New products and changes introduced over the last week include a long/short credit fund from Palmer Square; a long/short equity fund from 361 Capital; two ETFs from LifeSci Index Partners, LLC; the closing of Direxion’s gold ETF and launch of another fund; Centre Asset Management’s announcement that it will acquire ISI Funds.
Also, Salient Partners adopted the Broadmark Tactical Plus Fund; iCapital announced the availability of Burgiss data; Quovo announced integration with Advizr; Gemini Alternative Funds launched the Galaxy Plus Fund; and Henderson Global Advisors added a fund.
Here are the latest developments of interest to advisors:
1) Direxion to Close Gold Bear ETF, Launch Fund
The Direxion Shares ETF Trust II has decided to liquidate and close the Direxion Daily Gold Bear 3X Shares ETF (BARS), based on the recommendation of Direxion Asset Management, LLC, the fund’s sponsor. Due to the fund’s inability to attract sufficient investment assets, Direxion believes BARS cannot continue to conduct its business and operations in an economically efficient manner.
Shares of BARS will stop trading and will no longer be open to purchase by investors at the close of regular trading on Dec. 26. Shareholders may sell their holdings in BARS prior to the closing date, and those transactions are subject to customary brokerage charges. On Dec. 30, BARS will liquidate its assets and distribute cash pro rata to shareholders who have not previously redeemed or exchanged their shares.
Direxion also announced that it has partnered with Hilton Capital Management to launch the Direxion Hilton Tactical Income Fund, which balances bonds with income-producing equity-based securities. Its goal is a focused outcome of consistent income generation, risk-adjusted growth and preservation of capital.
2) Palmer Square Adds Long/Short Credit Fund
PCHIX has an investment objective of absolute returns over a market cycle through a portfolio of long and short credit investments. It will primarily invest long and short in corporate bonds, loans, convertible bonds, structured credit (most notably, collateralized loan obligations or CLOs), and derivatives.
3) 361 Capital Launches Long/Short Equity Fund
361 Capital has announced the launch of the 361 Global Long/Short Equity Fund (AGAZX), which will be subadvised by Los Angeles-based Analytic Investors.
AGAZX will seek to achieve long-term capital appreciation, and also seeks to preserve capital in down markets. Analytic Investors employs a low-volatility methodology in selecting securities, based on research that shows that over time, stocks with higher betas do not outperform stocks with lower betas. The manager will also actively short high-beta stocks that they believe will underperform the market.
4) LifeSci Index Partners Adds Two ETFs
LifeSci Index Partners, LLC, has announced the launch of two ETFs, the BioShares Biotechnology Clinical Trials Fund (BBC) and the BioShares Biotechnology Products Fund (BBP). Both funds employ an equal weighting approach that allows each security’s performance to affect the ETF equally, regardless of the size of the company.
BBC seeks to track an index of biotechnology companies with a principal focus on running human clinical trials.
BBP seeks to track an index of biotechnology companies with one or more drugs approved by the FDA and in commercial production.
5) Centre to Acquire ISI Funds
Centre Asset Management, LLC has announced that it has reached an agreement with International Strategy & Investment Inc. to reorganize the ISI Funds into corresponding funds managed by Centre Asset Management. As part of the proposed transaction, each ISI fund will be reorganized into a Centre fund with similar investment objectives and investment strategies. If approved by ISI Fund shareholders, the reorganizations are expected to occur on or about March 16, 2015.
The funds will be reorganized as follows: ISI Total Return U.S. Treasury Fund and ISI North American Government Bond Fund into the Centre Active U.S. Treasury Fund; ISI Strategy Fund into the Centre American Select Equity Fund; and ISI Managed Municipal Fund into the Centre Active U.S. Tax Exempt Fund.
6) Salient Partners Adds Broadmark Fund
Salient Partners has announced the adoption of the Broadmark Tactical Plus Fund, which is now available as the Salient Broadmark Tactical Plus Fund (SBTAX, A shares; SBTCX, C shares; SBTIX, I shares). Broadmark Asset Management, LLC will serve as the subadvisor for the fund.
The fund is actively managed to reposition exposure to equity markets relative to macroeconomic shifts. In addition to taking long positions in equity securities, it may use leveraged investment techniques (e.g., investments in futures and options) and short positions on target securities, providing net exposures that can range from 200% net long to 100% net short.
7) iCapital Announces Burgiss Data Available
Online marketplace iCapital Network has announced the availability of Burgiss benchmarking data for independent RIA firms, family offices and other private wealth channel partners using its platform. iCapital’s network of investors will be able to access the Burgiss peer groups directly from its benchmarking tool, which is made available for free to qualified investors registered on the iCapital platform.
Burgiss provides iCapital with performance data on tens of thousands of private fund peer groups, covering multiple asset types and strategies, including buyout, distressed, mezzanine, venture, energy and real estate. Registered users of the iCapital Network platform are able to use this peer group performance data (e.g., Net IRR, TVPI, DPI) to benchmark private equity managers across numerous fund size ranges and vintage years dating back to 2003.
8) Quovo Integrates with Advizr
Account aggregation provider and data analyst Quovo announced that it has integrated with Advizr, a Web-based financial planning solution for financial advisors.
Advizr’s approach enhances an advisor’s ability to efficiently develop plans for all clients.
9) Gemini Alternative Funds Launches Galaxy Plus Fund
Gemini Alternative Funds announced the launch of the Galaxy Plus Fund. a Delaware series limited liability company offering qualified investors access to a group of commodity trading advisors.
The Galaxy Plus Fund enables qualified investors to access multiple underlying trading advisors, through a centralized platform that offers a fixed fee structure, frequent liquidity, transparency, leverage and financing options and risk management.
10) Henderson Global Advisors Adds Fund
The fund seeks to achieve long-term capital appreciation primarily through investment in equities of U.S. companies across the market capitalization spectrum. Its portfolio managers include Michelle Picard, W. Scott Priebe and Derek Pawlak.
Read the Dec. 12 Portfolio Products Roundup at ThinkAdvisor.