Investment Product and Service Launches

PGIM Rolls Out First of Set of ETF Expansion; Invesco Acquires MassMutual Asset Management Affiliate; and Horace Mann and SWBC to Offer Investment Solutions for Educators.

PGIM Rolls Out First of Set of ETF Expansion

PGIM Investments has launched the first of four actively managed equity exchange-traded funds (ETFs) that it plans to roll out in 2018, expanding the platform from the two actively managed fixed income ETFs launched earlier this year. Sub-advised by QMA, the quantitative equity and global multi-asset solutions manager of PGIM, the PGIM QMA Strategic Alpha Large-Cap Core ETF (NYSE Arca: PQLC) seeks long-term growth of capital by investing primarily in large-cap stocks.

“Adding equity to our mix of ETF strategies gives investors a cost-effective way to access the equity markets while obtaining the potential benefits of active management,” says Stuart Parker, president and CEO of PGIM Investments. “Introducing these funds—managed by one of the industry’s pioneering quantitative managers—is a natural evolution in our effort to create new investment vehicles that meet investors’ evolving needs.”

Priced at 0.17%, PQLC is approximately half the cost of the average passively managed ETF in the large blend category despite the active approach which targets higher returns, the company says. By the end of 2018, PGIM Investments plans to offer three more actively managed equity ETFs—the PGIM QMA Strategic Alpha Small-Cap Growth ETF (NYSE Arca: PQSG), the PGIM QMA Strategic Alpha Small-Cap Value ETF (NYSE Arca: PQSV), and the PGIM QMA Strategic Alpha International Equity ETF (NYSE Arca: PQIN).

Sub-advised by QMA, these four Strategic Alpha ETFs will seek to provide investors with access to broad multifactor equity exposure while capitalizing on investor bias.

“With more than 40 years of systematic active management expertise, we’ve created an investment product that delivers our best institutional research on multifactor investing to the ETF market,” says QMA Chairman and CEO Andrew Dyson. “Our research shows that investors frequently overpay for stocks that have a low probability of outsized returns or may provide lower risk. We’ve found a way to help protect investors from such behavioral biases.”

Invesco Acquires MassMutual Asset Management Affiliate

Invesco Ltd. and MassMutual have entered into a definitive agreement, whereby Invesco will acquire MassMutual asset management affiliate OppenheimerFunds, Inc.

In turn, MassMutual and the OppenheimerFunds employee shareholders will receive a combination of common and preferred equity consideration, and MassMutual will become a significant shareholder in Invesco, with an approximate 15.5% stake.

“The combination with OppenheimerFunds and the strategic partnership with MassMutual will meaningfully enhance our ability to meet client needs, accelerate growth and strengthen our business over the long term,” says Martin L. Flanagan, president and CEO of Invesco. “This is a compelling, highly strategic and accretive transaction for Invesco that will help us achieve a number of objectives: enhance our leadership in the U.S. and global markets, deliver the outcomes clients seek, broaden our relevance among top clients, deliver strong financial results and continue attracting the best talent in the industry.”

Horace Mann and SWBC to Offer Investment Solutions for Educators

Horace Mann, a company focusing on helping educators achieve their financial goals, has partnered with SWBC, a diversified financial services company, to provide school districts with additional investment solutions for educators. 

SWBC’s investment solutions will be implemented on Horace Mann’s open architecture mutual fund platform, Retirement Advantage.

In addition, SWBC includes an Environment, Social and Governmental (ESG) investment lineup that Horace Mann will offer on its Retirement Advantage platform.

“Horace Mann knows educators are concerned about the type of investments they make. Offering an ESG lineup gives school business officials the option to let their educators align their investments with their beliefs,” says Bret Benham, executive vice president of Life & Retirement at Horace Mann. 

The business of selecting and monitoring plan investments is a complicated process. The partnership between Horace Mann and SWBC will make it easier for school business officials to take care of their employees, and assist them in saving for their futures.