August 2017 IssueLong scroll reading

Funds in Registration

By David Snowball

It’s rare that I encounter the term “quantamental” twice in the same set of filings. Okay, it’s unheard of. I think they just made it up to irk me.

It’s also rare that Vanguard launches two new funds, much less the global version of two of their most legendary funds: Wellesley and Wellington. It’s hard to imagine why these won’t be $10 billion funds in, oh, about a year.

Calvert Ultra-Short Income NextShares

Calvert Ultra-Short Income NextShares will seek to maximize income, to the extent consistent with preservation of capital, through investment in short-term bonds and income-producing securities. The plan is to invest in a combination of floating rate securities and ultra-short bonds that pass Calvert’s financial, social and environmental screens. The fund is structured as an actively managed ETF. The fund will be managed by Vishal Khanduja and Brian S. Ellis. The initial expense ratio is 0.38% and you may buy as much or as little as you like.

Chiron SMid Opportunities Fund

Chiron SMid Opportunities Fund will seek long-term capital appreciation. The plan is to use a quantamental approach to construct a global small- to mid-cap equity portfolio. The managers use the strategy both to identify attractive regions or sectors, and to identify individual equities. The fund will be managed by Grant Sarris and Brian Cho of Chiron Investment Management. The initial expense ratio is 1.20%, while the minimum initial investment is $100,000.

Eventide Global Dividend Opportunities Fund

Eventide Global Dividend Opportunities Fund will seek dividend income and long-term capital appreciation. The plan is to build an all-cap global portfolio of dividend-paying companies, though the prospectus leaves open the door to calls and puts. The portfolio imposes a number of social and environmental screens. The fund will be managed by Martin A. Wildy. The initial expense ratio for the “N” shares will be 1.17%, while the minimum initial investment will be $1,000.

Fiera Capital International Equity Fund

Fiera Capital International Equity Fund will seek capital appreciation. The plan is to build a portfolio of stocks from 25 to 45 fundamentally attractive companies. . The fund will be managed by Nadim Rizk and Andrew Chan. The initial expense ratio has not been disclosed, while the minimum initial investment is $1,000.

Lazard Equity Franchise Portfolio

Lazard Equity Franchise Portfolio will seek total return consisting of appreciation and income. The plan is to a global equity fund around companies that have an “economic franchise” or, in Morningstar’s terms, “a moat.” They’ve got the ability to hedge their currency exposure, but might not. The fund will be managed by Matthew Landy, John Mulquiney, and Warryn Robertson . The initial expense ratio for Open shares will be 1.20%, while the minimum initial investment will be $2,500.

USA Mutuals/WaveFront Quantamental Long/Short Opportunities Fund

USA Mutuals/WaveFront Quantamental Long/Short Opportunities Fund will seek to produce positive absolute returns while reducing exposure to general equity market risk. The managers will employ (i) a “core long/short equity” strategy; (ii) a “macro overlay” strategy; and (iii) a risk management strategy. The fund represents the conversion of a limited partnership that’s been in operation since 2002.  That fund returned 6.57% from inception (compared to 2.8% for the average long/short fund), with a loss of only 3.45% in 2008. The fund will be managed by Roland Austrup, Ryan Butz and Mark Adam of WaveFront Global Asset Management. In addition, Mr. Butz managed the predecessor fund. The initial expense ratio is 1.30%, while the minimum initial investment $2,000.

Vanguard Global Wellesley Income Fund

Vanguard Global Wellesley Income Fund will seek long-term growth of income and a high and sustainable level of current income, along with moderate long-term capital appreciation. The plan is to invest 60% to 70% in U.S. and foreign investment-grade bonds and 30% to 40% in a global portfolio of dividend-paying, mid- to large-cap stocks. The fund will be managed by John C. Keogh, Loren L. Moran, Michael E. Stack, and Ian R. Link of Wellington Management Company. The initial expense ratio will be 0.42%, while the minimum initial investment is $3,000.

Vanguard Global Wellington Fund

Vanguard Global Wellington Fund will seek long-term capital appreciation and moderate current income. The plan is to invest 60% to 70% in a global portfolio of dividend-paying, mid- to large-cap stocks and 30% to 40% in U.S. and foreign investment-grade bonds. The fund will be managed by John C. Keogh, Loren L. Moran, Michael E. Stack, and Nataliya Kofman of Wellington Management Company. The initial expense ratio will be 0.45%, while the minimum initial investment is $3,000.

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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.