidelity Institutional Asset Management, in a statement.
Fidelity Model Portfolios are available to advisors at broker-dealers, RIAs, banks and insurance companies. More than 100 advisory firms have access to Fidelity Model Portfolios through turnkey platforms.
A Consortium of Firms Offer Packaged Retirement Plan Program
LeafHouse, Voya Financial and several fund companies have joined together to offer FlexPrecision, a packaged program for retirement plans that streamlines plan administration for advisors and plan advisors while offering flexibility.
It “aims to provide investment solutions while reducing the workload associated with serving employer-based retirement plans,” according to LeafHouse, a national discretionary investment manager for retirement plans.
LeafHouse is responsible for the program’s fund selection, managed models and fund mapping; Voya Financial is the recordkeeper; and Dimensional, Franklin Templeton and Lord Abbett manage the funds.
“The advantages of working with this consortium allow financial advisors to concentrate on market opportunities and cultivate new business” whether they be retirement specialists or generalists, according to the LeafHouse statement.
Fiserv Integrates Retirement Income and Insurance Planning Tools
Fiserve, a global Fintech company, has introduced new tools and an enhanced user interface into its Financial Advice Financial suite to help advisors provide clients with retirement income planning and risk mitigation through the use of annuities, life, and long-term care insurance.
