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DSENX/ DLEUX Shiller Enhanced CAPE® and Shiller Enhanced International CAPE® Webcast Tuesday,Feb 7th
My understanding is DSENX is using index swap to buy CAPE index. Instead of paying investors' cash for the stock index it invests all money into fix income instruments and then exchange (or swap) fix income return with CAPE index through an agreement with a counterparty. Index swaps are typical instrument for fix income funds that want to have exposure or invest to equity market. So the fund is called a double value fund as it is using both CAPE index and fix income as the sources of its return. Performance of DSENX should be better than CAPE index as investors' money first go to fix income investment. DSENX should be considered as an enhanced equity index fund and not a balanced fund.
I have seen other funds list The Cayman Islands as a domicile for their holdings.It may indeed have a connection to the counter parties involved.
Why is the SPC being used increasingly as a fund structure? The Cayman Islands continue to be one of the leading offshore jurisdictions for the establishment of hedge funds, private equity funds, real estate funds, and other asset classes. The versatility and efficiency of the SPC structure in terms of the ability to effectively ‘ring fence’ certain assets and liabilities under the same investment portfolio and benefit from statutory recognition of that ring-fencing have made the SPC increasingly attractive in this environment. Like other exempted companies, there are no residency restrictions on Directors or Shareholders of an SPC and there are no Cayman Islands taxes on the SPC or its shareholders.
I've always thought of the Cayman islands as a "legal" tax evasion for the rich an famous. A tax evasion most of us don't have. Hmmm, now I wonder where Tr ...ok, I'm not gonna type it. But I'm thinking it.
I believe in the Big Short (IIRC) it is mentioned as a derivatives-origin haven. Some such recall. I could look it up.
I just thought it beyond droll that Fido using presumably M* data feed would pie-chart it like that. So nuts. This is a prime opp for M* to rejigger their data parsing so as not to imply it's balanced in any sense or anything else along those lines.
At some point in its ranking ascendancy, assuming it continues, M* will have to do an article on it.
Comments
So the fund is called a double value fund as it is using both CAPE index and fix income as the sources of its return. Performance of DSENX should be better than CAPE index as investors' money first go to fix income investment. DSENX should be considered as an enhanced equity index fund and not a balanced fund.
Why is the SPC being used increasingly as a fund structure?
The Cayman Islands continue to be one of the leading offshore jurisdictions for the establishment of hedge funds, private equity funds, real estate funds, and other asset classes. The versatility and efficiency of the SPC structure in terms of the ability to effectively ‘ring fence’ certain assets and liabilities under the same investment portfolio and benefit from statutory recognition of that ring-fencing have made the SPC increasingly attractive in this environment. Like other exempted companies, there are no residency restrictions on Directors or Shareholders of an SPC and there are no Cayman Islands taxes on the SPC or its shareholders.
http://www.loebsmith.com/story/2017/01/09/legal-developments-and-recent-trends-for-cayman-investment-fund-structures/57/
I just thought it beyond droll that Fido using presumably M* data feed would pie-chart it like that. So nuts. This is a prime opp for M* to rejigger their data parsing so as not to imply it's balanced in any sense or anything else along those lines.
At some point in its ranking ascendancy, assuming it continues, M* will have to do an article on it.