Investment Product and Service Launches

Putnam Investments to launch five new investment strategies; Nationwide adds two new death benefit features; and Broadridge launches multi-account collective investment trust fund.

Nationwide Adds Two New Death Benefit Features

Nationwide has announced the launch of enhanced legacy features to the Nationwide defined protection annuity, a registered index-linked annuity.

The two new death benefit features, which are available at no extra cost, are designed to fit the emerging needs of financial professionals and their clients in today’s challenging economic environment.

The return of the premium death benefit feature guarantees beneficiaries will receive no less than the original premium invested in the annuity. It is automatically added if the annuitant and co-annuitant are both 75 years old or younger on the application sign date.

The spousal protection feature protects both spouses and provides a death benefit on both of their lives, even on qualified contracts.

Nationwide DPA, which was created with product development partner Annexus, also provides three defined protection levels which limit negative performance. This allows clients to select how much of their investment—90%, 95% or 100%—will be protected from market losses and helps determine their performance opportunities. DPA also features a variety of index strategies that can offer upside potential and be tailored to fit a broad range of investment objectives.

 

Putnam Investments to Launch Five New Investment Strategies

Putnam Investments has announced that the firm will bring three active fixed-income and two active quantitative equity exchange-traded funds to the market, all with an environmental, social and governance focus, following completion of the regulatory process.

The two quantitative equity ESG strategies will be sub-advised by Putnam affiliate PanAgora Asset Management, Inc. Putnam will be the sponsor/investment adviser on all five transparent ETFs.

Additionally, the new fixed-income and quantitative equity ESG ETFs, along with the existing Putnam Sustainable Leaders ETF and Putnam Sustainable Future ETF, will serve as underlying investment components within the firm’s ESG-focused target-date series, the Putnam Sustainable Retirement Funds. This new suite will be implemented in the coming months through a repositioning of the existing Putnam RetirementReady Funds target-date series.

The Putnam ESG Core Bond ETF will seek high current income consistent with what Putnam believes is prudent risk by investing mainly in a diversified portfolio of investment-grade fixed-income securities, with a focus on companies or issuers that Putnam believes meet relevant ESG criteria. The fund will invest mainly in investment-grade bonds of governments and private companies with intermediate- to long-term maturities (three years or longer). The portfolio managers are Michael Salm, Andrew Benson and Sri Mahanti.

The Putnam ESG High Yield ETF will seek high current income, with capital growth as a secondary goal when consistent with achieving high current income. The fund will invest mainly in bonds that are below investment grade that are obligations of U.S. companies or issuers and/or have intermediate- to long-term maturities (three years or longer). The fund will focus on companies or issuers that Putnam believes meet relevant ESG criteria. The portfolio managers are Rob Salvin and Norm Boucher.

The Putnam ESG Ultra Short ETF will seek as high a rate of current income that Putnam believes is consistent with preservation of capital and maintenance of liquidity. The fund will invest in a diversified portfolio of fixed-income securities composed of short-duration, investment-grade money market and other fixed income securities, with a focus on companies or issuers that Putnam believes meet relevant ESG criteria. The portfolio managers are Joanne Driscoll, Andrew Benson and Michael Lima.

The Putnam PanAgora ESG International Equity ETF will seek long-term capital appreciation by investing mainly in common stocks of companies of any size outside the United States, with a focus on securities that PanAgora believes offer attractive benchmark-relative returns and exhibit positive ESG metrics. The portfolio managers are George Mussalli and Richard Tan.

The Putnam PanAgora ESG Emerging Markets Equity ETF will seek long-term capital appreciation by investing mainly in common stocks of emerging markets companies of any size, with a focus on securities that PanAgora believes offer attractive benchmark-relative returns and exhibit positive ESG metrics. The portfolio managers are George Mussalli and Richard Tan.

 

Broadridge Launches Multi-Account Collective Investment Trust Fund

Matrix Trust Company, a subsidiary of Broadridge Financial Solutions, Inc., has announced the launch of a new collective investment trust, the Matrix Trust Multi-Manager Stable Value Fund, in conjunction with Mesirow Financial as sub-adviser. Retirement plan advisers will now have access to the multi-account fund, which provides diversification in stable value with no minimum investment.

The fund builds upon Matrix’s existing CIT platform, providing Matrix custody clients and consultants as well as plan sponsors and recordkeepers access to the fund. Matrix Trust is the trustee of the fund and is assisted by Mesirow Financial as sub-adviser on the allocation to and performance monitoring of underlying stable value investments. The fund will initially invest in equal weights with four stable value products offered by Lincoln Financial Group, Great West Life and Annuity, New York Life and Transamerica for the stable value strategy.

As a newly created pooled fund investment option, the fund has no history or performance record. It is a CIT available as an investment option to certain tax-qualified, employer-sponsored retirement plans and is not available to the general public. Investments in the fund are not registered with the Securities and Exchange Commission, are not bank deposits insured by the Federal Deposit Insurance Corporation nor any other agency of the U.S. government, are not guaranteed by Matrix Trust Company and are subject to investment risks, including loss of principal.

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