Fidelity Expands Model Portfolio Suite
Fidelity Institutional, the Boston-based division of Fidelity Investments, has expanded its model portfolio suite with the addition of Fidelity Target Allocation Tax-Aware Model Portfolios, which include nine equity and fixed-income mixes, each versioned for I and Z share classes.
The model portfolios are now available through Fidelity’s managed account platform, Fidelity Managed Account Xchange (FMAX), and the Envestnet platform.
Using a blend of actively managed funds from Fidelity and exchange-traded funds (ETFs) from other asset managers, these new target allocation tax-aware model portfolios are designed to enhance total return through fund selection, while also helping reduce the impact of taxes on returns. They include equity to fixed-income mixes of 10/90; 20/80; 30/70; 40/60; 50/50; 60/40; 70/30; 85/15; and 100/0.
Fidelity is also introducing Fidelity Model Portfolios with separately managed accounts that include five equity and fixed income mixes of 20/80; 40/60; 60/40; 70/30; and 85/15, each versioned for I and Z share classes. These portfolios combine a blend of mutual funds, ETFs and separately managed accounts from Fidelity and other assets managers to provide enhanced risk-adjusted total return across the risk spectrum.
Fidelity is furthermore debuting the Fidelity Tax-Aware Model Portfolios with separately managed accounts, which includes five equity and fixed income mixes of 20/80; 40/60; 60/40; 70/30; and 85/15, each versioned for I and Z share classes. The model portfolios use a blend of mutual funds, ETFs and separately managed accounts from Fidelity and other asset managers, including municipal bond investments to help reduce the impact of taxes on returns.
The model portfolios are also integrated into the Wealthscape Modeling & Rebalancing tool, making it simpler for advisors to view, customize and allocate to the portfolios. The portfolios are available to broker-dealers, registered investment advisors, banks, and insurance companies. For more information, visit go.fidelity.com/models.
Transamerica, FuturePlan And Natixis Unveil ESG Group Plan Solution
Transamerica, a financial services company headquartered in Cedar Rapids, Iowa, has partnered with FuturePlan by Ascensus, (a third-party administrator), Natixis Investment Managers and LeafHouse Financial Advisors to launch the first target-date fund series driven by environmental, social and governance investing principles.
The Sustainable Futures ESG Group Plan Solution makes retirement plan sponsorship easier for employers by reducing time-consuming administrative burdens and mitigating fiduciary risk.
The solution offers a broad spectrum of investment choices, including the industry’s first ESG-driven target-date series, Natixis Sustainable Future Funds, which launched in 2017.
The offering is open to both existing and startup 401(k) plans, and it provides guided onboarding and enrollment support, as well as ongoing service from a dedicated FuturePlan team with integration into Transamerica’s record-keeping system.
To learn more, employers and financial professionals should contact FuturePlan at (866) 929-2525 or by visiting [email protected].