Voya Financial announced it will offer a new “advisory-based
solution to its diverse mutual fund portfolio,” dubbed the Voya Select
Advantage Advisory IRA.
The individual retirement account (IRA) solution is
structured as a mutual fund custodial account. One of its key features, Voya
says, includes its breadth of choice: “Customers can work with their adviser to
select from a diverse mix of 90 individual mutual funds. This provides access
to well-known fund managers and the opportunity to select from a diversified
mix of management styles.”
Additionally, advisers are “free to change their client’s
investment options at any time,” with no transaction charges. At the same time,
Voya says it is offering a lower cost structure compared to other IRA platforms.
A commissioned-based version of Voya’s Select Advantage IRA
is currently offered by the firm. In an effort to proactively adapt to the Department of Labor’s (DOL) new fiduciary rule, Voya designed an advisory version to give advisers
more choice and options when working with their clients under the new fiduciary
paradigm.
“This is the first time Voya’s annuities and individual life
businesses have introduced an advisory model to its mutual fund portfolio,” the
firm says. “In addition to other firms, the company’s retail broker-dealer and
registered investment adviser, Voya Financial Advisors, Inc., will offer this
platform to its national network of independent financial advisers.”
Working through a financial adviser, individuals can open an
account with as little as $5,000 or roll
over funds from an existing 401(k) or IRA. Dollar-cost averaging and
auto-rebalancing features are also available at no additional cost, along with quarterly
statements and online tools to allow customers to access their accounts on
demand.
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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.”
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.