Here comes Vanguard’s global credit bond fund: News Scan
Our weekly roundup of industry highlights
Vanguard proposes global credit bond fund
Vanguard filed preliminary registration for a global credit bond fund, which the firm expects to launch in November.
The fund will be actively managed and aim to invest in corporate and non-corporate obligations, excluding government-guaranteed issues, the firm said. The fund, a portion of which will be hedged to the U.S. dollar, will offer investors two share classes: Investor Shares (VFINX), with an expense ratio of 0.35%, and Admiral Shares (VFIAX), with an expense ratio of 0.25%, Vanguard said.
“Our clients are increasingly looking to reduce their home bias and harness the return potential and diversification benefits offered by the international equity and fixed income markets,” said John Hollyer, global head of Vanguard’s fixed income group, adding that the fund’s “wide range of security selection opportunities and regional and sector exposures, combined with the flexibility of active management, will make it an attractive core or satellite portfolio holding.”
Alts made available to more clients at AllianceBernstein
AllianceBernstein announced it has reached an agreement to provide iCapital Network's alternative investment platform to high-net-worth investors, RIAs and multi-family offices.
The partnership will simplify access and streamline the subscription process and performance reporting, improving the advisor and investor experience, the firm said.
"With today's lower expected return environment, potential for rising interest rates, inflationary pressures and increasing volatility, it is critical for investors to maintain a well-designed allocation to alternatives that can help their portfolios weather uncertain markets," said Matthew Bass, head of global product strategy and alternatives business development at AllianceBernstein.
Assetmark launches 12 new portfolios
AssetMark announced 12 new portfolios coming to its platform, which the firm expects will drive higher returns.
"Dimensional Fund Advisors' robust investment process addresses a growing advisor need for low-cost, tax-efficient strategies," said David McNatt, senior vice president of product management and development at AssetMark.
The portfolios, known as AssetMark MarketDimensions, are aligned with six risk profiles to target investors in different life stages, says the firm.
Global X introduces new ETF family
Global X is releasing two new ETFs aimed at helping investors achieve a specific income level: the Global X TargetIncome 5 ETF (TFIV) and the Global X TargetIncome Plus 2 ETF (TFLT). They have expense ratios of 0.77% and 0.78%, respectively, according to Morningstar.
The funds were developed by Wilshire Associates. "We've structured indexes that aim to target specific yield objectives while mitigating risks," Jason Schwarz, president of Wilshire Analytics and Wilshire Funds Management, said in a statement.
TFIV will seek a 5% yield, net of fees, and TFLT will seek the current 10-year US Treasury note plus 2%, according to the firm, which expects the funds to pay distributions monthly.
Innovator launches ETF with structured outcomes
Innovator Capital Management listed the Innovator S&P 500 Defined Outcome ETF, which offers protection levels of 9%, 15% or 30% over a near one-year period, the firm said.
"No other ETFs in the market today seek to offer investors defined exposures to the S&P 500, where the downside protection level, upside growth potential and outcome period can all be known, prior to investing," said Innovator CEO Bruce Bond.
After yanking $719.9 million from a technology fund in May, investors poured $1.78 billion in one day to another fund in the sector.
The exploding popularity of quants has created a gold rush for fund developers.
A tweak in accounting guidelines the firm helped to modify is expected to make the funds cheaper and easier to own.
The ETF will invest all of its assets in flexible exchange options on the S&P 500 that are customizable and guaranteed for settlement, the firm said.
Bitwise to welcome public cryptocurrency ETF
Bitwise Asset Management has filed registration with the SEC for Bitwise Hold 10 Cryptocurrency Index Fund, a publicly-offered cryptocurrency ETF that will join its privately offered fund, the firm said.
The new fund, which has a $25,000 investment minimum and 2.5% expense ratio, will track returns of a Bitwise market-cap-weighted index of 10 cryptocurrencies, Bitwise said. The index uses a five-year-diluted market cap to address challenges within the cryptocurrency space, which includes changing supply, liquidity and custody limitations, the firm said.
New FANG notes allow investors to make tech predictions
REX Shares listed three derivatives based ETNs that enable investors to go long or short the NYSE FANG+ Index, which includes Facebook, Amazon, Apple, Netflix and Google's parent Alphabet, according to Bloomberg News.
The funds will join other notes that already track the index, according to Bloomberg News. They will charge $9.50 for every $1,000 invested.
"Late-stage pre-IPO technology companies have become their own asset class, growing from $100 billion to $490 billion over the past three years," said Swarm CEO Philipp Pieper.
Blockchain comes to private equity at Andra Capital
Andra Capital is partnering with private equity blockchain provider Swarm to offer Silicon Valley Coin on its platform, the firm said.
The partnership, according to the firm, aims to add individual private companies available to its platform, such as Airbnb and Lyft.
Two new team members join RBC's equity investment team
RBC announced that Nidhi Chadda and Andrew Topps will join the U.S. equity team as portfolio manager and senior equity analyst, respectively.
Previously, Chadda served as vice president and general research analyst at Fred Alger Management. Topps was a senior research analyst at Holland Capital.
The two will both provide research to Chicago-based RBC's equity investment team, while Chadda will additionally be involved in portfolio management, while Topps is tasked with analysis.
"These additions will complement the demonstrated strengths of our existing team and we are excited to have them on board," said Mike Lee, CEO of RBC.
BlueMountain adds two, expects to improve healthcare strategy
Ameya Agge and Matt Jameson recently joined BlueMountain Capital Management in order to evaluate and execute private investments related to health care, the firm said.
"Many healthcare sectors are beginning to go through substantial transformation that will dynamically evolve over the next decade, thus increasing the need for nontraditional capital providers," said Andrew Feldstein, co-founder and chief investment officer of BlueMountain.
Prior to the new appointments, Agge was at Apax Partners, where he specialized in private health care investments in the U.S. and Europe.
Jameson was previously a managing director and co-head of private equity at Highland Capital Management.
Both the new hires will report to Jim Pieri, head of private healthcare at BlueMountain.
BMO appoints head of global consultant relations
BMO Global Asset Management announced the appointment of Anne Coupe for the newly crafted position as head of global consultant relations. Coupe is coming from UBS, where she served as head of consultant relations.
Tasked with deepening nvestment consultant relationships, Coupe is expected to help BMO evolve its global business.
"We have developed a strong foundation with consultants across the globe, and Anne's appointment is a further indication of the importance of the global institutional market to our growth aspirations," said David Logan, global head of distribution at BMO. Coupe will be based in Chicago and report to Logan.
Franklin names new portfolio manager
Franklin Templeton Investments announced the addition of Portfolio Manager Andrew Ness to its emerging markets equity team.
Ness was previously a senior member of the emerging markets equity team at Martin Curie. He will be based in Edinburgh, Scotland and report to the Franklin Templeton emerging marketing team's CIO, Manraj Sekhon.
"Andrew is a seasoned emerging markets portfolio manager with a long-term track record of outperformance, and we are very excited to have someone of his caliber and experience joining our team," Sekhon said in a statement.