Investment product and service launches
BNY Mellon Investment Management creates a custom target date generator
BNY Mellon Investment Management has extended access to its BNY Mellon Custom Target Date Builder (CTDB), with Voya Financial becoming the first registrar to support the solution.
“As we expand access to our CTDB offering, we are delighted that Voya, a leading record keeping company, is supporting this consultant solution,” said Andy Provencher, North America Distribution Manager, BNY Mellon Investment Management. “Voya’s platform is an excellent choice for our CTDB offering, as its open and user-friendly architecture platform enables retirement specialists to create personalized target date solutions at the plan level in an efficient and secure manner. measure for pension plans of all sizes. “
Target Date Fund (TDF) customization has been popular in the mega defined contribution (DC) market for years, according to the company, and the BNY Mellon CTDB solution now offers retirement advisors trajectory and career management. model, as well as the possibility of exploiting their own research and intellectual capital.
“At Voya, we continue to see client and advisor interest in our offerings, capabilities and resources, and we are delighted to be the first case manager to support CTBD,” said Jeff Cimini, vice – senior president, pension product management at Voya Financial. “We remain focused on delivering the products and programs that we know will support the finance professionals we work with to help their clients achieve their future goals. By using technologies already in place in our systems today, CTDB offers a new opportunity for advisors to implement their own strategies, thus helping to facilitate better retirement outcomes.
Hartford Funds Launches Commodity Focused ETF
Hartford Funds has launched its first commodity-focused exchange-traded fund (ETF), Hartford Schroders Commodity Strategy ETF, which will be sub-advised by Schroder Investment Management North America Inc. and Schroder Investment Management North America Ltd. total return over time by investing in a range of commodity-related instruments. The actively managed fund’s performance benchmark will be the Bloomberg Commodity Total Return Index.
“The Hartford Schroders Commodity Strategy ETF allows us to provide our clients with exposure to an alternative asset class that we believe is ripe for opportunities in the current market environment,” said Vernon Meyer, chief investment officer. investments at Hartford Funds. “This product once again demonstrates our commitment to providing our existing and potential clients with diversified and long-term investment opportunities that can help them achieve their investment goals.
The ETF will invest primarily in a range of commodity-related derivatives, such as futures and other commodity-related swaps, as well as cash or cash equivalents, including certificates of deposit, bonds Treasury, floating rate notes and corporate stocks. The fund will seek exposure to a range of commodity sectors from time to time including, but not limited to, the energy, agriculture and metals sectors. As the fund’s sub-advisor, Schroders will take fundamental, quantitative and technical sentiment into consideration when determining asset allocation to various commodities. The fund may also invest in structured notes, debt securities, convertible securities and foreign currencies.
The new fund is listed on the New York Stock Exchange ARCA, Inc. The portfolio management team consists of James Luke, Malcolm Melville and Dravasp Jhabvala, three dedicated investment professionals from the commodities team at Schroders with an average of 17 years of investment experience.
Northern Trust invests in Essentia Analytics
Northern Trust has entered into an agreement to acquire a stake in Essentia Analytics, Ltd.
Essentia Analytics is a behavioral analysis and consulting service provider that uses a cloud-based platform to combine historical data and behavioral science to identify and correct bias in investment performance.
The addition of Essentia’s behavioral analysis solutions is an extension of Northern Trust Whole Office, a strategy that facilitates client access to new technologies, services and solutions throughout the investment lifecycle. .
“We are pursuing a strategy that combines Northern Trust’s global architecture with innovative partners like Essentia to help clients maximize the value of their data and optimize the performance of their investments,” said Pete Cherecwich, president of corporate services. Northern Trust companies and institutions. “Essentia’s next-generation data analytics technology enables institutional investors, both asset managers and asset allocators, to integrate data-driven feedback into their investment process. Through our partnerships with Whole Office, Northern Trust clients around the world can access cutting-edge technology, skills and services designed to help them make repeatable and measurable decisions in their quest for alpha.
Essentia Analytics combines data analytics, client-focused “nudges” and specialized behavioral coaching to provide a feedback loop for active investment decisions.
By working with Northern Trust’s investment portfolio master data filtered through Essentia’s proprietary process, investors can gain insight into their more qualified and less successful investment models, both at the level of the market. company and individual level, in order to optimize decision-making.
“As asset managers and dispatchers seek to maximize alpha, it is essential that they are able to identify behavioral biases and gaps in decision making and adjust their approach accordingly.” , says Clare Flynn Levy, Founder and CEO of Essentia Analytics. “We look forward to the opportunity to work with Northern Trust to improve front office productivity and investment performance for clients around the world. “
Northern Trust launches ESG ETF suite
Northern Trust Asset Management’s FlexShares exchange-traded funds have launched a new range of climate-focused environmental, social and governance (ESG) ETFs.
The funds include the FlexShares ESG & Climate US Large Cap Core Index Fund; FlexShares ESG & Climate Developed Markets ex-US Core Index Fund; FlexShares ESG & Climate Investment Grade Corporate Core Index Fund; and FlexShares ESG & Climate High Yield Corporate Core Index Fund.
The four new climate ETFs are in addition to FlexShares’ existing ESG ETF offerings, the FlexShares STOXX US ESG Select Index Fund (ESG) and the FlexShares STOXX Global ESG Select Index Fund (ESGG). The new range of funds aims to help investors improve their portfolio’s overall ESG rating and reduce carbon risk, while maintaining core exposure to equities and fixed income securities. The funds use the Northern Trust ESG Vector Score as well as a carbon risk rating in order to hedge ESG risks and capitalize on sustainable opportunities.
“The combination of our ESG Vector score and our carbon risk rating creates a complementary strategy to identify sustainability leaders and laggards in each sector in a consistent manner,” says Christopher Huemmer, senior investment strategist for ETFs FlexShares. “In response to increased client demand for climate investing, we have created this new suite to deliver core investment strategies that we believe are best positioned to benefit from the ongoing transition to a low-cost economy. low carbon emission. “
The ESG Vector Score methodology developed by Northern Trust Asset Management seeks to identify the business issues related to ESGs that are most likely to impact a company’s financial performance and the return on investment of a portfolio. The rating methodology is based on a framework established by the Sustainable Accounting Standards Board (SASB) which seeks to identify sustainability industry leaders and mitigate sustainability risks before they affect the company’s financial statements. business and portfolio performance.
With climate change being a major concern for many investors and regulators around the world, each strategy in the core ESG ETF suite also includes a particular focus on carbon risk. In partnership with Institutional Shareholder Services (ISS), each company is screened using a carbon risk assessment methodology to determine its current carbon emissions, efforts to reduce its carbon footprint, and potential exposure to carbon risk. compared to other companies in its sector. Using these ratings, each strategy in the suite aims to reduce overall carbon emissions and carbon reserves relative to its parent index, while also targeting an overall improvement in its carbon risk rating.
Hartford Funds Launches First Fixed Income ETF Focused on Sustainable Investing
Hartford Funds has launched an actively managed ESG-focused fixed income exchange-traded fund (ETF) called Hartford Sustainable Income ETF, which will be sub-advised by Wellington Management Company LLP.
The fund seeks to provide current income and long-term total return, within a framework of sustainability. It will invest in a range of fixed income sectors, including high yield securities, investment grade securities, bank loans and emerging market debt. In addition, the ETF will integrate a sustainability framework as part of its core investment strategy.
The ETF will track its performance against the Bloomberg US Aggregate Bond Index and will be managed by the same portfolio management team that currently manages the Hartford Strategic Income Fund. That is, Campe Goodman, Joseph F. Marvan and Robert Burn will be the portfolio managers of the ETF.
“We are delighted to launch a multi-sector bond fund that uses a sustainable investment approach in an ETF structure,” said Vernon Meyer, chief investment officer at Hartford Funds. “The launch of this actively managed ETF product once again demonstrates our commitment to providing options that not only help investors achieve their long-term investment goals, but also provide investors with the opportunity to invest in a product. that uses a sustainable investment approach. “
Wellington Management will use its internally developed sustainability framework to identify issuers that it believes have demonstrated a commitment to sustainable practices. These issuers include those who Wellington believes may have a positive social and / or environmental impact, are leaders or demonstrate improvement in ESG characteristics based on Wellington’s proprietary information, and / or those with whom Wellington engages on ESG characteristics to improve ESG disclosure and better practices.
* PLANSPONSOR and PLANADVISER are owned and operated by Institutional Shareholder Service (ISS).