Top Portfolio Products: Decker & Co. Launches With Focus on Southeast Asia

Decker & Co., a broker dedicated to the southeast Asia/frontier space, launched this week.

New products introduced over the last week include a suite of large-cap equity funds from Nuveen and four new corporate term bond ETFs from BlackRock.

Meanwhile, Vanguard added new interactive graphics to help retirement plan participants.

Here are the latest developments of interest to advisors:

1) Decker & Co Launches; Dedicated to Southeast Asia/Frontier Space

Decker & Co, the first U.S.-based broker to be fully dedicated to the southeast Asia/frontier space, announced recently that it is fully licensed and operational. The firm’s clearing partner is Broadcort, a division of Merrill Lynch. The new firm will offer U.S. funds access to local research and listed corporates through its partnership approach. In doing so, it will fully promote its partners’ brands regionally to help them build their own brand equity. It plans to bring handpicked corporates to the U.S. and will frequently visit Asia for that purpose. The firm will also arrange investor trips to Asia at least quarterly.

Mark Decker has more than 20 years’ experience in the region, including positions in Hong Kong with Bear Stearns/Lehman Brothers and CLSA in the ’90s. He was also director of equities at SCB Securities in Thailand, and was responsible for the opening of the west coast office of Kim Eng Securities in 2009. The firm’s team has relationships with funds focused on investing in southeast Asia. Its network includes broker partners in Vietnam, Sri Lanka, Malaysia, India, Bangladesh, Indonesia, Hong Kong, Thailand, Singapore, Pakistan and Cambodia.

2) Nuveen Asset Management Launches New Equity Strategies

Nuveen Investments has announced the availability of a new suite of large-cap equity mutual funds managed by Bob Doll, Nuveen’s asset management chief equity strategist and senior portfolio manager.

The series includes six newly created funds and three funds having recently transitioned to Doll. They are: traditional, Nuveen Large Cap Value Fund (NNGAX); Nuveen Large Cap Core Fund (NLACX); Nuveen Large Cap Growth Fund (NLAGX); specialty, Nuveen Core Dividend Fund (NCDAX); Nuveen Concentrated Core Fund (NCADX); Nuveen Growth Fund (NSAGX); and alternative, Nuveen Large Cap Core Plus Fund (NLAPX); Nuveen Equity/Long Short Fund (NELAX); and Nuveen Equity Market Neutral Fund (NMAEX).

3) BlackRock Expands iSharesBonds Suite of Defined Maturity ETFs

BlackRock announced recently that its iShares ETFs business has expanded its suite of iShares bonds with four new corporate term ETFs. These new products offer investors access to a diversified pool of investment-grade corporate credit securities with a defined maturity date, daily liquidity and price transparency. If iSharesBonds are held until maturity, investors can expect a yield that is similar to the yield to maturity of the underlying bonds held in the ETF. The four new iSharesBonds are as follows: iSharesBond 2016 Corporate Term ETF (IBDA); iSharesBond 2018 Corporate Term ETF (IBDB); iSharesBond 2020 Corporate Term ETF (IBDC); and iSharesBond 2023 Corporate Term ETF (IBDD)

4) Vanguard Offers New Tools for Retirement Plan Participants

Vanguard is offering new interactive graphics to help 401(k) retirement plan participants make key decisions about their retirement assets. Two examples of this new technology are the “Boost Your Savings” dial and its retirement analysis alerts. Both tools are delivered to participants based on their savings rate, investment mix, other retirement readiness indicators, and plan features. They are prominently displayed on the vanguard.com secure home page of targeted participants.

The savings booster is a spedometer-like gauge that displays a participant’s current savings rate and recommends a range of increases. Users can turn the dial to the number they want and in one click, submit a request to change their regular contribution amount. In a test of the dial, Vanguard recommended a 1%, 2% or 3% increase. Participants who used the dial between its rollout in December 2012 and May 2013 increased their savings rate by an average of 2%.

Retirement analysis alerts are delivered in the form of a stoplight to encourage participants to use either of two investment advice services if offered within their plan. One is the personal online advisor (POA), which provides a personalized forecast and fund recommendations from Financial Engines. The other is the Vanguard managed account program (VMAP), powered by Financial Engines, which creates, implements and monitors a custom plan for a fee. For the year to date through May, nearly a quarter of the participants who received these alerts clicked on them. Of those who responded, 12% adopted POA and 6% chose to enroll in VMAP.

Read the July 5 Portfolio Products Roundup.

Consequences Of Maxing Out Your Credit Card

There are over 600 million credit cards held by U.S. consumers and the average credit card debt per household averages about $16,000 according to the Federal Reserve's February 2012 report on consumer debt. Just because your card company offers you a $5,000 limit, doesn't mean that you have to come close or exceed this amount. Some of this debt can be a reflection of carrying a high credit card balance or maxing out on credit card purchases. With the average credit card holder owning 3.5 cards, it's important to manage and keep track of purchases made with your card, so you don't go over your credit card limit or cap.

Consequences
If for some reason you are nearing your credit card limit or if you go over your limit, there are dire consequences. You should be aware and prepared for the penalties and fees that will incur. When you max out on your card, you owe a debt to the credit card company and you're expected to pay it.

There are various reasons why you shouldn't max out your credit card. First off, you won't be able to use your card at any time once you push your card to the limit.

You will need to pay off a portion of the balance in order for you to use the card again. Some companies will close or put a freeze on the account all together, requiring you to pay the entire amount in full in order to use the card again. You can bet on the fact that your credit score will be affected and will drop. The majority of you credit score is based on how much "available" credit you use.

Thirty percent of an individual's FICO score is affected by what happens on the card. If you had good credit before you applied for the card, that will surely change the course of things, when you max out your card.

If you try to refinance a mortgage loan, apply for educational loans or attain additional credit, the maxed out card will show up on your credit report which look bad on your part and can determine if you are a risk or not.

At the lender's discretion, they can charge a default rate if you max out. These rates can vary depending on the company and can rise as high as 30% or more depending on the balance, which could spell disaster for your repayment plans.

Depending on your credit cap, if you're paying the minimum balance, the repayment can take up to a few years. The balance can include finance and interest charges that accrue along with over-limit fees which can balloon your balance. Don't miss any payments or pay late under any circumstances. This may increase your minimum payment amount and the lender can raise your interest rates which will affect your overall credit score.

What you can do
You can always choose to pay the balance in full; again this is depending on how much the balance is. The best way to prevent going over your credit card limit is to stop the spending and create a budget in advance and establish where and when you want to spend your money. You can also sign up for email or text alerts to tell you when you're about to go over your limit.

Kaia Zawadi is a professional freelance journalist/writer/editor. She regularly writes stories about banking and personal finance for MyBankTracker.com