Below is a look at some of the changes the major distributors have made to their platforms this month that may have gone under your radar, collected from Distributor Profiles, a service of sister publications Ignites and FundFire. .
Morgan Stanley’s E * Trade Unit Allows Investors to Buy Coin-Based ETFs
Morgan stanleyThe online brokerage unit of has launched an automatic investing program that allows investors to buy fractions of shares of a selected group of “All-Star” exchange-traded funds.
There are 100 ETFs eligible for the program, which allows investors to transfer a set amount of money into their accounts at set intervals, such as once a month.
The minimum requirement to use the recurring investment service is $ 25 per scheduled deposit.
Eligible funds listed on the company’s website include a range of asset classes and investment styles such as:
- diversified index funds of iShares by BlackRock, Avant-garde, Charles Schwab;
- smart beta strategies Invesco and Tree Of Wisdom;
- thematic funds of Ark Investment Management and GlobalX;
- active fixed income options JP Morgan Asset Management and Pimco;
- and the raw materials strategies of Abrdn and VanEck.
The funds must remain on the E * Trade Record keeping platform to accommodate fractional shares.
E * Trade already allows investors to accumulate fractions of mutual fund shares.
Schwab cuts fees on fixed income ETFs
Charles Schwab has cut fees on five of his proprietary fixed-income ETFs from five basis points to four, according to his recent regulatory filing. In total, index funds represent approximately $ 13 billion in assets.
The impacted ETFs are:
- $ 9 Billion US Treasury Short Term Schwab ETF
- $ 3.4 billion US Treasury Schwab Medium Term ETF
- $ 690 million Schwab 1-5 Year Corporate Bond ETF
- $ 339 million Schwab 5-10 Year Corporate Bond ETF
- $ 101 million Schwab Long-Term US Treasury ETF
Schwab reduced costs following recent price cuts on similar products from competitors Avant-garde and State Street.
Fidelity makes it easier for clients to consolidate their retirement assets
Next quarter, Fidelity plans to make it easier for clients with multiple retirement accounts to see all of their information in one place.
The company plans to begin using personal information included in accounts to identify appropriate investment strategies, taking into account allocations between an individual’s existing workplace savings accounts.
The new policy aims to identify an appropriate investment strategy for plan members with two or more accounts as well as for those who have not registered or viewed Fidelity account details online.
In the case of a participant who is not active on their account, the firm will use the client’s information from where they were previously registered or most recently registered.
The pension plans are managed by Fidelity’s Personal Planning and Work Advice unit, which provides ongoing discretionary investment management.
Fidelity has also trained a new registered investment advisor named Loyalty diversification solutions to manage a range of new asset allocation products, including strategies based on commodity-linked derivatives, according to a recent study Security and Trade Commission deposit.
The newly registered unit will advise future Global Macro Opportunities and Risk Parity funds.
The Global Macro Opportunities fund uses fundamental analysis to invest in “themes that offer asymmetric gains driven by market divergence from secular, cyclical and geopolitical trends,” according to the file.
The Risk Parity fund uses quantitative analysis to balance growth, inflation, real rates and liquidity.
The funds may invest up to 25% of their assets in an unnamed Cayman Islands registered subsidiary of Fidelity that invests in commodity-linked total return swaps based on the value of commodities or commodity indices and in other commodity-related derivatives, the record added. .
JP Morgan uses BlackRock for its internal funds; Win the on-call Biz
JP Morgan also added BlackRock as a sub-advisor to the Six Circles Tax Aware Bond Fund and the Six Circles Credit Opportunities Fund, which it manages internally and uses in paid programs. The funds invest in US Treasuries and government agency bonds.
Separately, BlackRock has tapped JP Morgan’s asset management unit to hold a portion of its $ 2.3 trillion U.S. ETF business.
BNY Mellon and Citi were also added as custodians, joining State Street as a post-trade service provider.
The three new custodians will begin taking over iShares back office work in the second half of 2022 in a transition expected to take 18 months, according to a press release.
JP Morgan is responsible for 30% or $ 690 billion in assets. Citi will take 40% or $ 920 billion, BNY Mellon will keep 15% or $ 345 billion, while State Street, the current custodian, will oversee 15% of iShares’ assets.
BlackRock said the move helps protect against concentration risk.
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