February 2017 IssueLong scroll reading

Funds in registration

By David Snowball

An “arabesque” is either a graceful move in ballet or a graceful and intricate design in art and architecture. I’ll be fascinated to see how it plays out as a fund.

American Beacon TwentyFour Strategic Income

American Beacon Twenty Four Strategic Income will seek high current income with some hope of capital appreciation. The plan is to buy income-producing … uhh, stuff. Almost any conceivable stuff, globally and non-diversifiedly. The fund will be managed by a team from TwentyFour Asset Management, a London-based fixed-income specialist with nearly £8 billion in AUM. The opening e.r. will be 1.10% and the minimum initial investment is $2,500 for the Investor share class.

Arabesque Systematic USA Fund

Arabesque Systematic USA Fund will seek capital appreciation over the full market cycle with below benchmark levels of risk. The plan is to confuse me, apparently. They’re going to allocate 0-100% in stocks and the remainder in cash. They’re going to assess the appropriate equity exposure daily, which implies the prospect of daily rebalancing. The equity portfolio is biased toward momentum, moderate growth and ESG-screened equities. The fund will be managed by Dr. Hans-Robert Arndt and Philipp Müller of Arabesque Asset Management which is based in London and Frankfurt. The opening e.r. will be 1.20% and the minimum initial investment is $2,500.

Arabesque Systematic International Fund

Arabesque Systematic International Fund will seek capital appreciation over the full market cycle with below benchmark levels of risk. They’re going to allocate 0-100% in non-US stocks and the remainder in dollars. They’re going to assess the appropriate equity exposure daily, which implies the prospect of daily rebalancing. The equity portfolio is biased toward momentum, moderate growth and ESG-screened equities. The fund will be managed by Dr. Hans-Robert Arndt and Philipp Müller of Arabesque Asset Management which is based in London and Frankfurt. The opening e.r. will be 1.20% and the minimum initial investment is $2,500.

Clearbridge All Cap Growth ETF

Clearbridge All Cap Growth ETF will seek long-term capital appreciation. The plan is to invest in a diversified portfolio of large, medium and small capitalization stocks that have the potential for above-average long-term earnings and/or cash flow growth. The fund will be managed by Evan Bauman, Peter Bourbeau, Richard A. Freeman and Margaret Vitrano of ClearBridge Investments, LLC. The opening e.r. will be 0.59%. Since it’s an ETF, albeit an actively-managed one, there is no minimum initial investment.

Ivy Crossover Credit Fund

Ivy Crossover Credit Fund will seek to provide total return through a combination of high current income and capital appreciation. The plan is to invest in bonds on the razor’s edge between investment grade and junk; such instruments can … wait for it! crossover from one category to the next. Some of those bonds will also fall into the “rising star” and “fallen angel” categories, though it’s not explained why this presents a compelling investment opportunity. The fund will be managed by Rick Perry of Ivy Investment Management. The opening e.r. hasn’t been released for any of the seven projected share classes and the minimum initial investment for the no-load “N” shares appears to be set by folks like Schwab.

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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.