Genworth Financial Wealth Management announced today that it is expanding its investment platform for independent financial advisors who have been struggling the past two years with client retention and finding income in a low-yield and low-return environment.
"Investors are losing hope daily. Some clients of financial advisors are even wanting out of the market and requesting to withdraw their money. The expanded platform is our attempt to assist advisors in helping their clients stay the course while finding income," said Genworth Wealth Management CEO Gurinder Ahluwalia today during a press conference at the Waldorf Astoria Hotel in New York.
Portfolio strategists joining the platform are BlackRock Financial Management, Doubleline Capital, F-Squared Investments and Forward Management. Existing strategists adding new options include Altegris Advisors, J.P. Morgan Asset Management and New Frontier Advisors.
"New platform options give advisors the flexibility to create portfolios that can provide income and risk management according to their client's needs," said Michael Abelson, Genworth's senior vice president of investment and product management. "This will be especially helpful for advisors working with clients who have moved their funds to the sidelines because of today's market volatility."
The new objectives that advisors can avail themselves of are capital appreciation through F-Squared, low volatility portfolio options with Doubleline, multi-asset income through a combination of equities, REITs and bonds invested by Blackrock, JP Morgan, New Frontier and Forward, as well as alternative investment strategies through mutual funds that invest in hedge funds, long-short equities and managed futures provided by Altegris.
"Despite the low-yield environment, you can still get income in preferred stock. That's what multi-asset allocation is bringing to the table. We're blending 35 mutual funds into one strategy with three different allocations to accommodate various levels of risk tolerance that Genworth financial advisors encounter," said Nathan Rowader, Forward's director of investments.
Although advisors are often encouraged to seek income distribution in areas other than equities, Genworth's Ahluwalia warns against concentrated risk.
"Any concentrated position, whether it be in REITs or bonds, is toxic. Investors still need to be diversified," Ahluwalia said.
Genworth's new options give advisors more choices to to create income and yield by mixing asset allocations to match their client's goals and risk tolerance.
"These new investment solutions enhance the advisor's ability to meet their clients' needs, regardless of life stage," Ahluwalia said.
As baby boomers retire, more and more will be managing longer life expectancy, limited affordable healthcare options as they age and providing an inheritance to heirs, according to Genworth.
"The expanded platform we're offering is increasingly important as demographics shift, creating demand for income to meet everyday expenses in retirement," concluded Ahluwalia.