IndexIQ Offers Momentum-Based Fixed Income ETF

Rye Brook, N.Y.-based IndexIQ has introduced what it hails as the first ETFs to use a momentum approach to fixed-income markets.

In May, the firm launched the IQ Enhanced Core Bond U.S. ETF (AGGE) and the IQ Enhanced Core Plus Bond U.S. ETF (AGGP), both tracking smart beta-style indexes.

“Bringing a time-proven momentum investing approach to the fixed-income space is something that we have researched for some time,” said Adam Patti, IndexIQ’s CEO, in a statement. “We’re pleased for AGGE and AGGP, the first entries by IndexIQ in the fixed-income category, to deliver the opportunity for investors to build smarter portfolios by bringing the benefits of smart beta to fixed income.”

AGGE invests in sectors across the U.S. investment-grade fixed-income market, including Treasurys, investment-grade corporate bonds and investment-grade mortgage-backed securities, weighting each of the sectors based on their total return momentum.

AGGP uses a similar investment approach, but can also get exposure to high-yield debt and to the U.S. dollar-denominated debt of emerging market issuers before employing a similar weighting strategy that overweights high-momentum sectors and underweights low-momentum sectors.

“Emerging market debt has been a strong performer to start 2016, driven in large part by ongoing dovish Federal Reserve policies, improving emerging market fundamentals and a suddenly weakening dollar,” said Salvatore Bruno, CIO of IndexIQ.

Both ETFs will trade on the New York Stock Exchange. IndexIQ is a subsidiary of New York Life Investment Management Holdings.

 

VanEck Introduces Actively Managed Fund of ETFs

New York-based VanEck announced the launch of the VanEck NDR Managed Allocation Fund. Venice, Fla.-based Ned Davis Research will manage the new fund, which will be a fund of funds.

The Managed Allocation Fund will seek capital appreciation by allocation to ETFs that invest in domestic and foreign equities, U.S. debt securities, cash and cash equivalents.

VanEck argues that because passive investing strategies are typically fully invested at all times, they’re hampered by immobility during market downturns. The firm intends the actively managed fund to help investors with their core asset allocation choices, particularly when related to timing.

 

Lincoln Financial Creates Streamlined Insurance Offerings

Radnor, Pa.-based Lincoln Financial Group has created a series of life insurance products to help agents and representatives streamline their processes and expand their client base.

“Lincoln TermAccel” is a level term insurance product designed for younger clients that allows applicants to bypass underwriting labs through the use of algorithms and automated underwriting, featuring a fully electronic transaction process from application to issuance.

LincXpress is a series of processes designed to make life insurance underwriting more efficient, including a telephone application process, lab-free underwriting opportunities and expanded e-delivery policy options.

Ideally, both launches will make the purchase of life insurance less invasive, cheaper and easier for clients and advisors.

 

Orion Adds Advisor Text Alert Platform

Omaha, Neb.-based Orion Advisor Services has introduced a text alert platform for advisors.

The Orion Notifications application will allow advisors to send portfolio updates and schedule meetings with their clients via customizable text alerts. The app can also be used for personal messaging, balance alerts, performance updates and reminders for required minimum distributions.

The application was designed with compliance in mind, with customizable performance disclosure information that can be sent along with texts containing performance returns.

Advisors can access the new application through Orion Connect, and clients can subscribe to updates through the Orion Client Portal.

 

Morningstar Rolls Out Account Aggregation Portal

Chicago-based Morningstar has released “ByAllAccounts,” a personal financial management portal for advisors. The portal will include drag-and-drop functionality that looks at an investor’s total wealth, balance sheet, cash flows and asset allocation.

Advisors will be able to customize ByAll-
Accounts with their own branding.

ByAllAccounts is a mobile-ready, customizable dashboard that allows advisors to aggregate all of an investor’s accounts. The dashboard will update daily using data from approximately 15,000 sources, including liabilities like loans and credit card debt, so an advisor can fully understand a client’s net worth. The portal will offer custom report generation, a document vault and investor alerts.

 

Voya Launches Fund Family Focused TAMP

Windsor, Conn.-based Voya Financial Advisors has launched Voya Wealth Portfolios, a new turnkey asset management program.

Available on Voya’s WealthSolutions platform, the new product offers advisors access to leading fund families. These can be used to construct investment portfolios focused on matching asset allocations to a client’s personal needs and risk tolerance.

Wealth Portfolios includes four series of portfolios each fully invested in a specific mutual fund company. Each series contains five risk-customized model options that advisors can tailor to clients’ needs. Advisors using the new turnkey offering can access sub-advisory services from FDx Advisors.