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Bells & Whistles | Published in July 2012

Bells & Whistles

By PLANSPONSOR staff | July 2012
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Each month, Bells & Whistles highlights recent product introductions that plan sponsors may find of interest.

Illustration by Becca Stadtlander

More information about these announcements can be found on www.plansponsor.com. If you have a product announcement that you believe would be of interest to our readers, drop us a line at news@plansponsor.com.

INVESTMENTS

F-Squared Investments has upgraded its AlphaSector Fixed Income Indices, now rebranded as AlphaSector INFInity. Key aspects of the modifications to the indices, which are derived from “inflation neutral fixed income,” include an ability to “de-risk­­” in challenging markets by 1) going 100% to short-term treasuries, 2) expanding the fixed-income sector exposure to include Treasury inflation-protected securities (TIPs), and 3) floating rate securities; they also feature a revised investment algorithm with an absolute return decision framework. The enhanced indices will be included automatically within existing AlphaSector Allocator, Asset Allocation and Target Risk indices and portfolios.

Neuberger Berman Group LLC launched the Neuberger Berman Absolute Return Multi-Manager Fund, with multiple subadvisers. The fund aims to offer the liquidity and accessibility of a mutual fund and the underlying investments of hedge fund strategies. Neuberger Berman’s fund-of-hedge-funds team, the fund’s managers, is looking for capital appreciation with absolute returns by allocating fund assets to multiple hedge fund advisers who employ a mix of alternative investment strategies. Unlike traditional hedge funds, the fund provides daily liquidity, lower investment minimums ($1,000 for Class A and C shares), delivers 1099s to shareholders, offers full transparency of portfolio­ holdings and has no performance-based management fee. The fund employs the risk management and monitoring, mix of managers and strategies and operational due diligence previously available only to institutional and high-net-worth investors through traditional hedge funds.

Prudential Investments introduced the Prudential Jennison International Opportunities Fund. The mutual fund aims for long-term capital growth and broad international diversification by investing in companies outside the U.S. Three share classes are available. Jennison Associates LLC, the fund’s manager, will use a bottom-up selection process for the fund and a flexible investment strategy without regional, country, sector or benchmark constraints.

American Beacon Advisors launched American Beacon The London Company Income Equity Fund to focus on dividend income and capital appreciation. The fund seeks to generate a highly competitive dividend income stream and invest in stocks to deliver capital appreciation. It has five institutional and investor share classes, and its subadviser, The London Company, is a registered investment adviser with $3.2 billion in assets under management and $6.3 billion in total entity assets as of March 31.