Products November 23, 2016

Investment Products and Service Launches

BlackRock Updates Lifepath TDFs; and SSGA to Introduce Proprietary Indexes to Replace Terminated Russell Indexes.
Reported by

BlackRock Updates Lifepath TDFs

BlackRock has announced changes to its LifePath series of target-date funds (TDFs). The firm says it now will offer a broader choice among varying degrees of active asset management within the fund series. It also will introduce a new fund designed to capture “smart beta” factors.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

The LifePath fund series will be renamed BlackRock LifePath Dynamic. These funds will offer greater flexibility in adjusting the portfolio’s asset allocation in response to market conditions and opportunities, the firm says. It will also provide access to more actively managed exposures. The exposures will include strategies managed by the firm’s Scientific Active Equity, Fundamental Fixed Income and Global Tactical Asset Allocation teams.

LifePath Dynamic is designed for plan sponsors who seek additional return potential, and plans whose participants have a higher risk tolerance or are behind in their savings. The funds are managed by Matthew O’Hara, co-head of LifePath and global head of the Lifetime Asset Allocation Group at BlackRock, and Phil Green.

The BlackRock LifePath Active series will be renamed BlackRock LifePath Smart Beta. Its exposures will be converted to 80% to 90% iShares smart beta exchange-traded funds (ETFs). Smart beta strategies have become increasingly popular for investors who want to manage risk and target precise exposure to factors that are historical drivers of return, the firm says. BlackRock LifePath Smart Beta funds are in the middle of the flexibility spectrum between BlackRock’s new LifePath Dynamic funds and the flagship LifePath Index funds. They are managed by O’Hara, Ked Hogan and Andrew Ang.

There will be no changes in the investment process or strategy of BlackRock LifePath Index funds.

NEXT: SSGA to Introduce Proprietary Indices to Replace Terminated Russell Indexes

SSGA to Introduce Proprietary Indexes to Replace Terminated Russell Indexes

State Street Global Advisors (SSGA) has announced that underlying indexes tracked by the SPDR Russell 1000 Low Volatility exchange-traded fund (ETF) and the SPDR Russell 2000 Low Volatility ETF will be changed. The move is a result of FTSE Russell’s decision to terminate the Russell 1000 Low Volatility Index and the Russell 2000 Low Volatility Index.

SSGA will introduce proprietary indexes to replace the two Russell Indexes being terminated. Beginning on or about December 14, 2016, the name of the SPDR Russell 1000 Low Volatility ETF (LGLV) will change to the SPDR SSGA US Large Cap Low Volatility Index ETF (LGLV), and LGLV will seek to track the SSGA US Large Cap Low Volatility Index. Also beginning on or about December 14, 2016, the name of the SPDR Russell 2000 Low Volatility ETF (SMLV) will change to the SPDR SSGA US Small Cap Low Volatility Index ETF (SMLV), and SMLV will seek to track the SSGA US Small Cap Low Volatility Index. The gross and net expense ratios of both funds will remain at 0.12%.

“We are excited to leverage our extensive index capabilities, as well as quantitative driven research, to offer an innovative solution for investors who seek to mitigate volatility in an uncertain market,” says Nick Good, co-head of the Global SPDR business at State Street Global Advisors. “By self-indexing we can continue to offer proprietary small-and-large cap low volatility ETFs to our current and future SPDR clients.”

State Street Global Advisors (SSGA) is the asset management business of State Street Corporation.

Deals & People November 23, 2016

Retirement Industry People Moves

Fidelity CEO Abigail Johnson to Succeed Father as Chairman; Hatteras Welcomes Back Managing Director; AB Creates Chief Marketing Officer Role

 

Reported by

Fidelity CEO Abigail Johnson to Succeed Father as Chairman

Fidelity Investments Chairman Edward C. Johnson III said in an internal memo sent Monday that his daughter, CEO Abigail Johnson, will succeed him as chairman of the financial-services firm, according to published reports. Abigail will unify the two positions, while Johnson III becomes “chairman emeritus.” Periodically, he will consult with his daughter and the board of directors.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

In the memo, Johnson III described the move as a “natural progression of Abby’s 28-year career at Fidelity.” Abigail joined Fidelity Investments as a fund manager in the late 1980s before climbing to the rank of CEO in 2014.

Johnson III joined the firm in 1957 and took charge as chairman in 1977. Looking forward, Johnson III says he has never been more convinced of the company’s strength than now.

“As I step back from my management duties, I think it is appropriate to pause and reflect on where we stand as a company. Throughout Fidelity’s long history of growth, our dual commitments to our customers and to innovation have served us well. By investing in technology and using the kaizen method of continuous improvement, we have built a strong brand, industry-leading positions and multiple profitable businesses.

“While we have enjoyed much success, evolving customer preferences and new regulatory requirements are transforming the investment management industry. However, we are prepared to seize the opportunities in this changing, competitive landscape. I have never felt more confident about Fidelity’s future than I do now.”

NEXT: Hatteras Welcomes Back Managing Director

Hatteras Welcomes Back Managing Director

Casey Brunner has rejoined Hatteras Funds as managing director and partner. Brunner will focus on business development and client relations, while serving financial professionals in the brokerage, registered investment adviser (RIA), and consulting communities. He brings more than 19 years of experience to the table.

“Casey’s return further supports our commitment to serving financial advisers and providing alternative solutions designed to solve their needs,” says David Perkins, CEO of Hatteras Funds. “We are excited to welcome Casey back to the Hatteras family. Casey brings extensive experience in alternative investments along with a commitment and dedication to working with financial advisers.”

Brunner joined the firm in 2011 as the Midwest regional director. Prior to working with Hatteras, he held leadership positions with The Rock Creek Group and Morgan Stanley Investment Management. He received a bachelor’s degree from Indiana University and a master’s degree in business administration from Kellogg School of Management at Northwestern University.   

NEXT: AB Creates Chief Marketing Officer Role AB Creates Chief Marketing Officer Role

John Greer has joined AB (formerly Alliance Bernstein) as chief marketing officer, a newly created role for the global investment-management firm. Greer will oversee AB’s institutional, retail and corporate marketing initiatives, while focusing on leading innovation throughout all aspects of the firm’s marketing strategy.

“At AB, we’ve worked hard to innovate for our clients and deliver a set of services that perform well across market cycles,” says Robert Keith, head of AB’s Global Client Group. “John is a leader with an impressive track-record in building memorable, global financial brands through cutting-edge marketing strategies to both retail and institutional audiences. We’ll harness these strengths to serve clients more effectively as we look to expand our presence in key markets and verticals.”

Prior to joining AB, Greer spent 16 years with Franklin Templeton Investments, where he spent more than 16 years in executive-marketing roles including head of U.S. retail marketing, head of global marketing division, and chief marketing officer. He also led advancements in the firm’s digital marketing efforts, and led the establishment of the firm’s global product development committee. He co-chaired that division for several years. Furthermore, Greer served as chair of the Global Brand Committee. Prior to joining Franklin Templeton Investments, Greer spent nearly two decades in direct marketing and advertising.

«