December 2016 IssueLong scroll reading

Funds in registration

By David Snowball

You know it’s a bad month for fund registrations when the most interesting thing out there is a bad idea: The ETF Market ETF (TETF). If you’ve ever thought to yourself, “there’s nothing I want more than to be trapped investing in a very limited universe of companies, almost none of whom have enduring competitive advantages,” you can now not only invest there, you can day trade if you want. (sigh) Otherwise, year-end is a slow time in the fund launch world.

American Beacon Alpha Quant Core Fund

American Beacon Alpha Quant Core Fund will seek long-term capital appreciation. The managers will use “a proprietary fundamentally-based, systematic process” and/or “a proprietary methodology” since select a portfolio of mid- to large-cap stocks that qualify either as “high quality” or “value.” The fund will be managed by Massimo Santicchia and Katherine Gallagher of Alpha Quant Advisors. The initial expense ratio will be1.18% for Investor shares. The minimum initial investment will be $2500.

American Beacon ARK Disruptive Innovation Fund

American Beacon ARK Disruptive Innovation Fund will seek long-term growth of capital. The plan is to invest in the stocks of domestic and foreign disruptive innovation companies. Apparently disruption will center on four areas: genomics, next gen internet, fintech and industrial innovation (which might involve Our Robot Overlords).The fund will be managed by Catherine D. Wood, CIO of ARK Investment Management. The initial expense ratio will be1.38%. The minimum initial investment will be $2500.

Della Parola Risk Optimized Equity Fund

Della Parola Risk Optimized Equity Fund will seek long-term growth of capital. The plan is to invest in S&P 500 stocks but build the portfolio through overlays for “beta optimization, sector rotation and security selection to constituents of the S&P 500 Index.” The fund will be managed by David A. Mascio, Hong Miao, and Kenton Zumwalt of Della Parola CM. The initial expense ratio hasn’t been released, though the fact of a 2.5% sales load has. The minimum initial investment will be $1,000.

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About David Snowball

David Snowball, PhD (Massachusetts). Cofounder, lead writer. David is a Professor of Communication Studies at Augustana College, Rock Island, Illinois, a nationally-recognized college of the liberal arts and sciences, founded in 1860. For a quarter century, David competed in academic debate and coached college debate teams to over 1500 individual victories and 50 tournament championships. When he retired from that research-intensive endeavor, his interest turned to researching fund investing and fund communication strategies. He served as the closing moderator of Brill’s Mutual Funds Interactive (a Forbes “Best of the Web” site), was the Senior Fund Analyst at FundAlarm and author of over 120 fund profiles. David lives in Davenport, Iowa, and spends an amazing amount of time ferrying his son, Will, to baseball tryouts, baseball lessons, baseball practices, baseball games … and social gatherings with young ladies who seem unnervingly interested in him.