February 2017


March 1, 2017 | Permalink
Acting SEC chair Michael Piwowar says relaxing the accredited investor definition would benefit "the forgotten investor." In a speech at the annual SEC Speaks event, he argued that deciding which investors can fend for themselves and which can't "is a line-drawing exercise fraught with peril" and questioned the belief that non-accredited investors are truly protected by regulations shielding them from high-risk, high-return investments. Despite his criticism, Piwowar didn't indicate any changes would be made immediately. In 2016, as part of a regular review required under Dodd-Frank, the SEC proposed several possible changes to the accredited investor definition. However, it remains uncertain what changes, if any, may be adopted.
Related News:
Financial advisers bristle at SEC's pitch to redefine 'accredited investor' - Investment News (reg. req.)
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February 23, 2017 | Permalink
The SEC published information and guidance for investors and the financial services industry on the use of robo-advisers. The SEC's Division of Investment Management issued guidance for investment advisers with suggestions on meeting disclosure, suitability and compliance obligations under the Investment Advisers Act of 1940. It reminded advisers that, while robo-advisers operate under a broad range of business and service models, all are required to follow investment adviser rules, including operating as a fiduciary. A second publication, an Investor Bulletin issued by the SEC's Office of Investor Education and Advocacy, provides individual investors with information they may need to make informed decisions if they consider using robo-advisers, including doing the same research they would before investing with any other financial services firm.
Related News:
SEC provide robo-adviser guidance - Investment News
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February 22, 2017 | Permalink
New York-based Beachhead Capital Management added two of its liquid alternative strategies to Mercury Capital Advisors' iFunds platform. Beachhead's Equity Hedge Dynamic Beta and Managed Futures Dynamic Beta strategies, which seek to offer performance that matches or exceeds leading hedge funds, along with low fees and daily liquidity, are now available on the iFunds system. Beachhead manages approximately $500 million and is the sole sub-advisor of two liquid alternative funds for SEI Investments Company.
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February 16, 2017 | Permalink
A Context Summits survey of more than 200 institutional investors and family office executives found nearly 75% plan to increase their allocations to alternative assets in the year ahead. More than half said they view the alternative asset management industry positively, with 36% taking a neutral stance. A majority - 59% - prefer to invest with emerging managers rather than established managers, indicating a willingness to seek new ideas and strategies. Although investors identified regulatory and political uncertainty and volatility in global markets as being among the potential roadblocks to growth in 2017, Context said the survey results indicate a strong appetite for alternative investing.
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February 16, 2017 | Permalink
Fund Name: AlphaCentric Prime Meridian Income Fund
Adviser: Alphacentric Advisors LLC
Sub-Adviser(s): Prime Meridian Capital Management LLC
Fees: 1.5% Management Fee
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $2,500 minimum initial investment for regular accounts, $1,000 for retirement plan accounts; $100 minimum subsequent investment if made through an automatic investment program, $1,000 for subsequent investments not made through an automatic investment program.
Filing Date: Feb. 13, 2017
Effective Date: Pending
   
Fund Name: Day Hagan Hedged Strategy Fund
Adviser: Donald L. Hagan LLC
Sub-Adviser(s): Pacini Hatfield Investments LLC
Fees: 1.75% Management Fee
Open- or Closed-End: Open-End (Mutual fund)
Investor Restrictions: $1,000 minimum initial investment for regular and IRA accounts, $100 for automatic investment plan accounts; $50 minimum subsequent investment (Class T)
Filing Date: Feb. 1, 2017
Effective Date: Pending
   
Fund Name: Lazard Real Assets and Pricing Opportunities Fund
Adviser: Lazard Asset Management LLC
Sub-Adviser(s): None
Fees: 0.70% Management Fee
Open- or Closed-End: Open-End (Mutual fund)
Investor Restrictions: $100,000 minimum initial investment for institutional shares, $2,500 for open shares; $1 million minimum initial investment for R6 shares
Filing Date: Dec. 14, 2016
Effective Date: Dec. 30, 2016
   
Fund Name: VanEck Coastland Online Consumer Finance Fund
Adviser: Van Eck Associates Corporation
Sub-Adviser(s): Coastland Capital LLC
Fees: Not specified
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $1 million minimum initial investment; minimum subsequent investment not specified.
Filing Date: Dec. 30, 2016
Effective Date: Pending
   
Fund Name: Eaton Vance High Income 2022 Target Term Trust
Adviser: Eaton Vance Management
Sub-Adviser(s): None
Fees: Not specified
Open- or Closed-End: Closed-End (Exchange traded)
Investor Restrictions: Minimum investment of 100 common shares
Filing Date: Dec. 20, 2016
Effective Date: Pending
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February 13, 2017 | Permalink
The CFTC will allow more time for swaps dealers to comply with collateral requirements scheduled to take effect March 1, aiming to ease concerns that global markets could face disruptions without a transition period. In a no-action letter, the CFTC said from March 1 through Sept. 1, it won't recommend enforcement action against dealers for failing to comply with the new rules. The action doesn't delay the effective date, but only allows market participants a grace period. Although thousands of companies have been working to modify legal agreements to comply with the rules, they're unlikely to finish by the March 1 deadline, according to groups including ISDA, GFMA and ABA.
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February 7, 2017 | Permalink
The SEC's Office of Compliance Inspections and Examinations published a risk alert outlining the five most frequent compliance topics identified in deficiency letters sent to registered investment advisers. The OCIE alert said advisers should review their compliance programs and practices with particular attention to the following highlighted topics:
  • Compliance policies and procedures;
  • Required regulatory filings;
  • The "Custody Rule";
  • Codes of ethics; and
  • Books and records.

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February 6, 2017 | Permalink
KKR's Prisma hedge fund allocation unit will merge with fund of hedge funds manager PAAMCO in a strategic deal that creates a $30-billion firm with a significant presence in the fund-of-funds and liquid alternative sectors. The combined business will be named PAAMCO Prisma and will operate independently, although KKR will retain a nearly 40% stake. Employees will own the remaining 60%. The deal is expected to close in Q2, but financial terms weren't disclosed.
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February 6, 2017 | Permalink
Acting SEC chairman Michael Piwowar requested the agency take another look at a Dodd-Frank requirement that companies disclose how top executives’ compensation compares with employees' pay. Piwowar opposed the requirement as an SEC commissioner and now says he may ask staff to review requirements for what information public companies must disclose. The requirements took effect during the fiscal year beginning on or after Jan. 1 this year and require companies to include the information in registration statements, proxy statements and annual reports, which the industry has said isn't information clients require to make investment decisions.
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February 2, 2017 | Permalink
Fund Name: Day Hagan Hedged Strategy Fund
Adviser: Donald L. Hagan LLC
Sub-Adviser(s): Pacini Hatfield Investments LLC
Fees: 1.75% Management Fee
Open- or Closed-End: Open-End (Mutual fund)
Investor Restrictions: $1,000 minimum initial investment for regular and IRA accounts, $100 for automatic investment plan accounts; $50 minimum subsequent investment (Class T)
Filing Date: Feb. 1, 2017
Effective Date: Pending
   
Fund Name: Lazard Real Assets and Pricing Opportunities Fund
Adviser: Lazard Asset Management LLC
Sub-Adviser(s): None
Fees: 0.70% Management Fee
Open- or Closed-End: Open-End (Mutual fund)
Investor Restrictions: $100,000 minimum initial investment for institutional shares, $2,500 for open shares; $1 million minimum initial investment for R6 shares
Filing Date: Dec. 14, 2016
Effective Date: Dec. 30, 2016
   
Fund Name: VanEck Coastland Online Consumer Finance Fund
Adviser: Van Eck Associates Corporation
Sub-Adviser(s): Coastland Capital LLC
Fees: Not specified
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $1 million minimum initial investment; minimum subsequent investment not specified.
Filing Date: Dec. 30, 2016
Effective Date: Pending
   
Fund Name: Eaton Vance High Income 2022 Target Term Trust
Adviser: Eaton Vance Management
Sub-Adviser(s): None
Fees: Not specified
Open- or Closed-End: Closed-End (Exchange traded)
Investor Restrictions: Minimum investment of 100 common shares
Filing Date: Dec. 20, 2016
Effective Date: Pending
   
Fund Name: FS Diversified Income Fund
Adviser: FS Diversified Income Advisor LLC
Sub-Adviser(s): Not specified
Fees: Not specified
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $2,500 minimum investment for regular accounts, $1,000 for retirement plan accounts; $100 minimum subsequent investment for regular accounts, $50 for retirement plan accounts (Class A and C); Minimum initial investment for Class I shares not specified, subsequent investments may be made in any amount.
Filing Date: Dec. 13, 2016
Effective Date: Pending
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February 2, 2017 | Permalink
Fund Name: Day Hagan Hedged Strategy Fund
Adviser: Donald L. Hagan LLC
Sub-Adviser(s): Pacini Hatfield Investments LLC
Fees: 1.75% Management Fee
Open- or Closed-End: Open-End (Mutual fund)
Investor Restrictions: $1,000 minimum initial investment for regular and IRA accounts, $100 for automatic investment plan accounts; $50 minimum subsequent investment (Class T)
Filing Date: Feb. 1, 2017
Effective Date: Pending
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