Investment Product and Service Launches

BlackRock Debuts First Buffer ETFs; SMArtX Adds 15 Investment Strategies; Fidelity Refiles Spot Bitcoin ETF Application.

BlackRock Debuts First Buffer ETFs With Launch of 2 Funds 

BlackRock debuted its first buffer exchange-traded funds with the launch of the iShares Large Cap Moderate Buffer ETF and the iShares Large Cap Deep Buffer ETF.  

iShares buffer ETFs seek to track the share price return of the iShares Core S&P 500 ETF (IVV) up to an approximate upside cap, while mitigating market downturns by seeking to provide an approximate buffer against IVV losses within target ranges. 

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“iShares buffer ETFs unlock access to institutional-quality risk management solutions in the convenience of the ETF wrapper, helping investors play defense and, importantly, stay invested during turbulent market conditions,” Dominik Rohe, head of Americas ETF and index investments business at BlackRock, said in a statement. 

 

SMArtX Adds 15 Investment Strategies 

SMArtX Advisory Solutions announced it has added 15 strategies to its managed accounts platform. The platform now features 1,232 strategies from 294 asset management firms. 

Among the new strategies are three from Blue Sky Asset Management’s Genfolio model portfolios, designed for active multi-asset allocation exposure, and ST Capital’s mid-cap value model portfolio. Stansberry Asset Management added seven strategies that collectively target a wide range of exposures across market capitalization and asset classes. 

The SMArtX platform also now includes four additional strategies from existing asset management firms Argent Capital Management, Miller/Howard Investments, Scarecrow and T. Rowe Price. 

Fidelity Refiles Spot Bitcoin ETF Application With SEC 

Fidelity has refiled its Wise Origin Bitcoin Trust spot bitcoin exchange-traded fund with the Securities and Exchange Commission. 

“To this point, the lack of a Spot Bitcoin [exchange-traded product] exposes U.S. investor assets to significant risk because investors that would otherwise seek crypto asset exposure through a Spot Bitcoin ETP are forced to find alternative exposure through generally riskier means,” the filing stated.  

Fidelity first applied for a Bitcoin ETF in 2021 but was rejected. Last year, the firm announced the launch of a product that allowed workers to save 20% of retirement funds in Bitcoin. 

BlackRock Inc. kicked off the refiling and amendments to Bitcoin ETFs from Fidelity and a number of other asset managers with its own refiling on June 15. Other asset managers that either refiled or amended applications include Ark Investment Management LLC, Invesco Ltd., WisdomTree Inc., Bitwise Asset Management and Valkyrie Funds.

Salas O’Brien Plans to Address Pay, Workplace and Retirement Benefits

Salas O’Brien has plotted changes to compensation and workplace benefits, with Lucas Hellmer as the new director of benefits and compensation.

Plan sponsor Salas O’Brien plans to establish across the company clearly defined processes for employer benefits and compensation, and is interested in learning more about nonqualified retirement plans, after the firm promoted Lucas Hellmer to the role of director of compensation and benefits earlier this year.  

The Irvine, California-based construction engineering company will consolidate its approach to compensation to drive greater recruitment of workers, Hellmer says.

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“We’re talking [from the] foundational level setting up pay grades for the first time, benchmarking compensation, setting up executive pay structures [and] equity awards,” he says. “Compensation is certainly a hot ticket for everyone, I’m sure, but especially in the engineering industry [because it’s] very, very difficult to recruit for, as you can imagine, mechanical and electrical engineers,” he says. 

Hellmer and Salas O’Brien plotted the changes because the firm’s total compensation and workplace benefits are viewed as tools to retain workers and recruit new employees, says Hellmer.

From “the total comp perspective, it’s a direct correlation to recruitment as well as retention,” Hellmer says.

Possible Retirement Plan Changes

Hellmer is also interested in learning about nonqualified retirement plans to help with compensating company leaders.

“I just heard about [nonqualified plans at the PLANSPONSOR National Conference 2023 panel Improving Retirement Success for Executives],” Hellmer says. “There’s certainly an opportunity for us to really start to explore—as our organization continues to grow—the [employee demand] we’ll identify, [because] as we’re pulling in bigger leaders within the organization, we need to be able to compensate them appropriately.”

Plan sponsors also must get better at going beyond recruiting and onboarding employees, Hellmer says, by using robust benefits and education about benefits to help convince valued workers to remain at the firm.

“It’s really two different parts [to retain and recruit],” he says. “From an [employee] attraction perspective, making sure that we offer competitive benefits to be able to move [individuals] from whatever company that they’re at today. We have to be doing at least what they’re doing or maybe even better to get them over, but also retaining the people that we have.”

As part of the benefits education efforts Hellmer adds that he plans to incorporate into the retirement plan tools for participants to compare their savings and retirement planning progress against peers in their age group.

“That’s going to drive more of the decision making by providing many of those benchmarks to the age populations to let them know [if they’re] behind the eight ball already [for retirement savings],” Hellmer says. “[Employers also] need to make an active choice and say, ‘Hey, by the way, we offer these choices … and … you can now make an educated decision on where you’re at with [the amount of savings relative to] your peers, and by doing that, participants will be able to make a good choice in terms of getting prepared for retirement, whatever life cycle that they’re at.”

The plan sponsor is also considering adding tools to show “what individuals are doing, [how and when to save in a Roth versus] traditional 401(k) [and] how many people are taking advantage of Roth when they should be?” Hellmer says. “As a participant myself, I’d like to see where I should be, rather than knowing just what options I have,” or being reminded to save at a specific rate by the plan sponsor.

Addressing Challenges

When Hellmer joined Salas O’Brien, “the comp and benefits area was undefined,” he says. Hellmer explains that one priority is “continuing to define compensation and benefits] and [to] set, processes in place for our organization.”

Hellmer has also set up two high-deductible health plans at the firm, pairing the plans with a health savings account.

 

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