June 14, 2017
The new solution marks an important milestone for the industry, bundling American Funds
mutual funds with ETF solutions
SAN DIEGO, CA, June 14, 2017—BNY Mellon’s Lockwood Advisors, Inc. (Lockwood) today announced it has developed a suite of new portfolios using American Funds® at the core. The Lockwood/American Funds Core Portfolios, created by Lockwood’s investment team, combines American Funds’ mutual funds with exchange-traded funds (ETFs), providing financial professionals with the opportunity to harmonize active and passive strategies to help achieve investor goals.
Lockwood/American Funds Core Portfolios, which leverages objective-based portfolios within a multi-vehicle, low cost investment solution, is designed to allow financial professionals to serve a diverse set of investors via three investment strategies aligned to various life stages: 1) savings (appreciation), 2) transition (balanced), and 3) retirement (conservative growth). The portfolios have an account minimum of $10,000, offering the ability to target emerging investors.
The Lockwood/American Funds Core Portfolios will be available through Lockwood’s award-winning1 managed accounts solution, Managed360®, as well as within a client sponsored offering that leverages Lockwood investment solutions.
“We are committed to bringing to market strategies that will help our clients meet the evolving demands of investors,” said Joel Hempel, chief operating officer at Lockwood, an affiliate of Pershing. “This new solution brings together our portfolio construction capabilities with the American Funds family of mutual funds to provide our clients with a solution that will help them effectively manage investor goals across life cycles through a combination of active and passive strategies.”
Bill Brady, senior vice president of wealth management at Capital Group, added, “With our focus on low fees and a history of superior long-term outcomes, we believe American Funds will be an important ingredient in Lockwood’s portfolios designed to meet people’s real-life objectives.”
Lockwood seeks to deliver superior long-term investment outcomes for clients by emphasizing risk management in construction of portfolios as well as in investment manager selection. Lockwood’s approach to portfolio construction emphasizes in-depth manager due diligence, as well as ongoing monitoring and performance analysis.
Lockwood has been managing portfolios that blend active mutual funds and ETFs since 2003. Other investment solutions offered on the Lockwood platform include a series of additional Lockwood-discretionary managed portfolios, including unified managed accounts, traditional and objective based mutual fund/exchange traded fund (ETF) wrap accounts, and third-party mutual fund/ETF model solutions, as well as a platform of both research covered and open-architecture separately managed account managers. Lockwood had over $7.4 billion in assets under management as of March 31, 2017.
To learn more about Lockwood, visit: www.lockwoodadvisors.com . To learn more about Pershing's managed accounts solutions, visit: https://www.pershing.com/what-we-provide/managed-account-solutions/investment-advisory-services-and-research.
 Lockwood’s Managed360 is the winner of WealthManagement.com’s 2016 “Asset Managers – Separate Accounts” Award, as well as Private Asset Management Magazine’s 2017 “Best New Product for High Net-Worth Advisory” Award.
About BNY Mellon’s Lockwood Advisors, Inc.
Lockwood Advisors, Inc. is a leading provider of managed account solutions. As a program sponsor, Lockwood offers access to some of the industry’s leading investment managers, provides independent research on separate account managers, and develops advisory solutions to help investment professionals meet the diverse needs of their clients.
Lockwood also offers discretionary portfolio management solutions through financial institutions and independent registered investment advisers. Lockwood Advisors, Inc. is an investment adviser registered in the United States under the Investment Advisers Act of 1940, an affiliate of Pershing LLC and a wholly owned subsidiary of The Bank of New York Mellon Corporation (BNY Mellon).
About BNY Mellon's Pershing
BNY Mellon’s Pershing and its affiliates provide advisors, broker-dealers, family offices, hedge fund and ’40 Act fund managers, registered investment advisor firms and wealth managers with a broad suite of global financial business solutions. Many of the world’s most sophisticated and successful financial services firms rely on Pershing for clearing and custody, investment and retirement solutions, technology, enterprise data management, trading services, prime brokerage, managed account technology and operations and business consulting. Pershing helps clients improve profitability and drive growth, create capacity and efficiency, attract and retain talent, and manage risk and regulation. With a network of offices worldwide, Pershing provides business-to-business solutions to clients representing more than seven million investor accounts globally. Pershing LLC (member FINRA, NYSE, SIPC) is a BNY Mellon company. Professionally advised managed accounts are offered through its affiliate, Lockwood Advisors, Inc., which is an investment adviser registered in the United States under the Investment Advisers Act of 1940. Additional information is available on pershing.com, or follow us on Twitter @Pershing.
About BNY Mellon
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries. As of Dec. 31, 2019, BNY Mellon had $37.1 trillion in assets under custody and/or administration, and $1.9 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.
About Capital Group
Since 1931, Capital Group, home of the American Funds, has been singularly focused on delivering superior results1 for long-term investors using high-conviction portfolios, rigorous research and individual accountability. Today, Capital Group manages more than US$1.4 trillion in equity and fixed income assets for millions of individual and institutional investors around the world.2
The Capital Group companies manage equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
1 Equity funds have beaten their Lipper peer indexes in 93% of 10-year periods and 98% of 20-year periods. Fixed income funds have beaten their Lipper indexes in 80% of 10-year periods and 80% of 20-year periods. Based on Class F-2 share results for rolling periods through December 31, 2016. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used). Expenses differ for each share class, so results will vary. Class F-2 shares were first offered on August 1, 2008. Class F-2 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for typical estimated expenses. Results for certain funds with an inception date after August 1, 2008, also include hypothetical returns because those funds’ Class F-2 shares sold after the funds’ date of first offering. Please see americanfunds.com for more information on specific expense adjustments and the actual dates of first sale.
2 As of December 31, 2016
The 2017 Lipper Fund Awards were awarded on March 23, 2017. Fund awards were based on risk-adjusted returns as of November 30, 2016.