January 2016


January 28, 2016 | Permalink
Fund Name: NexPoint Real Estate Strategies Fund
Adviser: NexPoint Advisors LP
Sub-Adviser(s): None
Fees: 1.25% Management Fee
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $2,500 minimum initial investment (Class A and C); $100,000 minimum initial investment (Class Z); $50 minimum initial investment (retirement accounts); $50 minimum subsequent investments
Filing Date: Jan. 19, 2016
Effective Date: Pending
   
Fund Name: Direct Lending Income Fund
Adviser: Direct Lending Income Fund Advisors LLC
Sub-Adviser(s): None
Fees: 1% Management Fee
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $25,000 minimum initial investment; $5,000 minimum subsequent investment
Filing Date: Dec. 31, 2015
Effective Date: Pending
   
Fund Name: Stone Ridge Trust V
Adviser: Stone Ridge Asset Management LLC
Sub-Adviser(s): None
Fees: Not specified
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $15 million minimum initial investment for institutional investors and their clients; No minimum for other client groups
Filing Date: Dec. 11, 2015
Effective Date: Pending
   
Fund Name: Sound Point Alternative Income Fund
Adviser: Sound Point Capital Management LP
Sub-Adviser(s): None
Fees: Not specified
Open- or Closed-End: Closed-End
Investor Restrictions: None specified
Filing Date: Dec. 11, 2015
Effective Date: Pending
   
Fund Name: NorthStar Global Corporate Income Master Fund
Adviser: NSAM B-CEF Ltd.
Sub-Adviser(s): OZ Institutional Credit Management LP
Fees: 2% Management Fee
Open- or Closed-End: Closed-End (Quarterly repurchase; Master fund)
Investor Restrictions: Accredited investor
Filing Date: Dec. 7, 2015
Effective Date: Pending
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January 27, 2016 | Permalink
In response to the growing market for registered private equity fund products, Altegris Advisors is targeting a 2016 launch for a private debt-themed vehicle. The firm may also explore other opportunities, including venture capital or growth equity, according to CEO and CIO Jack Rivkin, who says the registered funds have, to this point, largely been confined to the buyout space. Rivkin says the market exists for more focused funds across various sub-segments, with private credit providing the most promising opportunity due to the larger number of fund managers in the lending space and the anticipation that distressed debt investing will continue to thrive amid market instability.
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January 20, 2016 | Permalink
Susan Nash, associate director of the SEC's Division of Investment Management, will leave the agency at the end of January. She was instrumental in the creation of disclosure policy for mutual funds and other investment companies while at the SEC, including the mutual fund summary prospectus, improvements to fee and performance disclosures, electronic document delivery, harmonization of SEC and CFTC requirements for dual registrants, tailored disclosure requirements for variable life insurance, and implementation of Sarbanes-Oxley Act requirements. Nash also played a leadership role in the SEC's engagement with the Financial Stability Oversight Council on the analysis of potential financial stability risks posed by asset management activities and products.
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January 20, 2016 | Permalink
The Supreme Court granted a review of a case that could settle a dispute regarding what prosecutors must prove to obtain an insider trading conviction. While the justices declined to review the U.S. Court of Appeals for the Second Circuit decision in U.S. v. Newman in October, which overturned two convictions for insider trading, it has now decided to review a decision by the U.S. Court of Appeals for the Ninth Circuit ruling in U.S. v. Salman, which upheld a conviction for trading on inside information. The California case involves trades Bassam Salman made based on information from his future brother-in-law, then a member of Citigroup's healthcare investment banking group. At question is whether prosecutors in the case were required to prove that the brother-in-law disclosed the information in exchange for a personal benefit. The Supreme Court's 1983 decision in Dirks v. SEC stated that "the test is whether the insider personally will benefit, directly or indirectly, from his disclosure."
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January 19, 2016 | Permalink
Denver-based alternative fund firm Equinox Fund Management agreed to settle SEC charges that the firm overcharged management fees and misled investors about how it valued certain assets. The firm agreed to refund investors for approximately $5.4 million in excessive management fees collected during a seven-year period, plus $600,000 in prejudgment interest. Equinox also agreed to pay a $400,000 penalty. An SEC investigation revealed that Equinox calculated management fees contrary to the method described in registration statements for a managed futures fund and the firm also deviated from its disclosed valuation methodology for some of the fund's holdings.
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January 14, 2016 | Permalink
Fund Name: GoodHaven Funds Trust
Adviser: GoodHaven Capital Management LLC
Sub-Adviser(s): None
Fees: 0.9% Management Fee
Open- or Closed-End: Open-End (Mutual fund)
Investor Restrictions: $10,000 minimum initial investment, $1,000 minimum subsequent investment (Regular accounts); $2,500 minimum initial investment, $1,000 minimum subsequent investment (Retirement accounts)
Filing Date: Jan. 8, 2016
Effective Date: Pending
   
Fund Name: Direct Lending Income Fund
Adviser: Direct Lending Income Fund Advisors LLC
Sub-Adviser(s): None
Fees: 1% Management Fee
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $25,000 minimum initial investment; $5,000 minimum subsequent investment
Filing Date: Dec. 31, 2015
Effective Date: Pending
   
Fund Name: American Funds Emerging Markets Bond Fund
Adviser: Capital Research and Management Company
Sub-Adviser(s): None
Fees: Not specified
Open- or Closed-End: Open-End (Mutual fund)
Investor Restrictions: $250 minimum initial investment; $50 minimum subsequent investment
Filing Date: Dec. 18, 2015
Effective Date: Pending
   
Fund Name: Stone Ridge Trust V
Adviser: Stone Ridge Asset Management LLC
Sub-Adviser(s): None
Fees: Not specified
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $15 million minimum initial investment for institutional investors and their clients; No minimum for other client groups
Filing Date: Dec. 11, 2015
Effective Date: Pending
   
Fund Name: Sound Point Alternative Income Fund
Adviser: Sound Point Capital Management LP
Sub-Adviser(s): None
Fees: Not specified
Open- or Closed-End: Closed-End
Investor Restrictions: None specified
Filing Date: Dec. 11, 2015
Effective Date: Pending
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January 14, 2016 | Permalink
The Pomona Investment Fund, private equity firm Pomona Capital's closed-end '40 Act fund, acquired eight private equity investment funds via two secondary transactions. The fund's portfolio is comprised of 100% secondary interests and has exposure to 27 underlying funds managed by 16 GPs. It primarily targets investments in secondary interests in private equity funds that focus on mature, high-quality assets at attractive prices, diversified by sector, industry and geography.
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January 11, 2016 | Permalink
Although stock markets started off 2016 with a historically bad opening week, liquid alternative funds have demonstrated their potential value during such periods of instability. For example, funds in the managed futures category gained 1.21% in the first week of trading, outperforming all but four of the more than 90 fund categories tracked by Morningstar. Managers say that strategies aimed at trends in currencies, commodities, interest rates and stocks aren't affected by the overall direction of the market, making them an effective addition to investors' traditional portfolios.
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January 11, 2016 | Permalink
The SEC released its Office of Compliance Inspections and Examinations' (OCIE) 2016 examination priorities, which include such new areas as liquidity controls, public pension advisers, product promotion, as well as ETFs and variable annuities. The priorities also reflect an ongoing focus on protecting investors in risk areas such as cybersecurity, microcap fraud, fee selection and reverse churning. The priorities address issues across several financial institutions, including investment advisers, investment companies, broker-dealers, transfer agents, clearing agencies and national securities exchanges.
Areas of examination include:
  • Protecting Retail Investors - OCIE will continue several 2015 initiatives to assess risks to retail investors seeking information, advice, products and services to help them plan for and live in retirement. It also will undertake examinations to review ETFs and ETF trading practices, variable annuity recommendations and disclosure, and potential conflicts and risks involving advisers to public pension funds;
  • Market-Wide Risks - OCIE will continue its focus on cybersecurity controls at broker-dealers and investment advisers. New initiatives for 2016 include an evaluation of broker-dealers' and investment advisers' liquidity risk management practices, as well as compliance with the SEC's Regulation SCI, designed to strengthen technology infrastructure in securities markets; and
  • Data Analytics - OCIE's enhanced ability to analyze large amounts of data will assist examiners' ongoing initiatives to assess anti-money laundering compliance, detect microcap fraud and review for excessive trading. Data analytics also will help examinations that are focused on the promotion of new, complex and high-risk products.
Related News:
FINRA's 2016 focus: Supervision, liquidity and securities firms' culture - FINRA
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January 11, 2016 | Permalink
On Jan. 1, Societe Generale Prime Services launched a performance benchmark for 1940 Act U.S.-registered mutual funds that utilize managed futures strategies. The SG CTA Mutual Fund Index is the company's fourth daily index. It calculates the daily rate of return for an equally weighted group of the largest CTAs by assets open to new investment. The index calculates values based on institutional share classes' performance with dividends reinvested, and three years of performance history will be provided at inception.
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January 4, 2016 | Permalink
Balter Capital Management converted two existing hedge funds into liquid mutual fund wrappers. The firm's Balter Liquid Alternatives unit launched the Balter European L/S Small Cap Fund (BESMX) and the Balter Event-Driven Fund (BEVIX). The Balter European L/S Small Cap Fund is sub-advised by London-based S. W. Mitchell Capital and has an annualized return of 10.6% as a hedge fund. The Balter Event-Driven Fund is sub-advised by New York-based Tiburon Capital Management and has an annualized return of 8.3%
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