March 2015


March 27, 2015 | Permalink
Howard Marks, a co-founder of $91-billion investment manager Oaktree Capital Group, issued a letter to investors warning against liquid alternatives. He questioned their perceived liquidity, which he says is "usually illusory, fleeting and unreliable, and it works (like a Ponzi scheme) until markets freeze up." Although liquid alternative products outperformed hedge funds in 2014, Marks said it is "especially dangerous" to believe their liquidity will continue should there be a downturn in the market.
Link To Article read more
March 26, 2015 | Permalink
Fund Name: Archstone Alternative Solutions Fund
Adviser: Archstone Advisory Management LLC
Sub-Adviser(s): None
Fees: 1.2% up to (and including) $1B; 1.1% over $1B and up to (and including) $5B; 1.0% over $5B.
Open- or Closed-End: Closed-End (Possible quarterly repurchase of up to 20%)
Investor Restrictions: Accredited investor
Filing Date: March 19, 2015
Effective Date: Pending
   
Fund Name: Tekla World Healthcare Fund
Adviser: Tekla Capital Management LLC
Sub-Adviser(s): None
Fees: Not specified
Open- or Closed-End: Closed-End (Repurchase at least annually)
Investor Restrictions: None specified
Filing Date: March 10, 2015
Effective Date: Pending
   
Fund Name: BNY Mellon Absolute Insight Funds
Adviser: The Dreyfus Corporation
Sub-Adviser(s): Pareto Investment Management Ltd.
Fees: Not specified
Open- or Closed-End: Open-End (Mutual fund)
Investor Restrictions: None
Filing Date: March 3, 2015
Effective Date: Pending
   
Fund Name: TCW/Gargoyle Hedged Value Fund
Adviser: TCW Investment Management Company LLC
Sub-Adviser(s): Gargoyle Investment Advisor
Fees: 0.9% Annually
Open- or Closed-End: Open-End (Mutual fund)
Investor Restrictions: None
Filing Date: March 10, 2015
Effective Date: Pending
   
Fund Name: The Gabelli Go Anywhere Trust
Adviser: Gabelli Funds LLC
Sub-Adviser(s): None
Fees: Not specified
Open- or Closed-End: Closed-End (Total return fund)
Investor Restrictions: $5,000 Minimum
Filing Date: March 3, 2015
Effective Date: Pending
read more
March 19, 2015 | Permalink
Rothschild Asset Management appointed Michael Woods as its CEO, effective immediately. He was previously head of the Americas for Deutsche Asset & Wealth Management's global client group and CEO of DWS Investments, where he managed its U.S. mutual funds business. He also served as SVP at Evergreen Investment Management Company and was CEO and vice-chairman of the board at XTF Advisors.
Link To Article read more
March 18, 2015 | Permalink
Despite returns that have lagged behind markets in recent years, a report from McKinsey Company states that alternative funds - including hedge funds and public products such as mutual funds and exchange-traded funds - will continue to grow in popularity. The "vast majority of institutional investors intend to either maintain or increase their allocations to alternatives over the next three years," the report says, pointing to the following reasons for alternatives' popularity:
  • Institutional investors are looking for consistent, risk-adjusted returns that aren't connected to market performance and are looking to alternatives for inflation protection and income generation;
  • Alternatives offer a wide range of product offerings to serve diverse investor needs and preferences; and
  • The alternatives market remains highly fragmented, with ample room for new category leaders to emerge.

Link To Article read more
March 16, 2015 | Permalink
SEC commissioner Michael Piwowar outlined three areas of the current U.S. regulatory regime that the markets watchdog may put under the microscope: fund data reporting, in-kind redemptions and temporary suspension of redemptions. Specifically, he said the SEC may decide to revisit the rules surrounding in-kind redemptions, which permit mutual funds to use underlying securities instead of cash in order to satisfy investors' redemption requests during times of stress. The current rules, which haven't been updated for a significant period of time, may include too many restrictions on mutual funds' use of this tool, he said, which can help funds avoid a forced sale of securities. Piwowar made the remarks at the 2015 Mutual Funds and Investment Management Conference in response to concerns expressed about the effect ETFs may have on market stability.
Link To Article read more
March 12, 2015 | Permalink
Fund Name: BNY Mellon Absolute Insight Funds
Adviser: BNY Mellon
Sub-Adviser(s): Pareto Investment Management
Fees: None Specified
Open- or Closed-End: Open-End (Mutual fund)
Investor Restrictions: None
Filing Date: March 3, 2015
Effective Date: Pending
   
Fund Name: TCW/Gargoyle Hedged Value Fund
Adviser: TCW Investment Management Company
Sub-Adviser(s): Gargoyle Investment Advisor
Fees: 0.9% Annually
Open- or Closed-End: Open-End (Mutual fund)
Investor Restrictions: None
Filing Date: March 10, 2015
Effective Date: Pending
   
Fund Name: The Gabelli Go Anywhere Trust
Adviser: Gabelli Funds
Sub-Adviser(s): None Specified
Fees: 1%
Open- or Closed-End: Closed-End (Total return fund)
Investor Restrictions: $5,000 Minimum
Filing Date: March 3, 2015
Effective Date: Pending
   
Fund Name: Vanguard Alternative Strategies Fund
Adviser: Vanguard Group
Sub-Adviser(s): None
Fees: 1.1%
Open- or Closed-End: Open-End (Mutual fund)
Investor Restrictions: Institutional Investors; $250,000 Minimum
Filing Date: Feb. 27, 2015
Effective Date: Pending
   
Fund Name: Context Fundamental Value Long/Short Fund
Adviser: Context Advisors III
Sub-Adviser(s): Omega Advisors
Fees: 2% Management Fee
Open- or Closed-End: Closed-End (Quarterly repurchase offer of 5% of outstanding shares)
Investor Restrictions: $25,000 Minimum
Filing Date: Feb. 17, 2015
Effective Date: Pending
read more
March 11, 2015 | Permalink
Fund Name: TSC/Richard Bernstein Global Thematic Micro-Cap Fund
Adviser: Radiance Asset Management LLC
Sub-Adviser(s): Richard Bernstein Advisors LLC
Fees: Not specified
Open- or Closed-End: Closed-End
Investor Restrictions: $25,000 Minimum
Filing Date: April 3, 2015
Effective Date: Pending
   
Fund Name: Triloma EIG Global Energy Term Fund I
Adviser: Triloma Energy Advisors LLC
Sub-Adviser(s): EIG Credit Management Company LLC
Fees: 2% Management Fee
Open- or Closed-End: Closed-End
Investor Restrictions: $5,000 Minimum
Filing Date: March 20, 2015
Effective Date: Pending
   
Fund Name: Archstone Alternative Solutions Fund
Adviser: Archstone Advisory Management LLC
Sub-Adviser(s): None
Fees: 1.2% up to (and including) $1B; 1.1% over $1B and up to (and including) $5B; 1.0% over $5B.
Open- or Closed-End: Closed-End (Possible quarterly repurchase of up to 20%)
Investor Restrictions: Accredited investor
Filing Date: March 19, 2015
Effective Date: Pending
   
Fund Name: Tekla World Healthcare Fund
Adviser: Tekla Capital Management LLC
Sub-Adviser(s): None
Fees: Not specified
Open- or Closed-End: Closed-End (Repurchase at least annually)
Investor Restrictions: None
Filing Date: March 10, 2015
Effective Date: Pending
   
Fund Name: BNY Mellon Absolute Insight Funds
Adviser: The Dreyfus Corporation
Sub-Adviser(s): Pareto Investment Management Ltd.
Fees: Not Specified
Open- or Closed-End: Open-End (Mutual fund)
Investor Restrictions: None
Filing Date: March 3, 2015
Effective Date: Pending
   
Fund Name: TCW/Gargoyle Hedged Value Fund
Adviser: TCW Investment Management Company
Sub-Adviser(s): Gargoyle Investment Advisor LLC
Fees: 0.9% Annually
Open- or Closed-End: Open-End (Mutual fund)
Investor Restrictions: None
Filing Date: March 10, 2015
Effective Date: Pending
   
Fund Name: The Gabelli Go Anywhere Trust
Adviser: Gabelli Funds LLC
Sub-Adviser(s): None
Fees: Not specified
Open- or Closed-End: Closed-End (Total return fund)
Investor Restrictions: $5,000 Minimum
Filing Date: March 3, 2015
Effective Date: Pending
   
Fund Name: Vanguard Alternative Strategies Fund
Adviser: The Vanguard Group Inc.
Sub-Adviser(s): None
Fees: Not specified
Open- or Closed-End: Open-End (Mutual fund)
Investor Restrictions: Institutional Investors; $250,000 Minimum
Filing Date: Feb. 27, 2015
Effective Date: Pending
   
Fund Name: Context Fundamental Value Long/Short Fund
Adviser: Context Advisers III LLC
Sub-Adviser(s): Omega Advisors Inc.
Fees: 2% Management Fee
Open- or Closed-End: Closed-End (Quarterly repurchase of 5% of outstanding shares)
Investor Restrictions: Qualified clients; $25,000 Minimum
Filing Date: Feb. 17, 2015
Effective Date: Pending
   
Fund Name: Terra Income Fund 6
Adviser: Terra Income Advisors
Sub-Adviser(s): None
Fees: 3% Management Fee
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: Net worth of at least $70,000 and annual gross income of at least $70,000, or a net worth of at least $250,000. $5,000 Minimum.
Filing Date: March 3, 2015
Effective Date: Pending
   
Fund Name: CNL Energy Total Return Fund
Adviser: CNL Energy Fund Advisors LLC
Sub-Adviser(s): None
Fees: Not Specified
Open- or Closed-End: Closed-End
Investor Restrictions: $5,000 Minimum ($4,000 for qualified plans)
Filing Date: Feb. 27, 2015
Effective Date: Pending
   
Fund Name: First Trust Securities Convertible Income Fund
Adviser: First Trust Advisors
Sub-Adviser(s): SSI Investment Management
Fees: Not specified
Open- or Closed-End: Closed-End
Investor Restrictions: None specified
Filing Date: Jan. 5, 2015
Effective Date: Pending
read more
March 4, 2015 | Permalink
In a letter to chair Mary Jo White, the SEC's Advisory Committee on Small and Emerging Companies recommended to the regulator that any changes to the definition of accredited investor should expand, rather than contract, the pool of potential investors. The committee recommended that:
  • The SEC should seek to "do no harm" to the current private offering landscape;
  • Future changes to accredited investor requirements should be based on the consumer price index;
  • The focus should be on stronger enforcement efforts and increased investor education, rather than seeking to protect investors through higher thresholds or the exclusion of some assets when calculating accredited investor status; and
  • Data continue to be collected on the subject for ongoing analysis.

Link To Article read more
March 1, 2015 | Permalink

Overview of Key Mutual Fund Regulations

  • Shares of mutual funds must be priced and be redeemable on a daily basis at their current net asset value per share. (Rule 22c-1 under the Investment Company Act of 1940 (the “1940 Act”).

  • Redemption payments must be made within seven days, and the right of redemption can be suspended only in limited circumstances, such as when the New York Stock Exchange is closed (other than customary weekend and holiday closings) (or when trading on that exchange is restricted). (Section 22(e) of the 1940 Act.)

  • Offering materials must be supplemented or amended at least annually and more frequently if necessary to keep disclosures current and accurate.

  • Mutual funds are limited in their use of leverage and may only borrow from banks (subject to a 300% asset coverage requirement on the amount of such borrowings).

  • Mutual funds may not invest more than 15% of their net assets (10% in the case of money market funds) in illiquid securities (i.e., securities for which market quotations are not readily available, restricted securities and other investments that generally cannot be sold within seven days at approximately the price at which they are carried by the fund).

  • An investor qualification requirement will apply if a mutual fund pays performance-based compensation to its investment adviser (other than a “fulcrum” type performance fee under which the fee increases and decreases ratably based on the performance of the fund in relation to the performance of a designated index) or subadviser. Generally, this qualification requirement would require limiting investors to persons having a net worth of more than $2 million. (Section 205 of the Investment Advisers Act of 1940 (the “Advisers Act”).)
read more