Centre Active U.S. Tax Exempt Fund
Centre Active U.S. Tax Exempt Fund will look at to maximize total return through capital appreciation and current income exempt from federal income tax. The key is that Centre is buying an existing muni bond fund but won’t yet name what that fund is. It appears that the old fund has a sales load (they refer to “A” shares) and the new fund won’t. Other than that, nothing. The manager will be James A. Abate, the minimum is $5,000 and the expense ratio is capped at 0.95%.
Driehaus Frontier Emerging Markets Fund
Driehaus Frontier Emerging Markets Fund will seek to maximize capital appreciation. They plan a non-diversified, high turnover all-cap portfolio. They have the ability to invest directly in equities, but also in derivatives and fixed-income securities. The fund will be managed by Chad Cleaver and Richard Thies. Mr. Cleaver co-manages the very fine Driehaus Emerging Markets Small Cap Growth Fund (DRESX). For their purposes, the “frontier” is every EM except the eight biggest: Taiwan, Korea, Mexico, South Africa, and the BRICs. Expenses are not yet set. The minimum initial investment is $250,000, for no particular reason that I understand.
T. Rowe Price Global High Income Bond Fund
T. Rowe Price Global High Income Bond Fund will pursue high income and, secondarily, capital appreciation. The plan is to invest in a portfolio of sovereign and corporate high yield bonds and bank loans, with at least 50% of the expense being from outside the U.S. The fund will be managed by Michael Della Vedova, who manages Price’s European high-yield bond portfolio, and Mark Vaselkiv who manages the High Yield Fund (PRHYX). Expenses will be capped at 0.85%. The minimum initial investment is $2500, reduced to $1000 for IRAs.
T. Rowe Price Global Unconstrained Bond Fund
T. Rowe Price Global Unconstrained Bond Fund will seek high income, some protection against rising interest rates and a low correlation with the equity markets. They’re going to invest in a non-diversified portfolio of corporate and sovereign investment grade fixed income securities. Those might include bank loans. Two portfolio highlights: the fund will be at least 40% non-U.S. but they’ll hedge their currency exposure so that it’s never more than 50% of the portfolio. The fund will be managed by a team headed by Arif Husain, Price’s head of International Fixed Income. Mr. Husain joined Price in 2013 after serving as served as director of European Fixed Income and UK and Euro Portfolio Management with AllianceBernstein. Expenses will be capped at 0.75%. The minimum initial investment is $2500, reduced to $1000 for IRAs.
Vanguard Ultra-Short-Term Bond Fund
Vanguard Ultra-Short-Term Bond Fund will try to provide current income while maintaining limited price volatility. We’ll note that “current income” doesn’t even hint at “any noticeable amount of….” They’ll invest, on behalf of investors with “a low tolerance for risk,” in a diversified portfolio of high quality bonds. They allow that some medium quality bonds might slip in. They anticipate a portfolio duration of 0 – 2 years. The fund will be managed by Gregory S. Nassour and David Van Ommeren. Expenses are capped at 0.20% for Investor class shares. The minimum initial investment is $3,000. The fund will be available in February, 2015.
