Catalyst/Auctos Managed Futures Multi-Strategy Fund
Catalyst/Auctos Managed Futures Multi-Strategy Fund will pursue capital appreciation uncorrelated to global equity markets. The plan is to “employ nine unique trading models, which are applied to the four investment sub-strategies” in order to gain absolute returns through both rising and falling price cycles. The fund will be managed by Kevin Jamali. Catalyst is an alternatives manager whose other two managed futures funds have done quite well. The initial expense ratio capped at 1.99%, though with a management fee of 1.75%, it’s hard to see how that’s going to be sustainable. The minimum initial investment is $2,500, reduced to for $100 for account established with an AIP.
Fulcrum Diversified Absolute Return Fund
Fulcrum Diversified Absolute Return Fund will seek long-term absolute returns. I have no idea of what they’re actually going to do. The prospectus specifies that they’ll invest in a mix of asset classes, apparently through derivatives, with a target portfolio volatility of 12%. There’s no clear explanation of why that’s a good thing or how it might play out in terms of returns. The fund will be managed by a mostly-British team from Fulcrum Asset Management. The advisor has a European UCITS using this strategy; it’s returned 5.6% annually over its first three years. The initial expense ratio will be 1.45% for Advisor shares. The minimum initial investment for Advisor shares is $1,000.
Intrepid Select Fund
Intrepid Select Fund will seek long-term capital appreciation. The plan is to invest in a global, non-diversified portfolio of common stocks, preferred stocks, convertible preferred stocks, warrants, options and foreign securities. The fund will be managed by a team of investment professionals led by Mark Travis, Intrepid’s president. The same team manages Intrepid’s other funds which are substantially better than Morningstar’s ratings would lead you to believe. They have an aversion to losing money, which means they have exceptional cash reserves in the range of 50-75%, and at least one of the funds (Income ICMUX) is noticeably misclassified. The initial expense ratio will be 1.40%. The minimum initial investment is $2,500.
TIAA-CREF Social Choice International Equity Fund
TIAA-CREF Social Choice International Equity Fund will seek a favorable long-term total return, reflected in the performance of ESG-screened international stocks. MSCI will provide the ESG screens and the fund will target developed international markets. The fund will be managed by Philip James (Jim) Campagna and Lei Liao. The managers’ previous experience seems mostly to be in index funds. The initial expense ratio will be 0.79%. The minimum initial investment is $2,500, reduced to $2,000 for various tax-advantaged products.
TIAA-CREF Social Choice Low Carbon Equity Fund
TIAA-CREF Social Choice Low Carbon Equity Fund will seek a favorable long-term total return, reflected in the performance of ESG-screened US stocks. MSCI will provide the ESG screens, which will be supplemented by screens looking for firms who “demonstrate leadership in managing and mitigating their current carbon emissions and (2) have limited exposure to oil, gas, and coal reserves.” I understand the moral imperative and the appeal to CREF’s core constituency (university and non-profit employees), though I’m not aware of the merits of the investment case for this strategy. The fund will be managed by Philip James (Jim) Campagna and Lei Liao. The managers’ previous experience seems mostly to be in index funds. The initial expense ratio will be 0.71%. The minimum initial investment is $2,500, reduced to $2,000 for various tax-advantaged products.
TIAA-CREF Short-Term Bond Index Fund
TIAA-CREF Short-Term Bond Index Fund will seek favorable long-term total return, mainly from current income, by investing in domestic, investment-grade short term bonds. The fund will be managed by Lijun (Kevin) Chen and James Tsang. The initial expense ratio will be 0.47%. The minimum initial investment is $2,500, reduced to $2,000 for various tax-advantaged products.
Trillium All Cap Fund
Trillium All Cap Fund will seek long term capital appreciation by investing in an all-cap portfolio of “stocks with high quality characteristics and strong environmental, social, and governance records.” Up to 20% of the portfolio might be overseas. The fund will be managed by Elizabeth Levy and Stephanie Leighton of Trillium Asset Management. Levy managed Winslow Green Large Cap from 2009-11, Leighton managed ESG money at SunLife of Canada and Pioneer. The initial expense ratio is capped at 1.25% for retail shares. The minimum initial investment is $5000. It appears that the advisor will first launch Institutional ($100,000/0.90%) shares in July. It’s not clear when the Retail shares will debut.
Trillium Small/Mid Cap Fund
Trillium Small/Mid Cap Fund will seek long term capital appreciation by investing in a portfolio of small- to mid-cap “stocks with high quality characteristics and strong environmental, social, and governance records.” Small- to mid- is defined as stocks comparable in size to those in the S&P 1000, a composite of the S&P’s small and mid-cap indexes. Up to 20% of the portfolio might be overseas. The fund will be managed by Laura McGonagle and Matthew Patsky of Trillium Asset Management. Trillium oversees about $2.2 billion in assets. McGonagle was previously a research analyst at Adams, Harkness and Hill and is distantly related to Professor Minerva McGonagall. Patsky was Director of Equity Research for Adams, Harkness & Hill and a manager of the Winslow Green Solutions Fund. The initial expense ratio is capped at 1.38% for retail shares. The minimum initial investment is $5000. It appears that the advisor will first launch Institutional ($100,000/0.98%) shares in July. It’s not clear when the Retail shares will debut.
