American Beacon Ionic Strategic Arbitrage Fund
American Beacon Ionic Strategic Arbitrage Fund will pursue capital appreciation with low volatility and reduced correlation to equities and interest rates. The plan is to pursue a series of arbitrage strategies: Convertible Arbitrage (40-50% of the portfolio), Credit/Rates Relative Value Arbitrage (20-30%), Equity Arbitrage (30-40%) and Volatility Arbitrage (5-15%). This strategy is currently operating as a hedge fund, Iconic Absolute Return Fund LLC, which made 3% in 2014. The fund will be managed by the Iconic team that runs the hedge fund. The opening expense ratio will be 1.98%. The minimum initial investment will be $2500 for the no-load Investor class shares.
Artisan Developing World Fund
Artisan Developing World Fund (ARTYX) will pursue long-term capital appreciation. The plan is to invest in “self-funding companies that are exposed to the growth potential of developing world economies with limited dependence on foreign capital.” The notion is that capital flight represents a serious risk; by investing in firms not dependent on outside, especially foreign, capital, the manager seeks to mitigate the risk. The fund will be managed by Lewis Kaufman who had been managing the five-star, $2.8 billion Thornburg Developing World Fund (THDAX). The opening expense ratio will be 1.50% on Investor class shares. There’s also a 2.0% redemption fee on shares held fewer than 90 days. The minimum initial investment will be $1,000; Artisan will waive the minimum if you establish (as you should) an automatic investing plan.
Aspiration US Sustainable Equity Fund
Aspiration US Sustainable Equity Fund will try to maximize total return, consisting of capital appreciation and current income. The plan is to invest in the stocks of firms that pass their ESG screens. They’ve established a 5% threshold for exclusion: if more than 5% of your earnings come from GMOs or plastic water bottles, for example, they won’t invest in you. The fund will be managed by Bruno Bertocci and Thomas J. Digenan, both of UBS. The opening expense ratio has not been announced. The minimum initial investment will be $500. (Wow.)
Emerald Small Cap Value Fund
Emerald Small Cap Value Fund will pursue long-term capital appreciation by investing in a non-diversified portfolio of US small cap stocks. Their size universe is equivalent to the Russell 2000 Value Index’s. Up to 20% might be REITs or foreign small caps purchased through ADRs. This is a reorganization of the former Elessar Small Cap Value Fund (LSRIX) which has been around and only modestly successful since 2012. The fund will be managed by Richard Geisen and Ori Elan, the same duo that managed LSRIX. Mr. Geisen has over $200,000 in his fund while Mr. Elan has been $50,000-100,000. The opening expense ratio has not been disclosed. The minimum initial investment will be $2000, reduced to $1000 for tax-advantaged accounts.
Lazard Emerging Markets Equity Advantage Portfolio
Lazard Emerging Markets Equity Advantage Portfolio will pursue long-term capital appreciation. The plan is to invest in an emerging markets equity portfolio which might include common stocks ADRs, GDRs, EDRs, REITs, warrants and other derivatives. The fund will be managed by a team headed by Paul Moghtader. The opening expense ratio will be 1.40% for the no-load “Open” shares. The minimum initial investment is $2500.
Lazard International Equity Advantage Portfolio
Lazard International Equity Advantage Portfolio will pursue long-term capital appreciation. The plan is to invest in a global equity portfolio, but one which “typically focus[es] on securities of non-US developed market companies.” They can invest in stocks, ETFs, warrants and depositary rights (e.g., ADRs). They will be able to use various derivatives to hedge the portfolio. The fund will be managed by a team headed by Paul Moghtader. The opening expense ratio will be 1.20% for the no-load “Open” shares. The minimum initial investment is $2500.
Lazard Managed Equity Volatility Portfolio
Lazard Managed Equity Volatility Portfolio will pursue long-term capital appreciation. The plan is to use a bunch of quantitative screens to create a global portfolio equity portfolio with low volatility and attractive risk-return characteristics. The fund will be managed by a team headed by Paul Moghtader. The opening expense ratio will be 1.05% for the no-load “Open” shares. The minimum initial investment is $2500.
PIMCO Real Return Limited Duration Fund
PIMCO Real Return Limited Duration Fund will pursue maximum real return, consistent with preservation of capital and prudent investment management. The plan is to invest in a global portfolio of sovereign and corporate inflation-indexed securities of varying maturities. The fund will normally limit its foreign currency exposure to 20% but might go as high as 30%. 10% of the portfolio might be invested in emerging markets and 10% might be invested in junk bonds. And the entire portfolio might be invested in derivatives. The fund will be managed by some as-yet unnamed person or persons. The opening expense ratio is, likewise, not set . The minimum initial investment for the “D” share classes will be $1,000.
