Investment Product and Service Launches

Fi360 acquires stable value research from Blue Prairie Group; Fidelity Investments releases model portfolios using ETFs; and Legg Mason to close three ETFs in March. 

Art by Jackson Epstein

Art by Jackson Epstein

Fi360 Acquires Stable Value Research from Blue Prairie Group

Fi360 has completed an agreement with Blue Prairie Group to acquire its stable value fund quantitative research and database. Effective immediately, all data archives will be transferred to Fi360, and all future data will be available through Fi360’s independent platform. 

The acquired data is derived from the nation’s stable value funds from over 35 fund managers and represents more than $450 billion in assets. Fi360 will maintain the collection, management and analysis of the data, making the reports available to advisers, broker-dealers and institutions through its Stable Value Navigator product. The data and associated analysis provides a comprehensive overview of stable value as an asset class and facilitates proper due diligence among financial professionals. 

Fi360’s Stable Value Navigator provides advisers with data and insight on stable value funds along with the ability to compare products. The tool was added to Fi360’s overall suite of offerings following the firm’s June 2018 acquisition of the Center for Fiduciary Management (CFFM), which maintained a long-standing partnership with Blue Prairie Group to provide research and analytics for users. As a result of this transaction, the research and data included within Stable Value Navigator will now be managed entirely by Fi360. 

Fidelity Investments Releases Model Portfolios Using ETFs

Fidelity Investments has launched the Fidelity Bond Income Model Portfolio and Fidelity Multi-Asset Income Model Portfolio, the first models offered by Fidelity to include exchange-traded funds (ETFs), along with active and passive mutual funds.

The new models aim to generate a high level of income while focusing on managing risk through fixed income and multi-asset class investing. They expand upon Fidelity’s existing model portfolios launched in 2018, which offer total return solutions within specific levels of risk.

“We’re always looking for new ways to help advisers serve their clients. These income models are designed to address an even broader range of clients’ investment needs,” says Matt Goulet, senior vice president, Fidelity Institutional Asset Management. 

The Fidelity Bond Income Model Portfolio uses fixed income, investing primarily in debt securities, allocating across four general investment categories: high yield securities, preferred stock, U.S. Government, and emerging market securities. The Fidelity Multi-Asset Income Model Portfolio uses different asset classes for additional diversification and total return benefits. It invests primarily in income-producing securities, allocating among equity and debt securities, including common and preferred stock, U.S. Government debt, high yield debt securities, emerging market debt, and floating rate securities.

Fidelity’s other model portfolios include the Fidelity Target Allocation Model Portfolios, which seek to combine Fidelity active and passive mutual funds to enhance potential for excess return, and the Fidelity Target Allocation Index-Focused Model Portfolios, primarily invested in Fidelity index mutual funds.

Legg Mason to Close Three ETFs in March

Legg Mason, Inc. has decided to close and liquidate a series of exchange-traded funds (ETFs) based on an ongoing review of its product lineup. Proceeds of the liquidation are currently expected to be sent to shareholders of the funds on or about March 22.

Effective as of March 6, the Legg Mason Developed ex-US Diversified Core ETF, Legg Mason Emerging Markets Diversified Core ETF and Legg Mason US Diversified Core ETF will no longer accept orders for the purchase of creation units. It is expected that the funds will cease trading on NASDAQ on or about March 15, and subsequently will be delisted, according to Legg Mason.

“As with all of our investment solutions, we are always seeking to deliver on investor needs,” says Rick Genoni, Legg Mason’s head of ETF product management. “We are always evaluating our product lineup to ensure it is relevant to investor demand. In this case, we have determined a timely liquidation is the best option. We are pleased with the performance and the investor reception to other ETFs we offer.”

In connection with the liquidations, any shares of a fund outstanding on the liquidation date will be automatically redeemed. After payment (or setting aside for later payment) of the fund’s obligations, shareholders who remain in the fund until the liquidation date will receive liquidation distribution(s) based on the current aggregate net asset value of the shares of the fund that such shareholder then holds. The funds may or may not, depending upon each fund’s circumstances, pay one or more dividends or other distributions prior to or along with the redemption payments.

Shareholders may sell their shares of a fund on NASDAQ until the market close on the date a fund ceases trading and may incur customary transaction fees from their broker-dealer in connection with such sales.