Fidelity Adds Sustainable And Muni Mutual Funds
Fidelity Investments announced the launch of two sustainable index funds and a defined maturity fixed-income product.
The sustainable funds, the Fidelity U.S. Sustainability Index Fund (FENSX) and the Fidelity International Sustainability Index Fund (FNIYX) will track market-cap-weighted ESG indexes created by MSCI.
The indexes use an inclusive methodology that screens companies for high ESG ratings based on MSCI’s research. MSCI also screens out companies involved in alcohol, gambling, tobacco, weapons and nuclear power.
Retail shares of FENSX carry total net expenses of 21 basis points, while retail shares of FNIYX carry 30 basis points in total net expenses.
Fidelity also launched the Fidelity Municipal Income 2025 Fund, an addition to the firm’s defined maturity funds lineup. Defined maturity funds offer investors tax-exempt income over specific periods of time.
The Municipal Income 2025 fund will invest at least 80% of its assets in investment-grade municipal securities. The company will actively manage the fund.
Fidelity says defined maturity products are appropriate for investors who want to save for a particular goal, reduce the risk of rising interest rates, or supplement an individual bond portfolio. The firm currently offers funds with maturity years of 2017, 2019, 2021 and 2023. Because the funds have “staggered” maturity dates, they can be used in a manner similar to “ladders” of individual securities, according to Fidelity. At each fund’s target end date, it distributes assets to current shareholders, then allows them to reinvest at current interest rates.
The retail shares of the new municipal bond fund carry an expense ratio of 40 basis points.
AssetMark Launches Parametric Strategies On Platform
AssetMark has announced that it is launching a new strategy in coordination with Eaton Vance affiliate Parametric.
Parametric Custom Portfolios employ diversification, risk and tax management features to deliver custom-built passive investment portfolios for high-net-worth investors. The new portfolios will combine passive, tax-managed equity exposure with bond ladders in a single account.
The custom portfolios will also include tax-loss harvesting, capital-gains deferral and tax-efficient transition strategies.
AssetMark says that the models are well-suited for advisors who are using ETF models but interested in greater customization and efficiency.
Parametric will handle the tax-management side of the strategy, while Eaton Vance will serve as a fixed-income subadvisor.
BlackRock Takes iRetire To Decumulation Phase
BlackRock is extending its iRetire platform to help advisors manage the decumulation phase of client retirements.
The platform now delivers a comprehensive framework for accumulation and decumulation for estimated sustainable retirement income, enabling advisors to create relatable conversations with clients and develop solutions tailored to each client’s circumstances.
Since iRetire was launched in 2015, it has provided advisors with institutional data, risk engines and portfolio construction tools for planning during the accumulation phase of retirement.
With the decumulation tools, iRetire can help advisors illustrate the impact of spending, saving and investment decisions on clients’ retirement income.
Altegris Alters Managed Futures Strategy
Altegris has announced enhancements to its Altegris Managed Futures Strategy Fund.
In an effort to improve transparency, increase tax efficiency and reduce costs, Altegris has transferred the fund to an allocation model with investment strategies pursued via direct allocation to managers.
The fund, whose ticker is MFTAX, is an actively managed mutual fund investing in financial and commodity future markets in order to achieve absolute returns. Altegris will now allocate using a simpler, more streamlined process using multiple managers to trade directly for the fund via sub-advisory and trading advisory arrangements.
While the change has no impact on management fees, Altegris expects that embedded costs and operating expenses will be reduced under the new arrangement.
Allianz Launches Two New Variable Annuities
Allianz Life Insurance Company of North America announced the launch of two new variable annuity products.
The Allianz Index Advantage ADV Variable Annuity and the Allianz Index Advantage NF Variable Annuity are designed to provide both performance and protection. The ADV annuity is exclusively designed to fit within a fee-based portfolio, while the NF annuity is designed with no annual product fee on the index strategies, and this creates a new option for fee-sensitive clients.
Both new annuities combine variable options with three index options, offering a balance between protection and performance, tax-deferred growth opportunities and a built-in death benefit.