It appears that the Office of Management and Budget (OMB) has finished its review of a new rule on ESG investing in retirement plans. The regulation was submitted for review on October 6th to the White House’s OMB as “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights” in a “final rule stage.” “The rule implements Executive Order 13990 from January 20, 2021, titled Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis, and Executive Order 14030 from May 20, 2021, titled Climate-Related Financial Risks.” The rule was listed on the OMB’s review dashboard as of Friday but was removed over the weekend, suggesting that the review has now been completed. This means the Labor Department can now proceed with issuing the regulation.

Finsum:TheOffice of Management and Budget finished its review of a new rule on ESG investing in retirement plans which means that the Labor Department can now proceed with issuing the regulation. 

Fixed income ETFs – and non core fixed income, especially? You go. According to a survey by State Street Global Advisors, they “play an expanded role in portfolio construction” for institutional investors, stated etftrends.com.

As reported in last month, over the next 12 months, the 700 global institutional investors surveyed by SSGA plan to up their exposure to high yield corporate debt; in all likelihood, 62% will do it through ETFs, per “The Role of ETFs in a New Fixed Income Landscape.” Last year was a different story. Just 27% of investors were significantly using ETFs to expand their allocation of to non core fixed income, according to the last year’s fixed income survey.

“Our conversations with investors have reinforced what we already knew – there is significant demand for more targeted fixed income products,” said Tom Kelly, an ETF industry leader co founder. “Our initial product suites aim to create a full toolkit for high-yield investors looking to implement their specific views on the market, and we anticipate extending this approach to other fixed income asset classes.”

Now, with minds of their own, bless ‘em, younger investors are more inclined to place emphasis on total returns over income potential, according to usnews.com.

Almost on the dime, they reinvest dividends – any dividends, while investors who’ve been around the block oh, say, a time or two, might place greater importance on the possibility of greater income. For a steady income to accommodate living expenses, they could lean on their portfolios.

With advisors increasingly turning to model portfolios, it seems the financial product distribution landscape’s in the crosshairs of transformation, according to broadridge.com.

Particularly significant, they’ve had a big time role in packaged mutual fund advisory programs where an advisor hands off discretionary investment management to an internal investment committee/research team at a distributor.

Of course, one size, as you’ve probably heard, doesn’t fit all advisors, broker/dealers and asset managers throughout the industry. Their lights are lit by different factors to leverage model portfolios, the site continued.

Ah, but at the same time, bear in mind that if you’re a, um, control freak, you might want to think twice about model portfolios. Probably do anyway; think twice that is. Anyway, in going with the portfolios, you surrender some control of your asset management, according to smartasset.com. Then there’s the fact that, as with other investments, if you’re looking for a sure thing in terms of performance, forget about it. 

That’s to say nothing of the additional fees tacked on with model portfolios that would be a non issue if you selected investments on your own. 

Location..location…location?

Well, active management fits the bill in any environment, according to Nuveen.com, according to whom actively managed bond strategies can play a part in managing portfolio risk while abetting returns. Not a bad thing, it pointed out, especially these days, with percolating interest rates.

Mike Gitlin, head of Fixed Income for Capital Group, said: “Now is a good time for financial professionals and investors alike to consider active fixed income ETFs. We’ve deliberately built our three new active ETFs in categories that have historically been underserved by active ETF managers. We believe these will help investors manage short-term cash needs, generate tax-exempt income, and benefit from some of the best starting yields we’ve seen in credit in years.”

You might say today’s market conditions have been less than idyllic for fixed income investors. Might you? Anyway, at the same time, investors in equities are on the hunt for bonds to offset stock prices headed the wrong way, according to thestreet.com. Still, with planning and a grasp of available options, investors can find traction in bond markets that are transitioning.

T. Rowe Price added to its active ETF lineup with the launch of the T. Rowe Price Floating Rate ETF (TFLR). This follows the firm’s launch of the T. Rowe Price High Yield ETF last month. TFLR invests primarily in floating-rate loans and other floating-rate debt securities. The manager, Paul Massaro, will focus on investing in BB and B-rated loans, which he believes are likely to keep volatility at below-market rates over time. He will take a disciplined approach to credit selection, featuring rigorous proprietary research and strict risk control, similar to the mutual fund version of the fund. Massaro had this to say about the launch, "Floating rate bank loans hold a unique position across the broad fixed income landscape given their combination of a floating rate coupon and elevated placement in a company's capital structure – an important risk management attribute. Historically, bank loans have provided a partial hedge against rising rates as well as low return correlations with other asset classes, making them a solid portfolio diversifier.” TFLR trades on the NYSE Arca and has an expense ratio of 0.61%.

Finsum:T. Rowe Price brings its active ETF stable to ten with the recent launch of the T. Rowe Price Floating Rate ETF.