Schwab Aims Low With New Target Date Fund Suite

Charles Schwab Investment Management has launched a third suite of target-date funds using ETFs to create a retirement glide path for investors.

The Schwab Target Index Funds come with an industry-low expense fee of 8 basis points and no minimum investment requirements when the funds are used by retirement plan participants.

“We wanted to complete the suite of solutions that we offer with a mutual fund option at a low cost for investors,” says Jake Gilliam, senior multi-asset-class portfolio specialist at Schwab. “By using ETFs, we’re able to offer a lower cost in the mutual fund format and funds that can be used outside of ERISA qualified plans.”

Unlike Schwab’s previous lineups of collective trust target-date funds, the Target Index Funds will also be available in non-retirement plan accounts. Outside retirement accounts, the expense ratio will be 13 basis points and there will be $100 minimum investments.

Schwab’s target-date funds follow an allocation glide path that becomes more conservative over time, starting at around 95% equity and 5% fixed income at the longest range, and reaching its most conservative allocation 20 years after the target date at approximately 25% equity and 75% fixed income.
 

Franklin Templeton Launching Global Macro Fund Of Funds

Franklin Templeton Investments has introduced the multi-manager Franklin K2 Global Macro Opportunities Fund.

The fund invests in global macro hedge strategies with flexible mandates that go beyond long-only approaches, offering investors access to a range of hedge strategy manager subadvisors in a single diversified portfolio.

The fund’s goal is to provide capital appreciation throughout a full market cycle by allocating to hedge strategy managers selected through a rigorous, proprietary due diligence process. The strategies employed by the initial managers may include discretionary and systematic macro strategies.

The new fund fills out Franklin Templeton’s suite of liquid alternative offerings established with the acquisition of K2 Advisors in 2012.

 

Responsibility Goes Passive With New Calvert Index

Calvert Investments has launched the Calvert Energy Research Index, the seventh addition to its suite of responsible investing indexes.

The new index focuses on companies that either manage energy use in a sustainable manner or are actively engaged in facilitating the transition to a more sustainable economy through greenhouse emission reduction and expanded renewable energy use.

To be included in the index, companies must also satisfy minimum market capitalization and liquidity thresholds and meet Calvert’s responsible investment principles. The index will be tracked by the Calvert Global Energy Solutions Fund, which is moving from an actively managed approach to a passive strategy. 

 

American Growth Fund Rolls Out Cannabis Mutual Fund

American Growth Fund has launched the first wholly cannabis-focused mutual fund.

The American Growth Fund, Series Two primarily uses a growth style of investing with a portfolio that is made up of common stock and convertible securities involved in at least some way in the legal cannabis business.

American Growth Funds believes cannabis businesses have the potential to grow faster than market indexes, but the firm blends its approach by also seeking securities that are considered undervalued or out of favor that may still increase in price over time.

 

Annexus Announces New Merrill Lynch-Powered FIAs

Annexus has announced a new suite of fixed indexed annuities.

The BCA Elevate suite of annuities offers investors exclusive access to the Merrill Lynch RPM Index, which leverages positive momentum from six global asset classes including equities, fixed income and real assets.

According to Annexus, over the past 14 years the RPM Index would have produced 42% higher compounded annual returns than the S&P 500 with less than one-third of the volatility. The index was established on March 1, 2016.

The BCA Elevate suite is issued by the Athene Annuity and Life Company of West Des Moines, Iowa.

 

Nuveen Introduces Streamlined Alts Investing Tool

Nuveen is launching a new online platform that will facilitate advisor access to alternative investments. 

Nuveen’s new offering puts client on-boarding, account opening and investing in alternatives into a single platform. Advisors can monitor investment activity within accounts, access documentation and disseminate educational and marketing materials through a central dashboard.

The tool provides a secure, compliant investment process backed up by full-service support from Nuveen’s client service team. Created in partnership with New York-based Artivest, the new digital platform will be available to RIAs, banks and family offices serving the high-net-worth market segment.