Investment Product and Service Launches

Broadridge Financial acquires portfolio management solutions provider; Putnam offers new SMAs and model portfolios; Pacific Global adds ETFs to complement flagship fund; and more.

Art by Jackson Epstein

Art by Jackson Epstein

Broadridge Financial Acquires Portfolio Management Solutions Provider

Broadridge Financial Solutions, Inc. has acquired ClearStructure Financial Technology, a global provider of portfolio management solutions for the private debt markets.

“ClearStructure’s component services enhance our existing multi-asset class, front-to-back office solution, providing our clients with a unique capability to access the public and private markets,” says Eric Bernstein, Broadridge’s head of asset management solutions. “This acquisition aligns to Broadridge’s strategy of providing a true cross-asset platform to enable asset management clients to have a single view into their entire book of business.”

“We’re delighted to join Broadridge and to offer expanded portfolio management technology to create optimum investment workflow efficiency for portfolio managers, investment analysts, risk professionals, and operations teams,” says ClearStructure CEO Scott Turley.  

Putnam Offers New SMAs and Model Portfolios

Putnam Investments has begun offering seven equity model-based separately managed accounts (SMAs) and is expected to have six multi-asset model portfolios available to the marketplace by year-end.

“The demand for strategies in the model delivery structure is rapidly increasing as advisers seek products that are fee-efficient and tailored to meet their clients’ individual preferences,” says Robert L. Reynolds, president and CEO, Putnam Investments. “We think it is important to offer our investment strategies through a host of different investment vehicles to allow maximum flexibility for advisers as they develop individualized portfolio solutions that help generate their clients’ desired investment results.”  

The recently launched model SMAs developed by Putnam include U.S. Large Cap Value Equity; U.S. Large Cap Growth Equity; U.S. Multi-Cap Core Equity; Sustainable Leaders Fund; Sustainable Fund; and International Durable Equity.  

In addition to offering SMAs, Putnam will also enter the multi-asset model portfolio space later this year with six offerings. The model portfolios will use a systematic investing approach and be composed of Putnam’s active mutual funds and third-party exchange-traded funds (ETFs). The portfolios largely will be benchmarked to custom multi-asset portfolio benchmarks.

Each model portfolio will have a different risk profile as a result of the split between equities and fixed income, with increasing levels of equities in increments of 20%. Active investments will represent approximately half of each portfolio. 

Putnam’s Multi-Asset Model Portfolio lineup will include Income (targeted 0% equity); Balanced Income: (targeted 20% equity); Conservative Growth: (targeted 40% equity); Balanced Growth: (targeted 60% equity); Growth (targeted 80% equity); Aggressive Growth (targeted 100% equity).

The portfolios will be managed by Putnam’s Global Asset Allocation team.

Pacific Global Adds ETFs to Complement Flagship Fund

Pacific Global ETFs has added two income-focused exchange-traded funds (ETFs) to its suite of actively managed, income-focused investment strategies.

The new funds, Pacific Global International Equity Income ETF (NYSE Arca: IDY) and Pacific Global Focused High Yield ETF (NYSE Arca: FJNK), are designed to complement Pacific Global ETFs’ flagship fund, Pacific Global US Equity Income ETF (NYSE: USDY).

“We’re excited about the launch of our income-focused ETFs that build on the more than 150-year legacy of Pacific Life,” says Anthony J. Dufault, managing director of Pacific Global ETFs. “We constructed our ETFs with a focus on addressing investors’ needs for income-producing strategies, which is especially important with today’s low interest rates.”

Federated Investors Reorganizes Investments of PNC Capital Advisors

Federated Investors, Inc. has acquired certain components of the PNC Capital Advisors LLC (PCA) investment management business. The transaction involved the reorganization of 18 PNC equity, fixed-income and liquidity mutual funds into 16 corresponding Federated mutual funds and the transition of a five-person Cleveland-based international equity portfolio management team from PCA to Federated. The acquisition also included a portion of PCA’s separate account and separately managed account businesses. 

The reorganization of $14.0 billion in assets comprised approximately $11.3 billion in liquidity assets, $2.3 billion in equity assets and $450 million in fixed-income assets. Each mutual fund reorganization was approved by PNC fund shareholders.

“This transaction builds upon Federated’s long-term relationship with PNC and provides the shareholders of the funds and other PNC customers access to Federated’s diverse range of investment strategies, proven performance and extensive customer service capabilities. Federated continues to seek alliance and acquisition opportunities in the U.S. and throughout the world,” says J. Christopher Donahue, president and chief executive officer of Federated Investors. “We also are pleased to offer the strong historical performance of the international funds to our customers as complements to our existing range of international equity options.”

The three fundamentally driven international equity funds that are now part of the Federated complex inherit the performance established by the Cleveland-based investment management team. Polaris Capital Management had served as sub-adviser to the value component of the PNC International Equity Fund and has been retained as sub-adviser for the Federated International Equity Fund.

More information on fund name changes can be found here.