Product & Service Launches – 4/11/24

Lincoln Financial Group Introduces Side-by-Side Pooled Employer Retirement Solutions

Lincoln Financial Group announced the launch of FlexPEP(k) and FlexPEP(b), comprehensive pooled employer plans for 401(k) and 403(b) plans, respectively.

With these side-by-side solutions, Lincoln aims to address the retirement benefits needs of businesses and not-for-profit organizations. These solutions add to Lincoln’s lineup of group plan solutions totaling more than $1.3 billion in assets.

Smart Retirement Solutions, Inc., focused on delivering independent fiduciary services, will serve as the pooled plan provider. Envestnet, a provider of technology, insights and solutions for the wealth management industry, will serve as the 3(38) investment provider, managing the investment fund menu for both solutions.

“We’re seeing an uptick in the adoption of group plan solutions as employers look to streamline their retirement plan administration, minimize costs and enhance fiduciary protection,” Matt Condos, senior vice president, retirement plan services product solutions, Lincoln Financial Group, said in a statement. “We are committed to educating plan sponsors of all sizes about the value of PEPs.”

Alger Expands High-Conviction Growth Equity Lineup

Fred Alger Management, LLC, a privately held $25.7 billion growth equity investment manager, announced the launch of two high-conviction portfolios: Alger AI Enablers & Adopters and Alger Concentrated Equity. Both strategies are available as ETFs, mutual funds and separate accounts.

Alger AI Enablers & Adopters, managed by Patrick Kelly, is a focused portfolio of companies involved in developing Artificial Intelligence technologies. Enablers are companies producing the building block components for and investing in AI infrastructure, such as machinery, hardware, software and services. Adopters are companies that integrate AI into their businesses to enhance their products or services or make their operations more productive.

Alger Concentrated Equity is a focused portfolio of 20 to 30 stocks representing the highest conviction investment ideas of portfolio manager Ankur Crawford. The portfolio is sector agnostic and is considered “non-diversified,” which enables Crawford to overweight her highest conviction names without traditional mutual fund construction constraints.

“The expansion of our investment platform through these two new strategies is the direct result of hearing from our clients looking for differentiated investment opportunities,” Christoph Hofmann, Alger’s president and chief distribution officer, said in a statement.

Fidelity Launches Three Actively Managed Liquid Alternatives ETFs

Fidelity Investments announced the launch of three actively managed liquid alternatives ETFs: Fidelity Dynamic Buffered Equity ETF, Fidelity Hedged Equity ETF and Fidelity Yield Enhanced Equity ETF.

The options-based ETFs are listed on CBOE and available commission-free for individual investors and financial advisers through Fidelity’s online brokerage platforms, adding to Fidelity’s $14 billion alts lineup.

“The launch of these ETFs broadens Fidelity’s liquid alts offering at a time when we’re seeing increased client demand for downside protection and enhanced income while invested in equity markets,” Bill Irving, head of Fidelity Asset Management Solutions at Fidelity Investments. “The new options-based equity strategies seek to offer risk mitigation, volatility reduction, or yield enhancement in a familiar ETF wrapper, backed by Fidelity’s legacy of active management.”

Underlying each ETF is a common core U.S. equity strategy that seeks to outperform the S&P 500 Index. The portfolio construction aims to keep the fund’s risk characteristics similar to the benchmark’s. Each ETF combines this core equity portfolio with a distinct options-based overlay, seeking to add defensiveness or enhance yield.