Products May 9, 2013

Fidelity Debuts Target Volatility Portfolio

The Fidelity VIP Target Volatility Portfolio is designed to deliver more consistent returns in guaranteed benefit products. 
Reported by

Fidelity Investments’ portfolio is offered through variable annuity and variable life insurance products, and seeks to manage total return volatility within a target range.  

The VIP Target Volatility Portfolio primarily invests in U.S. equities, foreign developed market equities, U.S. investment grade bonds, and cash through a combination of underlying Fidelity mutual funds as well as exchange-traded funds (ETFs) and index futures. The investment team has the flexibility to invest in other asset classes, such as high-yield debt and emerging market equities and debt.  

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

The managers seek a target portfolio volatility—defined as the measurement of the magnitude of up and down fluctuations of the fund’s return over a specified time period—of 10% over rolling one-year periods. The investment team develops volatility forecasts to adjust the portfolio’s asset allocation in response to periods of forecasted high or low market volatility. The portfolio’s strategy is implemented through a disciplined and integrated investment process that seeks to deliver a consistent risk and return profile, supported by Fidelity’s global research including an extensive asset-allocation research team.  

The VIP Target Volatility Portfolio uses a blended benchmark as an asset-allocation guide made up of the Dow Jones U.S. Stock Market Index (42%), MSCI EAFE Index (18%), Barclays U.S. Aggregate Bond Index (35%), and Barclays U.S. three-month Treasury Bellwether Index (5%).  

“Turbulent market swings like the ones we’ve witnessed over the past decade can far exceed the risk tolerance of many investors,” said Xuehai En, the lead portfolio manager for the fund. “We believe managing volatility provides the opportunity for more consistent returns over time.” 

Fidelity also said that Ohio National Financial Services and Jefferson National are the first insurance companies to package the portfolio in their annuity offerings, ONcore Individual & Group Variable Annuities (in New York, NScore variable annuities issued by National Security Life and Annuity Company) and Jefferson National’s flat-fee variable annuity, Monument Advisor.  

Deals & People May 9, 2013

BNY Mellon Creates Performance Analytics Role

Bruce Feibel was named head of performance analytics at BNY Mellon Investment Management.
Reported by

In a newly created position that supports oversight of BNY Mellon’s investment managers, Feibel is responsible for leading performance and risk analysis, analyzing the factors that drive returns and create risks for the firm’s investment strategies and portfolios. He reports to Cynthia Steer, head of manager research and investment solutions. 

Feibel has been with BNY Mellon since 1999, most recently as head of strategy for the investment services global financial business. Earlier in his career, Feibel worked at State Street Global Advisors, where he provided performance measurement services to the marketing, portfolio management and client services teams.

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

Feibel serves on the editorial board of the Journal of Performance Measurement and is a member of the CFA Institute GIPS Standards Risk Management Working Group.  He wrote “Investment Performance Measurement” and co-authored “Complying with the Global Investment Performance Standards.”

Feibel holds a bachelor’s degree from the University of Florida and the designation of chartered financial analyst.

«