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WisdomTree Partners with Jeremy Siegel to Challenge 60/40 Strategy: Portfolio Products

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WisdomTree launched two multi-asset, open architecture model portfolios designed to challenge the traditional 60/40 portfolio approach.

The new Siegel-WisdomTree Global Equity Model Portfolio and Siegel-WisdomTree Longevity Model Portfolio were developed in a collaboration between  the firm and Professor Jeremy Siegel, its senior investment strategy advisor, professor of finance at The Wharton School at the University of Pennsylvania and author of Stocks for the Long Run.

The firm was looking for a way to “help investors and advisors solve some significant challenges in the market,” Tom Skrobe, WisdomTree head of product solutions, told ThinkAdvisor at TD Ameritrade’s National LINC 2020 conference in Orlando, Florida, last week. For one thing, it will help advisors “deliver a solution [so] that their clients could generate income in retirement, [and] also manage their longevity risk because people are living longer and will need their assets…for longer periods of time than they have in the past,” he said.

The portfolios are “heavily allocated to equities … in seeking to mitigate the longevity shor-fall risk,” and feature an all-exchange-traded fund portfolio structure that WisdomTree said helps to “optimize tax-efficiency.”

The total net expense ratio is 0.29% for the Siegel-WisdomTree Global Equity Model Portfolio and 0.25% for the Siegel-WisdomTree Longevity Model Portfolio.

Although the Longevity Model Portfolio is strategic in nature, the firm said it also “reflects tactical tilts based on market conditions” and may include WisdomTree and non-Wisdom Tree ETFs at any given time. Currently,  the portfolio includes mostly WisdomTree funds but also features the Vanguard High Dividend Yield ETF (0.06% net expense ratio), Vanguard International High Dividend Yield ETF (0.32%) and Hartford Multifactor Developed Markets ETF (0.29%). It is “not a static model,” Siegel told ThinkAdvisor. “If one asset class suddenly does not look favorable for one reason or another, we will reduce that asset allocation.”

The new model portfolios were made available first to advisors via the Model Market Center on the TD Ameritrade Institutional platform.

AlphaCentric Introduces LifeSci Healthcare Fund

The new AlphaCentric LifeSci Healthcare Fund is focused on biotech and healthcare equities, and has a net expense ratio of 1.73% for A shares which also charge a 5.75% load (LYFAX), 2.40% for C shares (LYFCX) and 1.48% for I shares (LYFIX).

The new fund “leverages the expertise of more than 20 PhDs and MDs and the scientific and investment backgrounds” of AlphaCentric’s portfolio management team to “identify companies with groundbreaking scientific research that the team believes can achieve the Fund’s investment objective of long-term capital appreciation,” it said.

The strategy focuses on science-driven biotechnology and pharmaceutical companies that the company said “address high, unmet medical needs” and positions are concentrated on those two sectors as well as health care facilities and services, and medical equipment and device industries.

The fund is managed by Mark Charest, PhD, and sub-advised by LifeSci Fund Management, a research-driven investment bank and asset manager with “deep domain expertise” in life sciences, AlphaCentric said.

Broadridge Launches New Forecasting Module

Broadridge Financial Solutions launched a new forecasting module within its revenue and expense management platform.

Typically performed on disconnected spreadsheets and applications or just done manually, the process of projecting fees and constructing budgets can now be performed along with revenue and expense processes within a single technology platform, the firm said.

Broadridge’s revenue and expense management solution tracks and calculates fees across various complex workflows and helps asset managers and other financial services providers improve revenue reporting, it said. The technology is used to automate processes to “achieve more efficient accounting functions, faster invoicing, streamlined expense reconciliation, more accurate billing, improved auditing and now forecasting,” it said.

It lets clients “leverage existing billing constructs and data already within the revenue and expense platform, eliminating the need to re-configure on multiple platforms” and takes advantage of Broadridge’s recently announced strategic partnership with Sisense. Embedded Sisense data intelligence tools “provide dashboards and insightful management information reporting in the complex budgeting and forecasting process,” Broadridge said.

–Check out last week’s Portfolio Products here: State Street Enhances SPDR Portfolio ETFs: Portfolio Products


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