New products and changes introduced over the last week include two ETFs from Gavekal Capital; an alternative mutual fund from TCW Group; a fund from American Independence; an ETF from Global X; two funds from HSBC; an ETF from Van Eck Global; and the acquisition of Imprint Capital by Goldman Sachs Asset Management.
Also, Convergex plans to launch an agency-only ETF quote-sourcing platform; First Trust moved 10 ETFs to Nasdaq; KBW and Nasdaq launched a global bank index; Touchstone announced a subadvisor addition; Vestmark acquired Advanced Objects’ proposal generation technology; and Voya Financial added an annuity.
Here are the latest developments of interest to advisors:
1) TCW Group Adds Alternative Fund
TCW Group has announced that it has partnered with Gargoyle Investment Advisor LLC to offer the TCW|Gargoyle Hedged Value Fund (TFHIX). In conjunction with the offering of this fund, TCW has formed TCW Alternative Funds, a family of alternative mutual funds.
TFHIX has as its investment objective to seek long-term capital appreciation with lower volatility than a standalone stock portfolio. It aims to achieve this outcome through a combination of buying undervalued stocks and selling overpriced index call options.
2) Global X Adds Alternatives ETF
Global X Funds has announced the launch of the Global X SuperDividend Alternatives ETF (ALTY), which seeks to invest in potentially high-income-generating alternative investments.
The fund’s holdings are publicly traded alternatives in the categories of real estate, MLPs and infrastructure companies, institutional managers and fixed income and derivative strategies. The index methodology selects among the highest dividend-yielding securities in each eligible alternative category, and the strategy seeks to reduce volatility by screening for lower-volatility components and assigning greater weights to historically less-volatile categories.
3) American Independence Adds Fund
The fund will be subadvised by portfolio manager Louis Navellier, and will use Navellier’s processes to identify inefficiently priced large-cap growth stocks with superior fundamentals relative to the underlying market and the potential for long-term capital appreciation. In addition to identifying stocks with superior reward/risk (risk-adjusted return) characteristics, the investment process seeks to identify stocks that have superior earnings, revenue and profit margin expansion relative to the general market.
4) HSBC Adds Fixed Income Funds
HSBC Global Asset Management (USA) Inc. has announced the launch of the Global High Income Bond Fund (HBIAX, HBIIX) and the Global High Yield Bond Fund (HBYAX, HBYIX). Both aim to deliver superior returns by finding relative value opportunities in domestic and international corporate bonds with global asset allocations spanning the U.S., Europe, and emerging markets.
HBIAX is for investors seeking a regular income stream. It consists of three core sleeves managed by specialist sleeve managers; Jerry Samet serves as lead fund manager. HBYAX is for investors looking for a higher yield. Mary Bowers is the portfolio manager.
5) Van Eck Global Adds ETF
Van Eck Global has announced the launch of the Market Vectors Morningstar International Moat ETF (MOTI), which leverages research from Morningstar to provide exposure to companies outside the U.S. with competitive advantages and attractive valuations.
MOTI seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Morningstar Global ex-US Moat Focus Index. The index targets a group of companies in developed and emerging markets outside the U.S. that Morningstar equity analysts believe have long-term sustainable competitive advantages and are attractively priced at each quarterly rebalance. The index contains 50 stocks weighted equally each quarter.
6) Gavekal Capital Adds ETFs
Gavekal Capital has announced the launch of the Gavekal Knowledge Leaders Developed World ETF (KLDW) and the Gavekal Knowledge Leaders Emerging Markets ETF (KLEM). Both ETFs are designed to capitalize on the knowledge Eeffect, the tendency of highly innovative companies to experience excess returns in the stock market.
KLDW offers core exposure to developed world equities and seeks to match the performance of the Gavekal Knowledge Leaders Developed World Index (KNLG), an equal-weighted index that tracks highly innovative companies in the developed world.
KLEM offers core exposure to diversified emerging markets equities and seeks to match the performance of the Gavekal Knowledge Leaders Emerging Markets Index (KNLGE), an equal-weighted index that tracks highly innovative companies in the emerging markets.