Investment Product and Service Launches

Lincoln Financial Creates Personalized Target-Date Portfolios; Aon Hewitt-Managed Pooled Funds Claim Compliance with GIPS; Broadridge Financial Increases Data and Analytics Team; and more.

Lincoln Financial Group has launched a new series of target-date portfolios for employer-sponsored retirement plans called YourPath portfolios. These target-date portfolios, which utilize investments offered by American Funds, American Century Investments, BlackRock and State Street Global Advisors, will be managed along multiple risk-based paths to support a more personalized investment approach based upon financial circumstances and risk tolerance. YourPath portfolios can help participants achieve their retirement goals by using flexible and tailored strategies to reduce volatility, Lincoln says.

“Unlike standard target-date funds driven by retirement age, Lincoln Financial’s YourPath portfolios are a more customized solution,” says Ralph Ferraro, senior vice president, head of Product for the company’s Retirement Plan Services business. “Our solution is tailored to meet plan participants’ needs based on where they are in the retirement cycle and their particular risk profile. Working with some of the most prestigious investment managers enables us to tap the best investment strategies, which are then joined with the strength of Lincoln’s stable value product.”

YourPath portfolios will offer an active, passive or hybrid portfolio investment strategy with a stable value asset class to help reduce market volatility. Morningstar Investment Management LLC will provide the glide path, portfolio construction and ongoing management for each of the portfolio strategies, delivering fiduciary support as a 3(38) investment manager under the Employee Retirement Income Security Act (ERISA).

Aon Hewitt-Managed Pooled Funds Claim Compliance with GIPS

Proprietary pooled funds managed under full discretion by Aon Hewitt Investment Consulting (AHIC)—also known as “Aon-GIPS Firm”—have claimed compliance with the Global Investment Performance Standards (GIPS) and have been independently verified by ACA Performance Services for the period of July 1, 2010, through December 31, 2017. 

GIPS is known as a set of voluntary, standardized, industry-wide ethical principles that guide investment firms on how to calculate and present their investment performance to prospective clients. Many asset owners are asking investment managers to comply with the GIPS standards. 

AHIC is a Securities and Exchange Commission (SEC)-registered investment adviser providing outsourced chief investment officer (OCIO) services on a fully discretionary basis to institutional clients. For the purposes of compliance with the GIPS standards, the GIPS Firm (Aon-GIPS Firm) is defined as all pooled funds managed centrally and internally by the Delegated practice as part of the above-mentioned SEC-registered adviser.

Broadridge Financial Increases Data and Analytics Team

Broadridge Financial Solutions, Inc. has hired Matt Schiffman, Tim Kresl and Alex Golub-Sass, founders of Atom Analytics, to join Broadridge’s Data and Analytics business.

The addition of the Atom Analytics team is the latest development in a series of Broadridge expansions. In the last year, Broadridge has acquired global institutional data and intelligence provider Spence Johnson, and specialist European fund market and research firm MackayWilliams.

“Adding Matt, Tim and Alex enables Broadridge to extend the value of our analytics solutions, help clients plan for the changes in fund distribution and be ready for what’s next,” says Dan Cwenar, head of Asset Management Data and Analytics, Broadridge. “Using data and insights to efficiently and effectively deepen relationships with key customers, including advisers and individual investors is a key differentiator for asset managers.”

“We are delighted to be part of Broadridge. This affords us the opportunity to leverage Broadridge’s extremely robust distribution data and analytics solutions to inform adviser segmentation, adviser journey mapping and brand enhancement,” says Tim Kresl, founding partner, Atom Analytics. “We believe the addition of the Atom Analytics team to Broadridge will provide clients with a fully integrated data and insights solution to help enhance distribution effectiveness.”

Vanguard Launches Global Credit Bond Fund

Vanguard has filed a preliminary registration statement with the Securities and Exchange Commission (SEC) for Vanguard Global Credit Bond Fund. The new actively managed fund, expected to launch in November, is said to provide investors with diversified, predominately investment-grade exposure to the U.S. and international credit markets.

“Our clients are increasingly looking to reduce their home bias and harness the return potential and diversification benefits offered by the international equity and fixed income markets,” says John Hollyer, global head of Vanguard Fixed Income Group. “The new Global Credit Bond Fund’s wide range of security selection opportunities and regional and sector exposures, combined with the flexibility of active management, will make it an attractive core or satellite portfolio holding.”

According to Vanguard, the fund will invest in both corporate and non-corporate obligations, and will exclude government-guaranteed issues. Most of the non-U.S. portion of the portfolio will be hedged to the U.S. dollar, enabling investors to pursue a global credit premium without adding currency risk.

The fund’s adviser will focus on identifying relative value across multiple countries, yields, currencies, credit ratings, and cost bases, says Vanguard.  Security selection, sector allocation, and interest rate views will factor into portfolio decisions. A majority of the fund will be invested in U.S. securities, with the remainder in non-U.S. securities, representing both developed and emerging markets.