Investment Product and Service Launches

Art by Jackson Epstein

Fiduciary Insurance Services to Provide Annuity Evaluation Services 

Fiduciary Insurance Services LLC (FIS) has announced the launch of an outsourced, fiduciary annuity evaluation service offered to 3(21) investment advisers and 3(38) investment managers serving the defined contribution (DC) plan market.

FIS’s evaluative process for annuity consideration and inclusion begins by gathering information from the plan’s 3(21) investment adviser or 3(38) investment manager, including answers to questionnaires provided by the Institutional Retirement Income Council (IRIC). These checklists cover the sponsor’s motivation, recordkeeping preferences, historical income offerings, and investment structure and utilization.

In collaboration with the plan’s investment adviser/investment manager, FIS develops a set of recommendations, acting as either a 3(21) fiduciary or as a 3(38) fiduciary, in the form of a report that includes: evaluation and assessment of the suitability of products and the organization behind them, using proprietary information maintained by FIS; customized reports with complete due diligence documentation for FIS’s recommendations; and a report for each insurer backing the selected product or program.

Alegeus Partners with CAPTRUST on New HSA Solution

Alegeus has selected CAPTRUST Financial Advisors as the registered investment adviser (RIA) for its modern health savings account (HSA) investment solution.

Through this partnership, CAPTRUST, which advises more than $600 billion in assets and manages more than $60 billion, will oversee the investment process and select funds to power the fully automated solution within the Alegeus HSA investment experience.

Alegeus announced the new HSA investment solution in June at the company’s 2021 Alegeus Client Success Summit. The solution features real-time and fractional trading, a fully automated robo adviser, and a range of investment strategies to accommodate investor risk levels.

The platform also offers three distinct investing models.  

Managed models are designed for novice investors who prefer to use an automated tool to select and manage their investments on an ongoing basis in accordance with their age, risk profile and time horizon.

Self-directed models are designed for intermediate investors who have the desire to self-select from a menu of monitored investment options covering multiple asset classes to diversify their portfolios and rebalance them manually. This account type provides a balance between structure, control and time requirements.

Lastly, brokerage models are designed for expert investors who want to perform advanced research and trading across thousands of available investment instruments. This account type offers a hands-on, do-it-yourself approach to investing.

“Too often, individuals forget that HSAs can be a highly effective retirement savings tool and don’t realize the powerful benefits they can achieve by investing in these tax-efficient accounts,” says Scott Matheson, managing director, institutional group at CAPTRUST. “We are excited to bring CAPTRUST’s deep expertise and thought capital from the 401(k) industry to the HSA space. The Alegeus solution is leading-edge and goes beyond anything that currently exists in the HSA market, and we’re thrilled to bring our extensive investment management experience to help power it.” 

Cabana Launches New ETF Suite with ETC 

Cabana Asset Management, a wholly owned subsidiary of The Cabana Group LLC and a registered investment adviser (RIA) providing risk-managed investment products to investors, advisers and institutions, will expand its exchange-traded fund (ETF) lineup with the launch of the Cabana Target Leading Sector ETFs, in partnership with private label ETF adviser Exchange Traded Concepts (ETC).

The Target Leading Sector ETF suite seeks long-term growth opportunities by allocating capital to a mix of broad asset class ETFs in response to changing economic conditions. There are three ETFs in the initial suite, each geared toward a distinct investor risk tolerance, ranging from conservative to moderate to aggressive.

Like the first suite of Cabana ETFs that launched late last year, the Target Leading Sector funds are powered by the firm’s proprietary Cyclical Asset Reallocation Algorithm (CARA). CARA uses a combination of fundamental and technical data to seek to identify changes within the economic cycle and construct underlying portfolios made up of asset classes that may be deemed attractive across all market conditions. Although the Sub-Adviser (Cabana Asset Management) anticipates that it will purchase or sell securities based on the signals provided by CARA, the Sub-Adviser maintains full decisionmaking power and may override CARA.

Also similar to last year’s launch, this new fund family will come to market with an initial asset base of approximately $500 million. The new suite of Target Leading Sector ETFs includes: Cabana Target Leading Sector Conservative (ticker: CLSC); Cabana Target Leading Sector Moderate (ticker: CLSM); and Cabana Target Leading Sector Aggressive (ticker: CLSA).

All three funds are actively managed and come to market at an expense ratio of 0.69% after fee waivers.

“Different investors have different needs, which is why we’ve built these funds to incorporate varying levels of risk tolerance,” says Chadd Mason, CEO of The Cabana Group. “That combination of active management and the ability to tailor an approach based on appetite for risk is something we think investors and advisers will find very appealing.”

Cabana’s investment approaches are available to individual investors, advisers and businesses in the form of separately managed accounts (SMAs), collective investment trusts (CITs), a hedge fund, and through these ETFs.

All Cabana ETFs are used within Cabana’s premium Target Drawdown Professional Series SMAs, which are available exclusively through Cabana’s financial professionals and partner advisers.