Products introduced over the last week include a small-cap ETF from WisdomTree and three mutual funds from Westwood Holdings Group.
In addition, Grandeur Peak announced that its Global Opportunities Fund and International Opportunities Fund will soft-close on May 1.
Here are the latest developments of interest to advisors:
1) WisdomTree Plans Small-Cap Version of Popular Japan ETF
WisdomTree Investments is planning to introduce a small-cap version of its Japan Hedged Equity Fund (DXJ), and has filed with the SEC to offer the WisdomTree Japan Hedged SmallCap Equity Fund. The new fund will try to reflect the performance of the WisdomTree Japan Hedged SmallCap Equity Index, which consists of dividend-paying small-cap companies incorporated in Japan and traded on the Tokyo Stock Exchange that make less than 80% of their revenue from sources in Japan. The exclusion of companies making 80% or more revenue from Japan tilts the index toward companies that have a more significant global revenue base and are thus less sensitive to yen fluctuations.
The ETF also intends to hedge against the yen by entering into forward currency contracts or futures contracts designed to offset yen exposure.
2) Westwood Introduces EM and Global Equity Mutual Funds
Westwood Holdings Group announced the availability of three new mutual funds focused on global and emerging-market equities. The Westwood Emerging Markets Fund (I shares, WWEMX; A shares, WWEAX), Westwood Global Equity Fund (I shares, WWGEX) and Westwood Global Dividend Fund (I shares, WWGDX) are managed by Westwood’s global and emerging markets team led by Patricia Perez-Coutts and Thomas PintoBasto.
Key characteristics that the team looks for in evaluating an investment may include company management aligned with an economic value added (EVA) philosophy, a strong business with core franchise value, above average cash flow generation and consistency of earnings growth. Fund shares may be purchased through investment advisors or directly from the fund.
3) Grandeur Peak Funds to Soft-Close
Eighteen months after launching the Grandeur Peak Funds, Grandeur Peak Global Advisors announced that it will soft-close both the Grandeur Peak Global Opportunities Fund (GPGIX) and the Grandeur Peak International Opportunities Fund (GPIOX) on May 1. The funds will remain open to existing investors, but will no longer accept new shareholders after May 1. Financial advisors and retirement plans with clients in either fund will be able to continue investing in that fund for existing as well as new clients.
Robert Gardiner, CEO, and Blake Walker, CIO, have been longtime advocates of tightly capping assets in their small- and micro-cap portfolios. Among the short list of other global small cap and international small-cap mutual funds available, there are very few managers truly committed to the small/micro space, Grandeur Peak says. Most are, or have become, mid-cap products.
Read the April 7 Portfolio Products Roundup on AdvisorOne.