Category Archives: etf

2 New Multialternative Funds Hit The Market

In the week that saw February transition into March, two new multialternative mutual funds were launched: the Preserver Alternative Opportunities Fund (MUTF: PAOIX ), which first traded on February 29; and the PineBridge Dynamic Asset Allocation Fund (MUTF: PDAIX ), which debuted on March 2. Preserver Alternative Opportunities The Preserver Alternative Opportunities Fund’s investment objective is to provide current income and capital appreciation with low volatility compared to traditional stock and bond markets. In pursuit of this end, the fund employs three distinct alternative strategies: Event driven Structured credit Tactical trading Although Semper Capital Management is listed in the fund’s prospectus as a sub-advisor, Preserver Partners CIO Floyd Taylor will initially manage all or most of the fund’s assets. As the fund’s assets under management (“AUM”) increase, Mr. Taylor may allocate a portion of those assets to be managed by the sub-advisor, and the fund may add other sub-advisors, as well. As of March 7, the fund’s AUM stood at just $8.8 million. The Preserver Alternative Opportunities Fund’s institutional class shares have a minimum initial investment of $100,000 and a net-expense ratio of 2.18%. The retail class (MUTF: PAORX ) shares have a minimum initial investment of $2,000 and a net-expense ratio of 2.43%. PineBridge Dynamic Asset Allocation The PineBridge Dynamic Asset Allocation Fund was launched with $50 million in seed capital. It pursues its investment objective of providing absolute return by allocating across a broad range of asset classes, taking both long and short positions in stocks, bonds, ETFs, REITs, and more. According to the prospectus , the fund’s secondary objective is generating alpha, with investment selections based on the advisor’s macroeconomic views, fundamental analyses, and risk-management considerations. PineBridge was also the sub-advisor to the Redmont Resolute Fund I, which was liquidated in December 2015, and the firm still is the sub-advisor Redmont Resolute Fund II (MUTF: RMRGX ). Version “I” of the fund was liquidated despite 2015 performance in the top 15% of its peers, while Version “II” had annualized three-year gains of 1.50% through February 29, ranking in the top 34%. The PineBridge portfolio management team thus has a solid track record of outperformance. Shares of the PineBridge Dynamic Asset Allocation Fund are available in institutional and investor-servicing (MUTF: PDAVX ) classes. The institutional shares have a minimum initial investment of $1 million and a net-expense ratio of 0.65%. The investor-servicing shares have a minimum initial investment of $100,000 and a net-expense ratio of 0.80%. Past performance does not necessarily predict future results. Jason Seagraves contributed to this article.

HP Turns to Windows Phone for Its First Smartphone in Years

The HP Elite x3 connected to a monitor, keyboard, and mouse. Image source HP. HP has finally returned to the smartphone market. The HP Elite x3 is a high end, 6 inch

Rate Cut Puts New Zealand ETF In Focus

Taking cues from global growth worries, the Central Bank of New Zealand surprisingly cut interest rates to a new record low on March 9 and hinted at additional easing, if need be. The move followed the bandwagon of global policy easing, especially in the developed world to boost economic growth and inflation. The central bank of New Zealand slashed its official cash rate by 25 bps to 2.25% to counter threats emanating from soft global growth mainly around China and the Eurozone. Also, uncertain global financial markets, the commodity market rout, a struggling dairy sector – one of the key contributors to the country’s GDP – and troubles in the housing market led the bank to ease its policy unexpectedly, per tradingeconomics . Prior to this, the bank had lowered its key interest rate by 25 bps in December 2015. Consumer prices in New Zealand nudged up 0.1% year over year in the fourth quarter of 2015, missing market expectations and marking the lowest level since the third quarter of 1999. This raised concerns among policy makers. Super accommodative monetary policies from Japan to the Eurozone made the New Zealand dollar stronger and kept consumer prices below the target range of 1-3%, per Bloomberg . So, a rate cut is essential to attain the 2% inflation goal by early 2018. Investors should note that New Zealand became the first nation in the developed world to raise its benchmark interest rate in March 2014. This was followed by three more hikes to 3.5% till July 2014. However, the trend reversed from June 2015 when the central bank resorted to a 25 bp rate cut to 3.25%. Market Impact The New Zealand dollar soon lost strength against the greenback following the announcement, though by 0.2% in one day (as of March 9, 2016). While a rate cut is normally viewed as a step forward in expediting growth and boosting the stock market, we are uncertain about how much return can be reaped by the strategy that New Zealand has adopted. It is true that many other developed economies are presently practicing way more accommodative policies. But they haven’t been able to make a jumpstart in their growth goals. Still, the move was probably necessary to give export a boost. The coming few days should go in favor of the New Zealand stock market. All these possibilities definitely turn our attention to the only pure-play ETF on this nation – the iShares MSCI New Zealand Capped ETF (NYSEARCA: ENZL ) . ENZL in Focus This ETF tracks the MSCI New Zealand Investable Market Index, giving investors exposure to 29 stocks. The product is not immensely popular with an asset base of $69.1 million and trading volume of about 35,000 shares per day. It charges investors 47 bps in annual fees. The fund is not widely spread across individual securities. It puts nearly 65% of the assets in the top 10 holdings with Auckland International ( OTCPK:AUKNY ), Spark New Zealand Ltd (NXTCY) and Fletcher Building ( OTCPK:FCREY ), taking the top three positions. The trio makes up for a combined 30% share. From a sector perspective, utilities, healthcare, industrials, telecom, consumer discretionary and materials receive a double-digit allocation each. In terms of performance, ENZL is up about 1.5% so far this year (as of March 8, 2016). In the last one year (as of March 8, 2016), the fund lost just 2.2%. The ETF currently yields 4.18% in dividend per annum making it a useful destination for income-seeking investors, especially at this low-yield environment. The fund has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Original Post