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WisdomTree Teams With 55ip on Tax-Smart Model Portfolios: Portfolio Products

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WisdomTree Investments is using fintech firm 55ip’s automated, tax-smart technology as part of a new collaboration the companies said will make it easier for advisors to transition clients into diversified WisdomTree model portfolios with ongoing rebalancing and tax management.

The collaboration combines WisdomTree’s diversified model portfolios with 55ip’s tax-smart investment strategy engine that uses intelligent automation to “deliver a more intuitive model portfolio selection and implementation experience,” the firms said in a joint announcement.

The solution helps advisors run their practices more efficiently and drive better client outcomes, they said. It is expected to be made available to advisors at the end of 2020.

Thanks to 55ip’s existing integrations with major RIA custodians, access to WisdomTree’s model portfolios will be exposed to a new user base, the companies said.

Janus Henderson Introduces Floating Rate ETF

Janus Henderson Investors launched the Janus Henderson AAA CLO ETF (JAAA, with a 0.25% net expense ratio) on the New York Stock Exchange.

The actively managed exchange-traded fund was “designed to enhance access to a segment of the fixed income market that has historically only been available to institutional investors,” the company said.

The new ETF seeks to provide capital preservation and current income by investing at least 90% of its net assets in collateralized loan obligations of any maturity that are rated AAA or equivalent.

Rareview Capital Launches 2 Actively Managed ETFs

Rareview Capital introduced two new actively managed ETFs: the Rareview Dynamic Fixed Income ETF (RDFI, net expense ratio capped at 1.5%) and Rareview Tax Advantaged Income ETF (RTAI, 1.25%), both listed on the NYSE.

The new ETFs seek to combine the traditional benefits of fixed income with the non-traditional advantages of closed-end funds, the RIA and ETF sponsor said.

RDFI seeks to generate high monthly income by investing in closed-end funds and features a comprehensive fixed income strategy in which asset-class exposure is managed dynamically and driven by market opportunities. RDFI also implements a risk overlay process designed to protect the fund in case there is a significant rise in volatility.

RTAI takes a similar active management approach to potentially deliver high monthly income but seeks to provide a tax-free equivalent yield by investing in municipal bond closed-end funds. Its strategy could appeal to investors in high tax brackets because the ETF offers income exempt from federal income taxes, Rareview said.

AIG Rolls Out New Annuity

AIG Life & Retirement launched the Power Index Premier NY Index Annuity with Lifetime Income Builder that gives New York residents the option of a living benefit rider delivering lifetime income guaranteed to grow each year that income is deferred for up to 15 years.

Power Index Premier NY has no annual fees and is part of The Power Series of Index Annuities, which includes the index annuities that AIG offers outside New York.

It shares many similarities with the other AIG index annuities, including the combination of tax deferral, principal protection against down markets, growth potential via a diverse variety of index interest accounts and guaranteed lifetime income growth to help consumers prepare for retirement, according to the company.

Morgan Stanley Issues Social Bond

Morgan Stanley issued a $1 billion social bond to support affordable housing projects, the company said, calling it “the latest step in the firm’s ongoing strategy to advance market-based solutions to address sustainability challenges.”

The social bond follows the inaugural green bond issued by Morgan Stanley in 2015 that supported various renewable energy and energy efficiency projects.

— Check out last week’s portfolio product roundup hereProShares Launches ETF Focused on Transformational Changes: Portfolio Products


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