Jefferson Expands Funds Lineup
The additions complement a lineup of more than 380 tax-deferred funds across a range of 59 Morningstar categories.
Invesco’s Balanced-Risk Allocation Fund uses a monthly trading, derivatives-based approach making it well suited for a tax-deferred vehicle. It seeks to balance portfolio risk equally among developed equities, long-term government bonds and commodities, according to Scott Wolle, Invesco’s chief investment officer.
Jefferson will also add the Invesco VI Balanced-Risk Allocation II, which seeks to provide total return with a low to moderate correlation to traditional markets, employing a strategy that may invest in derivatives and other financially linked instruments such as futures, swap agreements and total return swaps. Jefferson will also add the Invesco VI Money Market I.
Jefferson added the BCM Decathlon suite of three quantitative exchange-traded funds (ETFs)-based strategies from BFP Capital Management. A quantitative engine tracks and ranks 107 ETFs using pattern recognition technology. It then selects the 10 most promising ETFs based on upward price movement and defined volatility levels for each rebalancing period. The software engine pursues efficient portfolios that adapt to changing market conditions. The suite includes the BCM Decathlon Conservative, BCM Decathlon Moderate and BCM Decathlon Aggressive.
The Power Income VIT, from W.E. Donoghue & Co., is a diversified portfolio of income-producing, high-yield, fixed-income securities that use a tactical strategy which primarily trades between high-yield bond funds and money markets. The strategy has been tested through a number of market cycles, including the technology compression of 2000-02 and the crisis of 2007-09, with relatively minimal drawdown.
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In mid-June Jefferson will offer the Hatteras Alpha Hedged Strategies Fund, a daily liquid, fully transparent fund of funds offering exposure to multiple hedge fund managers and multiple hedge fund strategies including long and short equity, market neutral, relative value, long and short debt, event driven and managed futures strategies. This fund seeks to achieve consistent returns with low correlation to traditional financial market indices while maintaining a high correlation to the Hedge Fund Research Inc. Fund of Funds Composite Index.
Legg Mason Dynamic Multi-Strategy VIT II seeks the highest total return while reducing volatility with multiple layers of risk-management strategies. These strategies include dynamic rebalancing, which systematically shifts allocation to and from cash in response to market conditions, and event risk management, which aims to reduce the impact of sudden and dramatic market drops on the portfolio. Jefferson will also add the Legg Mason ClearBridge Variable Small Cap Growth.
Jefferson National added a suite of funds from Janus Capital Group.
The Janus Aspen Protected Growth Portfolio allows investors to participate in the stock market while seeking to cap downside losses at up to 20%. It includes a hedged component for capital preservation and may also invest in derivatives.
Other Janus additions: The Janus Aspen Flexible Bond Portfolio, the Janus Aspen Global Technology Portfolio and the Janus Aspen Moderate Allocation Portfolio.
Jefferson National is offering the Fidelity VIP FundsManager portfolios. This series of actively managed fund of funds from Fidelity Investments uses research and extensive quantitative analysis to meet five target-risk portfolios, from conservative to aggressive, with equity allocation ranges of 20% to 85%. These are the Fidelity VIP FundsManager (20%), Fidelity VIP FundsManager (50%), Fidelity VIP FundsManager (60%), Fidelity VIP FundsManager (70%) and Fidelity VIP FundsManager (85%).
From Wilshire Funds Management, Jefferson National will add three ETF-based target-date funds that use dynamic allocations to align over time with investors’ shift from wealth accumulation to income. Designed for target retirement dates in 2015, 2025 or 2035, plus or minus two to three years, the funds are the Wilshire VIT 2015 ETF, the Wilshire VIT 2025 ETF and the Wilshire VIT 2035 ETF. The suite includes the Wilshire VIT Socially Responsible fund, and five additional asset class funds, the Wilshire VIT Balanced, Wilshire VIT Equity, Wilshire VIT Income, Wilshire VIT International Equity and Wilshire VIT Small Cap Growth.