The Securities and Exchange Commission, by law, gets between 60 and 75 days to review proposed new funds before they can be offered for sale to the public. Each month, Funds in Registration gives you a peek into the new product pipeline. Most funds currently in registration will not become available until June.
The month’s SEC pipeline saw filings for Direxion U.S. Hyper Growth ETF (HIPR) and Direxion U.S. Fallen Knives ETF (NIFE). Precious little of the former. As to the latter: Fallen. Falling. What a difference just a couple letters might make!
Anfield Capital Management Extended Yield ETF
Anfield Capital Management Extended Yield ETF [YALT], an actively-managed ETF, seeks total return through capital appreciation and income with a primary focus on instruments with potentially higher yields as compared to traditional fixed income instruments and markets. YALT is a fund of funds that might invest in anything except open-end mutual funds; its investable universe is fixed-income ETFs, closed-end funds, master limited partnerships, and business development companies. The fund will be managed by Peter van de Zilver and David Young of Anfield. Its opening expense ratio is 1.30%.
Fiera Capital Intermediate Tax Efficient Fixed Income Fund
Fiera Capital Intermediate Tax Efficient Fixed Income Fund will seek attractive after-tax total return. The plan is to invest in muni bonds, which might range in maturity from 1-30 years though the portfolio as a whole will typically be 3-10 years. Up to 20% of the portfolio might be in high-yield bonds and up to 20% might be investing in other sorts of fixed-income assets that “offer relatively attractive after-tax returns.” The fund will be managed by Bryan Laing. Mr. Laing is a VP for credit research at Fiera and used to work at Bloomberg. Its opening expense ratio has not been disclosed, and the minimum initial investment will be $1,000.
Franklin Liberty U.S Treasury Bond ETF
Franklin Liberty U.S Treasury Bond ETF, an actively-managed ETF, seeks “Income.” That’s it. Just “Income.” The plan is to buy Treasuries, but it “intends to primarily focus on U.S. Treasury securities with a remaining maturity of between 1-30 years.” (Ummm … that’s pretty much all of them, at least as far as bonds go). They might also buy MBS and hedge interest rate exposure. The fund will be managed by Warren Keyser and Patrick Klein, Ph.D., of Franklin Templeton. Its opening expense ratio has not been disclosed.
Global X Emerging Markets Bond ETF
Global X Emerging Markets Bond ETF, an actively-managed ETF, seeks a high level of total return consisting of both income and capital appreciation. The plan is to invest in government and corporate, fixed-rate and floating-rate, investment-grade and high-yield EM debt. The fund will be managed by Joon Hyuk Heo who heads Mirae Asset Global Investment’s global fixed-income team. Its opening expense ratio has not been disclosed.
Oakmark Bond Fund
Oakmark Bond Fund will seek to maximize both current income and total return. The plan is to invest across fixed-income classes. They commit to at least 25% investment grade but beyond that, the portfolio allows possibly 20% equities, 10% defaulted corporate securities and up to 35% junk bonds. The fund will be managed by M. Colin Hudson, CFA and Adam D. Abbas. Its opening expense ratio is 0.54% for Advisor shares whose minimum initial investment will be $100,000.
Polar Capital Emerging Market Stars Fund
Polar Capital Emerging Market Stars Fund will seek long term capital growth. There’s no much information about the investment strategy beyond a bland announcement that they’ll buy EM equities and “derivatives for hedging or efficient portfolio management purposes or to reduce portfolio risk.” The fund will be managed by Jorry Rask Nøddekær. Its opening expense ratio is 1%, and the minimum initial investment will be $1 million. We don’t normally report on institutional funds. Two special considerations in this case. First, Polar Capital just entered into an agreement to buy FPA’s two international funds and to extend its marketing worldwide. And, second, “Jorry Rask Nøddekær.” Cool.
Stone Ridge Diversified Alternatives Fund
Stone Ridge Diversified Alternatives Fund will seek total return. The plan is to invest in six strategies that they believe to be diversified (uncorrelated to one another) and diversifying (uncorrelated to either stocks or bonds). These strategies will initially include Reinsurance, Market Risk Transfer, Style Premium Investing, Alternative Lending, Single Family Real Estate and Healthcare Royalties. The fund will be managed by “[ ], [ ]and [ ] (the “Portfolio Managers”).” Its opening expense ratio and minimum initial investment have not been disclosed.
Terra Firma US Concentrated Realty Equity Fund
Terra Firma US Concentrated Realty Equity Fund will seek long-term capital appreciation, with current income as a secondary objective. Extra points to those who can decipher the key passage in their SEC filing.
Performance data for the classes varies based on differences in their fee and expense structures. The performance figures for Open Class shares reflect the historical performance of the then-existing shares of the […] (the “Predecessor Portfolio”) (the predecessor to the Fund, for which […] served as the investment adviser), a series of […], from September 23, 2011, to […], 2020. The performance figures for Open Class shares also reflect the historical performance of the then-existing shares of the predecessor fund to the Predecessor Portfolio, the […] (the “Predecessor Fund”) (for which […] served as the investment adviser), for periods prior to September 23, 2011. Jay P. Leupp has served as a portfolio manager for the Fund, the Predecessor Portfolio, and the Predecessor Fund since December 31, 2008. Christopher J. Hartung has served as a portfolio manager for the Fund and the Predecessor Portfolio since 2018.
And thanks to msf (who checked and determined that the unnamed Predecessor is Lazard US Realty Equity and the predecessor to the predecessor was Grubb & Ellis AGA US Realty) and the folks on the MFO discussion board for helping me breathe deeply afterward. The fund will be managed by Jay Leupp who managed both the Predecessor Fund and Predecessor Portfolio and Christian Hartung. Its opening expense ratio is 1.25%, and the minimum initial investment will be $2500.