Investment Product Launches for the Week

This week’s new investment products and services include an absolute return fund from Goldman Sachs; a book about stable value investing from Stable Value Consultants; and the launch of Tideline, a consulting firm designed to provide tailored advice about institutional impact investing.

Goldman Sachs Asset Management Launches GS Absolute Return Multi-Asset Fund

Goldman Sachs Asset Management says the new Absolute Return Multi-Asset Fund seeks to generate “consistent, attractive returns that are less dependent on the direction of traditional markets.” The fund invests across multiple asset classes accessing investment ideas from across GSAM, with a dynamic asset allocation approach to navigate changing markets.

“In a period of increased market volatility and uncertainty, investors are looking for ways to generate differentiated returns while managing portfolio losses,” explains Jim McNamara, head of global third-party distribution. “Our Absolute Return Multi-Asset Fund seeks to provide investors with a powerful tool for navigating a changing market environment.”

Neill Nutall, the fund’s co-portfolio manager, says the goal is to achieve consistent returns in all market conditions, within an accessible mutual fund format.

“We are focused on offering investors the opportunity to diversify into alternative sources of return while remaining nimble to capture investment opportunities,” Nutall explains.

The Fund is managed by Goldman Sachs’ Global Portfolio Solutions Group, the dedicated multi-asset investing team within the Asset Management division. The fund is being offered in a variety of share classes, including Institutional, Class R, Class IR and Class R6 Shares.

NEXT: Comprehensive Look at Stable Value

New Stable Value Publication from Stable Value Consultants

The author of a new book, “Consultants & Plan Sponsor's Guide to Stable Value,” says the publication is the “first book published on the topic since 1998.”

The book was penned by Chris Tobe, a CFA at Stable Value Consultants. He notes stable value remains one of the largest investments in 401(k) plans, with more than $700 billion in assets.  

“The Consultants and Plan Sponsors Guide to Stable Value is the first book published on the topic since 1998 by Fabozzi,” he says. “Over the last 17 years and especially after the 2008 financial crisis the entire investment market including stable value has changed drastically. This book is designed for investment professionals and attorneys and CPA's working in the 401(k) market as well corporate and public plan sponsors.”

Unlike the earlier book by Fabozzi et al, which was published from an industry provider point of view, this book comes from the client and consultant view, he adds. The 14 chapters in the book are designed to be “stand alone on very detailed subtopics.”

The book can be purchased at here.

NEXT: New Kid on the Impact Investing Block

Leadership Announces Launch of Tideline

In response to accelerating institutional demand, three experienced professionals in financial services and impact investing announced the launch of Tideline, a consulting firm designed to provide “tailored advice to clients developing impact investment strategies and solutions.”

Christina Leijonhufvud, creator and former head of J.P. Morgan's social finance business; Ben Thornley, former head of the global research and consulting practice at Pacific Community Ventures; and Kim Wright-Violich, former CEO of Schwab Charitable, are the brains behind Tideline.

The group says they “joined forces to help institutional clients take advantage of new opportunities in program and product development.”

“We have witnessed a significant shift in institutional interest in impact investing over the past few years, as managers have established track records of success and more investment options have become available,” notes Wright-Violich. “Non-conflicted, actionable advice on impact investing is needed now more than ever.”

According to the new Tideline leadership, the broad category of “impact investing” grew 76% in just two years, from $3.74 trillion at the beginning of 2012 to $6.57 trillion at the start of 2014. Impact investing is often used as another term for SRI or ESG—short for socially responsible investing (SRI) and environment, social and governance (ESG) investing.

NEXT: Coming Together on CITs

A New CIT from Swan and Gordon

Swan Global Investments and Gordon Asset Management introduced a new collective investment trust (CIT) offering tailored for qualified retirement plans.

Swan Global Investments, an independent investment advisory firm, announced that it will be the co-investment manager to the Swan Defined Risk Collective Investment Trust series, along with Gordon Asset Management, LLC.  The Alta Trust Company will serve as trustee.

The Swan Defined Risk Collective Investment Trust is made up of a series of five target-risk funds designed to meet the requirements to be qualified default investment alternatives (“QDIA”) under Department of Labor regulations under ERISA 404(c)(5).

According to the firms, the CIT series “uses an innovative, equity stair-stepdown methodology as participants age and approach retirement.”

The Swan Defined Risk CIT’s five funds are based on the Swan Defined Risk Strategy (DRS), which was first introduced in 1997 through separate accounts and is also available via mutual funds. It is an actively managed, hedged equity, rules-based process designed to hedge against large stock market declines.

According to the firms, the strategy “has proven highly successful, having consistently outperformed the S&P 500 Index over full market cycles, defined as including a bull and a bear market.”