The funds in registration with the SEC in January will launch right around April Fool’s Day. For some, that’s probably foreshadowing.
Two particularly interesting sets of launches:
American Century has debuted two actively-managed, non-transparent ETFs, both with ESG screens.
WCM is launching three new funds, all international, all quality-focused, two explicitly ESG-focused. WCM has a really outstanding, off-the-radar record. The non-ESG versions of these funds are both five-star and Great Owl funds. They deserve to be taken quite seriously.
American Century Mid Cap Growth Impact ETF
American Century Mid Cap Growth Impact ETF (MID), an actively-managed non-transparent ETF, seeks long-term capital growth. The plan is to invest in 20-40 midcap stocks that (a) are posed to sustainable growth and (b) conformity with United Nations Sustainable Development Goals. The fund will be managed by Rob Brookby, Rene P. Casis, and Nalin Yogasundram. Its opening expense ratio has not been disclosed.
American Century Sustainable Equity ETF
American Century Sustainable Equity ETF, an actively-managed, non-transparent ETF, seeks long-term capital growth. The plan is to use a quant model to buy large cap, ESG-screened GARP-y stocks. The fund will be managed by a five-person team from American Century. Its opening expense ratio has not been disclosed.
Blueprint Growth Fund
Blueprint Growth Fund will seek capital appreciation while managing risk. The plan is to construct a portfolio using both individual securities and various sorts of funds (OEFs, CEFs, ETFs). It will be multi-asset and, so far as I can tell, momentum-based. The fund will be managed by Jon Robinson and Brandon Langley of Blueprint Investment Partners. Its opening expense ratio is 1.63%, and the minimum initial investment will be $5,000.
First Trust TCW Securitized Plus ETF
First Trust TCW Securitized Plus ETF, an actively-managed ETF, seeks maximize long-term total return. The plan is to buy asset-backed securities. Two small twists on the vanilla strategy: up to 50% might be non-investment-grade and 25% might be in derivatives used to hedge the portfolio. The fund will be managed by a four-person TCW team. Its opening expense ratio has not been disclosed.
Hartford Schroders China A Fund
Hartford Schroders China A Fund will seek long-term capital appreciation. The plan is to invest in the “A” class shares of Chinese firms based on several criteria: “the likelihood of the company to grow shareholder value in the long term; the return on invested capital of the company; the relative valuation of the company; the quality of the company, including the sustainability of its business model; and whether the company has any proprietary competitive advantages.” The fund will be managed by an as-yet undisclosed person or team. Its opening expense ratio has not been disclosed, and the minimum initial investment will be $2,000 for the fund’s own “A” shares.
Leader Government Bond Fund
Leader Government Bond Fund will seek to “maximize total return consistent with income generation and prudent investment management.” (One wonders how many funds don’t advertise a commitment to “prudent investment management”? One so rarely sees, “give us your money quick, the plane leaves for Vegas in an hour!”) The plan is to buy Treasuries and agency mortgage-backed securities (that is, securities based on pools of Fannie Mae-backed mortgages). The fund will be managed by John E. Lekas, founder of Leader Capital. Its opening expense ratio has not been disclosed, and the minimum initial investment will be $2,500.
Syntax Stratified U.S. Hedged Equity ETF
Syntax Stratified US Hedged Equity ETF, an actively-managed ETF, seeks seeking risk-managed growth. It’s competing with the S&P 1500 and is hoping to be less volatile than the index. It’s going to be a fund of Syntax Stratified ETFs plus put options for hedging. The fund will be managed by the Vantage Consulting Group (the equity portion) and Swan Global Investments (the options portfolio). Its opening expense ratio has not been released.
USCF Energy Strategy Absolute Return Fund
USCF Energy Strategy Absolute Return Fund, an actively-managed ETF, will seek long-term total return. The plan is to buy futures contracts including, but not limited to, WTI crude oil, Henry Hub natural gas, NY Harbor ultra-low sulfur diesel (formerly heating oil), RBOB gasoline, Brent crude oil and gasoil. The fund will be managed by John Love and Ray Allen of USCF Advisers. Its opening expense ratio might be 0.75% (the number is in bracketed in the prospectus, which makes it seem tentative).
WCM China Quality Growth Fund
WCM China Quality Growth Fund will seek long-term capital appreciation. The plan is to invest in 35-50 which quality Chinese growth companies which: “(i) have a history of predictable and consistent earnings growth; (ii) have regular, growing dividend payments; (iii) be industry leaders with sustainable competitive advantages; (iv) have corporate cultures emphasizing strong, quality and experienced management; (v) have little or no debt; (vi) have attractive relative valuations; and (vii) have potential for asset base growth.” The fund will be managed by Michael Tian. Its opening expense ratio has not been disclosed, and the minimum initial investment will be $1,000.
WCM Focused ESG Emerging Markets Fund
WCM Focused ESG Emerging Markets Fund will seek long-term capital appreciation. The plan is to invest in 25-50 quality growth companies that have passed growth, valuation and ESG screens. The fund will be managed by Pablo Echavarria and Rolf Kelly. Its opening expense ratio has not been disclosed, and the minimum initial investment will be $1,000.
WCM Focused ESG International Fund
WCM Focused ESG International Fund will seek long-term capital appreciation. The plan is to invest in 30-60 quality growth companies, in both developed and developing markets, that have passed ESG, growth and valuation tests. The manager prioritizes reduced greenhouse gas emissions in the portfolio construction process. The fund will be managed by Pablo Echavarria and Rolf Kelly. Mr. Echavarria has worked at both Thornburg and Turner as an equity analyst and portfolio manager. Its opening expense ratio has not been disclosed, and the minimum initial investment will be $1,000.
