Launch of investment products and services

Schwab Asset Management reduces fees by 10 funds

Schwab Asset Management, the asset management division of The Charles Schwab Corporation, announced a reduction in the operating cost ratios of 10 passively managed exchange-traded funds and actively managed mutual funds.

These changes are in addition to the fee reductions that occurred in December 2021 for five other fixed income ETFs. In February this year, the net operating expense ratio of the Schwab International Opportunities Fund, an actively managed mutual fund, was also reduced to 0.83% from 1.25%.

“We are constantly reviewing our cost-effective product package to find new ways to reduce costs for investors,” said David Botset, Managing Director, Head of Equity and Innovation at Schwab Asset Management. “We are committed to delivering products that are affordable, affordable and scalable, and we are very pleased to be able to continue to make our customers beneficiaries of our strategic focus.”

LeafHouse Financial Services announces a new DCIO service

LeafHouse Financial Services LLC has announced that its investGrade service is only available to defined contribution professionals. InvestGrade focuses on “democratizing data” to increase the free flow of information in the pension plan industry.

According to the company, this approach promotes transparency and allows people to make informed decisions to increase positive results and lower costs. Early users will be able to manage future features, the company added.

The cloud-based service creates an effective solution that uses the data for the benefit of advisors, employers and their employees, according to the company. InvestGrade developers incorporate over a decade of experience in research and technology development, working with advisors, archivists, third-party administrators and DCIO companies to create an interactive ecosystem.

With the service, investment managers can explore over 100,000 unique investments. It also offers filters and comparison tools that include an average investment evaluation system.

The GPA evaluation approach is designed as an easy-to-understand result for investments that range from 1.0 to 4.0. The GPA applies to funds in retirement plans, including collective investment trusts and index funds. This allows investment managers to compare fund return data and reallocate resources. This independent data exchange allows DCIO to aggregate assets, positions and plans from all registrars in one place with the appropriate licensing agreements.

InvestGrade has partnered with projekt202, which specializes in designing and building end-to-end user experiences across multiple verticals and segments. The service will be available to wizards in the fall and will include a “freemium model”, which means that wizards will be able to use the finished version for free with upgrade and customization options.

Russell Investments expands personalized managed accounts

Russell Investments has expanded its range of personalized managed accounts with the launch of two additional direct indexing options that provide personalized exposure to international and fixed capital.

The company’s PMA package now includes eight separately managed accounts that combine actively managed SMAs for shares with directly indexed SMAs. These solutions use technology to help investors achieve growth and optimal post-tax results, according to the company.

PMAs offer a wide range of personalized overlay and exclusion services, including maximizing post-tax wealth, developing an optimal tax-efficient transition plan, aligning specific ESG preferences with investments, diversifying concentrated stock positions, and limiting purchases in stocks or industries that the customer already owns or is biased.

Russell Investments’ PMA solution includes a dedicated team of portfolio managers, quantitative research analysts and service teams. They also have centralized trading and deployment, as well as automated capabilities for year-round tax management, including tax loss collection, minimizing laundry sales, smart tax turnover and holding period management.

Ultimately, accounts aim to help clients achieve the desired results while minimizing the impact of taxes and transaction costs, while maintaining a tracking error to a target portfolio.

The newly added customized direct indexed fixed capital SMA seeks to ensure long-term capital growth by allocating shares to US and internationally developed markets. It is designed to track the performance of a mixed distribution to the Russell 3000 Index and the MSCI World ex USA (Net) Index. The newly added customized direct indexed international SMA seeks to ensure long-term capital growth in stocks in developed markets outside the United States. It is designed to track the performance of the MSCI World ex-USA (Net) index.

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