Investment Products and Service Launches

PMC Providing Long/Short Equity Strategies; Vanguard Establishes Total Corporate Bond ETF; and Swell Investing Launches Impact IRA.

PMC Providing Long/Short Equity Strategies

Envestnet’s portfolio management consulting group PMC is now providing advisers with access to long/short equity strategies available on the Envestnet platform through separately managed accounts (SMAs).

PMC seeks to offer access to multiple alpha-generating long/short equity strategies spanning market capitalizations, geographic regions, market sectors, and investment styles through SMAs, and is actively looking to build out its lineup.

Envestnet | PMC currently offers three long/short equity strategies as SMAs: AlphaHedge, HarborWalk, AlphaHedge Infinitas and AlphaHedge ISF. 

Envestnet | PMC notes all investment strategies are held in brokerage accounts registered under the name of the investor, and all securities are directly owned and transparent to the investor. PMC says this transparency allows advisers to perform extensive analytics on a strategy at any time. Investors are free to increase or reduce the capital allocated to their managed accounts at any time. 

Most of the strategies require a minimum investment of $250,000.

“With market valuations reaching all-time highs, the timing couldn’t be better for bringing institutional-quality, thoroughly vetted hedge fund strategies to financial advisers—at lower minimums and within products that are ideally designed for their clients,” says Bill Crager, president of Envestnet. “Access to boutique managers with strong alpha-generating characteristics enables the Envestnet | PMC team to craft portfolios that have greater potential to deliver alpha-driven, risk-managed returns.”

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NEXT: Vanguard Establishes Total Corporate Bond ETF

Vanguard Establishes Total Corporate Bond ETF

Vanguard has filed a preliminary registration statement with the Securities and Exchange Commission (SEC) for a new index portfolio. The Vanguard Total Corporate Bond Exchange Traded Fund (ETF) is expected to launch in the fourth quarter of 2017 and will offer investors access to the entire U.S. investment-grade corporate bond market through a single fund.

“The new offering complements our existing lineup of total market funds and will provide investors with low-cost, broadly diversified exposure to the U.S. investment-grade corporate bond market,” says John Hollyer, global head of Vanguard Fixed Income Group.

Vanguard further describes the new ETF: “The fund will be structured as an ETF of ETFs, investing directly in three existing, low-cost ETFs: Vanguard Short-Term Corporate Bond ETF (VCSH), Vanguard Intermediate-Term Corporate Bond ETF (VCIT), and Vanguard Long-Term Corporate Bond ETF (VCLT). This approach enables the Total Corporate Bond ETF to achieve immediate scale by using existing exposure from the underlying ETFs, and it is expected to result in tighter bid/ask spreads and lower operating expenses than investing directly in the benchmark’s constituents.”

Vanguard estimates an expense ratio of 0.07% upon the ETF’s launch. Through its fixed income group, Vanguard will serve as the investment adviser to the ETF.

NEXT: Swell Investing Launches Impact IRA

Swell Investing Launches Impact IRA

Swell Investing has updated its platform which now allows investors to open individual retirement accounts (IRAs) or rollover existing 401(k) assets into IRAs. In addition to this move, the firm has also launched an impact investing focused IRA with an investment minimum of $50.

Swell says it currently offers six portfolios focused on addressing social and environmental challenges including “green technology,” renewable energy, zero waste and disease eradication. These portfolios provide the opportunity to invest in more than 300 companies.

Swell screens these companies using a rules-based approach that considers data points such as each company's MSCI Environmental, Social and Governance (ESG) rating and its alignment with the United Nation's Sustainable Development Goals.

"Overwhelmingly, we heard that investors want to shift money they are already investing for the future into an impact option,” says Dave Fanger, CEO of Swell Investing. “That's why we set our sights on an IRA and rollover option."

NEXT: Capstone Financial Launches New Crossmark Global Investments Brand

Capstone Financial Launches New Crossmark Global Investments Brand

Independent asset management firm Capstone Financial Services has adopted Crossmark Global Investments (Crossmark) as its new brand name.

"We are excited to launch the Crossmark brand, which embodies our long-standing commitment to responsible investing and differentiates our philosophy in the investment marketplace," says the firm's President and CEO Michael Kern. "At Crossmark, we believe strongly that investment portfolios can align with clients' personal values without sacrificing performance."

The investment team specializes in delivering screened solutions for a variety of responsible investing themes.