Investment Product and Service Launches

Art by Jackson Epstein

Lincoln Financial Group and Capital Group Combine TDFs and Annuities

Lincoln Financial Group and Capital Group have launched the new American Legacy Target Date Income variable annuity. This solution combines the features and benefits of an annuity with a target-date fund (TDF).

“Today, we are announcing American Funds target-date investing with Lincoln’s protected lifetime income solution to help investors fund the life they desire in retirement when facing increasingly longer lifespans,” says Will Fuller, executive vice president, president of Annuities, Lincoln Financial Distributors and Lincoln Financial Network.

American Legacy Target Date Income features a design offered in both fee- and commission-based options. The TDF invests in a mix of stocks and bonds that automatically adjust over time, becoming more conservative and tailored to the needs of the investor, not just to retirement, but through retirement. Product features include Lincoln Financial Group’s highest amount of level protected lifetime income, 5.7% for life at age 65; guaranteed growth for future income at a minimum of 6% each year, with higher results allowing a higher amount of growth; joint life options; and beneficiary protection.

Federated Investors, Inc. to Rename Brand and Ticker Symbol

Federated Investors, Inc. will change its name to Federated Hermes, Inc., and  its New York Stock Exchange (NYSE) ticker symbol will change from FII to FHI. 

The name change will be effective as of January 31, and Federated’s Class B Common Stock will begin trading on the NYSE under the FHI ticker symbol on February 3. These changes follow Federated’s July 2018 acquisition of a majority interest in London-based Hermes Fund Managers Limited, which operates as Hermes Investment Management, a provider for integrated environmental, social and governance (ESG) investing. 

Federated will provide more information about these changes in February.

MSCI Publishes Principles of Sustainable Investing

MSCI has published a report calling investors to integrate environmental, social and governance (ESG) considerations throughout their investment processes, to promote an effective transition towards a sustainable economy.

“The MSCI Principles of Sustainable Investing,” is a framework designed to illustrate specific, actionable steps that investors can and should undertake to improve practices for ESG integration across the investment value chain.

The framework includes three core pillars to full ESG integration: investment strategy; portfolio management; and investment research.

“The world is rapidly evolving due to dramatic environmental, social and governance shifts, including the effects and implications of climate change and the move to a low carbon economy, which will significantly impact the pricing of financial assets and the risk and return of investments, and lead to a large-scale re-allocation of capital over the next few decades,” says Henry Fernandez, chairman & CEO at MSCI.  

“Sustainable investing is a critically important part of the long-term investment process and our framework is designed to help investors understand approaches to effectively integrate ESG criteria as a core component of building a resilient portfolio,” says Remy Briand, head of ESG at MSCI. “Through our research, tools and efforts to promote transparency, we seek to support investors in the critical quest to integrate ESG considerations in their portfolios.”

“The MSCI Principles of Sustainable Investing” can be found here.