Franklin Templeton expanded its active exchange-traded fund lineup with the addition of three thematic ETFs, its first such ETFs: Franklin Disruptive Commerce ETF (BUYZ), Franklin Genomic Advancements ETF (HELX) and Franklin Intelligent Machines ETF (IQM).
Each ETF has a net expense ratio of 0.50%, according to the firm’s website, are listed on the Chicago Board Options Exchange and are actively managed by Matthew Moberg and Joyce Lin of Franklin Equity Group.
“BUYZ, HELX and IQM are focused on investing in innovative companies within each theme – e-commerce, genomics and intelligent machines,” said Patrick O’Connor, global head of ETFs, in a statement.” Each thematic ETF seeks long-term capital appreciation.
BUYZ invests in companies “benefitting from or facilitating advancements in emerging areas of the e-commerce space that are facilitating more convenient, customized, secure and time-efficient transactions for both consumers and businesses,” according to the firm.
HELX invests in companies focused on new genomic-based research techniques and technologies designed to “extend and enhance the quality of human and other life, driven by the advent of cost-effective and rapid gene sequencing” and IQM invests in companies focused on machine learning technologies in areas including robotics, driverless vehicles and algorithmic data analysis.
Wilmington Fund Added to Schwab OneSource Select List
The Wilmington Global Alpha Equities Fund was added to Charles Schwab’s Mutual Fund OneSource Select List, Wilmington Trust’s Wilmington Investment Management division announced.
Class A shares (WRAAX) have a net expense ratio of 1.5%, while Class I shares (WRAIX) have a net expense ratio of 1.25%,
The Schwab Mutual Fund OneSource Select List includes no‐load and no‐transaction fee mutual funds that Wilmington said have been “rigorously evaluated” by Charles Schwab Investment Advisory. It is designed to help investors identify funds that offer the best combination of factors including performance, risk and expense, Wilmington noted.
From January 2017 through January 2020, the Wilmington Global Alpha Equities Fund outperformed its benchmark, the HFRX Equity Hedge Index, by 283 basis points on a net basis and captured about 50% of the return of global equities with only about a third of the volatility (as measured by the MSCI ACWI Index), according to Wilmington.
New York Life Investments Teams With CBRE
New York Life Investments is bringing additional alternative investment funds into its MainStay Fund lineup via a strategic partnership with real assets investment management firm CBRE Global Investors.
The partnership includes the launch of two mutual funds: The MainStay CBRE Real Estate Fund and MainStay CBRE Global Infrastructure Fund, both sub-advised by CBRE Clarion Securities, the listed securities investment management arm of CBRE Global Investors.
The MainStay CBRE Real Estate Fund invests in REITs, real estate owners, real estate managers, real estate brokers, real estate dealers and companies with significant real estate holdings, according to the firms. The MainStay CBRE Global Infrastructure Fund invests in a globally diversified portfolio of securities issued by infrastructure companies across the utilities, communications, energy, transportation and other sectors, they said.
Class A shares of the MainStay CBRE Real Estate Fund (CLARX) have a net expense ratio of 1.18%, while Class I shares (CRARX) have a net expense ratio of 0.83%. Class A shares of the MainStay CBRE Global Infrastructure Fund (VCRAX) have a net expense ratio of 1.27%, while Class I shares (VCRIX) have a net expense ratio of 0.97%.
“As we navigate late-cycle economic conditions, investors are increasingly seeking real assets strategies that offer an attractive combination of income, stability and growth potential over the long term,” according to Kirk Lehneis, New York Life Investment Management chief operating officer.
AlphaCentric Launches Energy Income Fund
Mutual fund company AlphaCentric rolled out the AlphaCentric Energy Income Fund.
The fund trades on the Nasdaq in three share classes: I shares with a net expense ratio of 1.49% (AEIIX), A shares with a net expense ratio of 1.74% (AEIAX) and C shares with a net expense ratio of 2.49% (AEICX). There’s a minimum investment $1,000 for retirement plans and $2,500 for other portfolios.
The fund focuses on the “infrastructure necessary to help drive the energy transition, including midstream and renewable infrastructure companies,” the firm said. It is sub-advised by Kayne Anderson Fund Advisors, a subsidiary of Kayne Anderson Capital Advisors, an alternative investment management firm with about $31 billion in assets under management across energy, infrastructure, real estate, credit and growth equity.
Positions taken by AEIIX are “based on the belief that 2020 marks the early stages of a massive transformation in global energy, as renewables take on an increasing role to meet rapidly growing energy demands,” the firm said. Investments focus on the infrastructure that it said is needed to “help drive this energy transition.” Its positions in the equity and debt of midstream and renewable infrastructure companies are focused on achieving total return with an emphasis on current income, the company said.
Catalyst Funds Adds Catalyst/Teza Algorithmic Allocation Income Fund
Alternative-focused mutual fund company Catalyst Funds launched the Catalyst/Teza Algorithmic Allocation Income Fund.
Class I shares (TEZIX) have a net expense ratio of 1.99%, while Class A shares (TEZAX) has a net expense ratio of 2.24% and Class C shares (TEZCX) has a net expense ratio of 2.99%.
Using an algorithmic machine learning technology designed by sub-advisor Teza Investments, the new fund invests in globally diversified multi-assets with a target risk exposure of 9% to 12% portfolio volatility, the firm said.
TEZIX provides diversified exposure, with investments across up to 39 major global asset classes, including equity indexes, government bond interest rates and commodities including energy, precious metals, base metals, agriculture and grains, it said.
The actively managed fund uses a trading strategy based on a “proprietary algorithm and rebalances positions and risk exposure, generally daily, in response to certain market conditions such as strong positive correlation between stocks and bonds or changes in that correlation,” Catalyst said. Its investments span up to 39 major global asset classes, including equity indexes, government bond interest rates and commodities including energy, precious metals, base metals, agriculture and grains.
— Check out last week’s portfolio product roundup here: Vanguard Lowers More Expense Ratios: Portfolio Products