April 2017


May 1, 2017 | Permalink
The Nasdaq Private Markets Alternatives platform will connect buyers and sellers through a fully automated auction-based technology supported by institutional buyers. Participants will conduct due diligence, submit buy and sell bids, execute agreements and facilitate transfer of payment through a single technology. Fund managers will also be able to control which funds participate in the liquidity events. Blockchain technology will be harnessed to help streamline the payment process. Standardized agreements are managed and executed via the platform, and final settlement amounts are calculated and payment is facilitated through NPM's registered broker-dealer.
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May 1, 2017 | Permalink
To help meet daily valuation and liquidity demands of plan executives on the private equity side, Partners Group launched a strategy that includes an allocation to liquid assets. Robert Collins, managing director, investment solutions Americas at Partners Group, said 70% of the firm's strategy is invested in a "diversified, true private equity portfolio," but includes a 30% allocation to listed private markets for liquidity. The strategy is structured as a collective investment trust and is intended to be used in a professionally managed portfolio, such as a target-date fund. "Many plan sponsors today are exploring ways to bring the best parts of a DB portfolio to DC," Collins said. However, he believes the litigation-heavy environment has kept U.S. asset owners and large target-date providers from adopting the strategy.
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April 27, 2017 | Permalink
Fund Name: Tortoise Essential Assets Income 2024 Term Fund
Adviser: Tortoise Capital Advisors LLC
Sub-Adviser(s): Tortoise Credit Strategies LLC
Fees: Not specified
Open- or Closed-End: Closed-End (Exchange traded)
Investor Restrictions: Minimum investment of 100 common shares
Filing Date: April 24, 2017
Effective Date: Pending
   
Fund Name: XAI Octagon Floating Rate Income & Credit Alternative Trust
Adviser: XA Investments LLC
Sub-Adviser(s): Octagon Credit Investors LLC
Fees: Not specified
Open- or Closed-End: Closed-End (Exchange traded)
Investor Restrictions: Not specified
Filing Date: April 7, 2017
Effective Date: Pending
   
Fund Name: USQ Core Real Estate Fund
Adviser: Union Square Capital Partners LLC
Sub-Adviser(s): None
Fees: Not specified
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $2,500 minimum initial investment, $100 minimum subsequent investment (Class IS); $25,000 minimum initial investment, $100 minimum subsequent investment (Class I)
Filing Date: April 6, 2017
Effective Date: Pending
   
Fund Name: NB Crossroads Private Markets Fund V (TE)
Adviser: Neuberger Berman Investment Advisers LLC
Sub-Adviser(s): NB Alternatives Advisers LLC
Fees: The Fund, through its investment in the Master Fund, will indirectly bear the management fees and carried interest allocations (or equivalent) of the Portfolio Funds; the expenses of the Portfolio Funds, including without limitation, investment-related expenses, non-investment related interest expense, administrative expenses and fees and disbursements of attorneys and accountants engaged on behalf of the Portfolio Fund and other ordinary and extraordinary expenses.
Open- or Closed-End: Closed-End (Feeder fund)
Investor Restrictions: Accredited investors and qualified clients; $50,000 minimum investment
Filing Date: March 31, 2017
Effective Date: Pending
   
Fund Name: FS Global Credit Opportunities Fund-T2
Adviser: FS Global Advisor LLC
Sub-Adviser(s): GSO Capital Partners LP
Fees: Management Fee calculated and payable quarterly in arrears at the annual rate of 2% of the Fund's average daily gross assets during such period.
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $5,000 minimum initial investment, $500 minimum subsequent investment; Investors are required to have either: (i) a net worth - not including home, furnishings and personal automobiles - of at least $70,000 and an annual gross income of at least $70,000; or (ii) a net worth - not including home, furnishings and personal automobiles - of at least $250,000.
Filing Date: March 28, 2017
Effective Date: Pending
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April 21, 2017 | Permalink
Acting SEC chairman Michael Piwowar says the agency should be tasked with writing its own fiduciary rule to govern advice stockbrokers provide to retail investors. The comments suggest he favors the industry's call to replace the Labor Department's rule with one businesses would find less onerous, the Wall Street Journal reports. While the Trump administration has postponed implementation of the measure, it remains unclear whether it plans to modify or repeal it.
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April 20, 2017 | Permalink
Acting SEC enforcement director Stephanie Avakian says the agency may file formal enforcement actions against public companies that fall short of cyber incident and risk reporting requirements. While the agency has yet to do so since issuing guidance on the topic in 2011, Avakian told a recent panel session of the International Association of Privacy Professionals' Global Privacy Summit she could foresee circumstances where it would be necessary to file suit. Despite the SEC's willingness to pursue an enforcement action, Avakian also sought to reassure it would not target companies that make "good faith disclosure decisions" that nonetheless fall short of expectations.
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April 18, 2017 | Permalink
Liquid alternative funds continued to attract capital from investors into the start of 2017, according to the Q1 2017 edition of the Wilshire Liquid Alternatives Industry Monitor. AUM in the liquid alternatives realm increased by $17.6 billion during the quarter, Wilshire found, while assets increased through a combination of organic growth, capital flows and new entrants - including new fund launches and pre-existing funds or strategies that were reclassified as liquid alternatives during the quarter. Seven new liquid alternative funds were launched in Q1 2017, including three equity hedge funds, two relative value funds and one global macro fund and multi-strategy fund each. Net capital inflows combined for approximately $3.6 billion during the quarter.
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April 17, 2017 | Permalink
The DOL's fiduciary rule will spur more than 3,500 mutual funds to launch a new low distribution fee share class for broker-sold IRA accounts, according to a Morningstar study. Maximum front-end loads for the most common type of share sold through a broker, Class A, cost an average of 4.85% of the investment, stated the report. In contrast, new Class T shares will cost 2.5% or less, and another new class, so-called "clean" shares, would eliminate the fees entirely at the fund level, the research firm found. The T shares (transactional) allow advisors to continue collecting commissions from funds on their platforms that adopt a consistent agreed-upon fee model. Clean shares, on the other hand, open more options for fee-only fiduciaries to establish and charge their clients according to their own rate models. The investment research firm submitted the white paper to the DOL, following the department's 60-day delay in implementing the fiduciary rule.
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April 13, 2017 | Permalink
Fund Name: XAI Octagon Floating Rate Income & Credit Alternative Trust
Adviser: XA Investments LLC
Sub-Adviser(s): Octagon Credit Investors LLC
Fees: Not specified
Open- or Closed-End: Closed-End (Exchange traded)
Investor Restrictions: Not specified
Filing Date: April 7, 2017
Effective Date: Pending
   
Fund Name: USQ Core Real Estate Fund
Adviser: Union Square Capital Partners LLC
Sub-Adviser(s): None
Fees: Not specified
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $2,500 minimum initial investment, $100 minimum subsequent investment (Class IS); $25,000 minimum initial investment, $100 minimum subsequent investment (Class I)
Filing Date: April 6, 2017
Effective Date: Pending
   
Fund Name: NB Crossroads Private Markets Fund V (TE)
Adviser: Neuberger Berman Investment Advisers LLC
Sub-Adviser(s): NB Alternatives Advisers LLC
Fees: The Fund, through its investment in the Master Fund, will indirectly bear the management fees and carried interest allocations (or equivalent) of the Portfolio Funds; the expenses of the Portfolio Funds, including without limitation, investment-related expenses, non-investment related interest expense, administrative expenses and fees and disbursements of attorneys and accountants engaged on behalf of the Portfolio Fund and other ordinary and extraordinary expenses.
Open- or Closed-End: Closed-End (Feeder fund)
Investor Restrictions: Accredited investors and qualified clients; $50,000 minimum investment
Filing Date: March 31, 2017
Effective Date: Pending
   
Fund Name: FS Global Credit Opportunities Fund-T2
Adviser: FS Global Advisor LLC
Sub-Adviser(s): GSO Capital Partners LP
Fees: Management Fee calculated and payable quarterly in arrears at the annual rate of 2% of the Fund's average daily gross assets during such period.
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $5,000 minimum initial investment, $500 minimum subsequent investment; Investors are required to have either: (i) a net worth - not including home, furnishings and personal automobiles - of at least $70,000 and an annual gross income of at least $70,000; or (ii) a net worth - not including home, furnishings and personal automobiles - of at least $250,000.
Filing Date: March 28, 2017
Effective Date: Pending
   
Fund Name: AllianzGI Convertible & Income 2024 Target Term Fund
Adviser: Allianz Global Investors U.S. LLC
Sub-Adviser(s): Not specified
Fees: Not specified
Open- or Closed-End: Closed-End (Exchange traded)
Investor Restrictions: Minimum investment of 100 common shares
Filing Date: March 24, 2017
Effective Date: Pending
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April 12, 2017 | Permalink
The CFTC appointed N. Charles Thornton III as director of the Office of Legislative Affairs. He joins the CFTC from the U.S. Senate Agriculture, Nutrition and Forestry Committee, where he served as senior professional staff and counsel. Thornton assumed the role on April 17.
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April 11, 2017 | Permalink
American Century Investments added to its liquid alternative investment line-up with the AC Alternatives Disciplined Long Short Fund. The firm says the fund is designed to help clients mitigate risk in their portfolios, while also providing diversification and "the potential for more consistent returns over a full market cycle." The fund, previously launched in 2011 as Disciplined Growth Plus, is the sixth in the AC Alternatives portfolio. It has been restructured as a long-short equity product and will offer a variable net exposure to equities ranging from 30% to 70%, according to the firm.
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April 10, 2017 | Permalink
According to an Accenture poll, 89% of compliance executives with global financial services firms expect their companies to foot a much steeper bill to address compliance issues within the next couple of years. Specifically, 48% of the compliance executives surveyed who anticipate a spending hike say the costs could increase by about 10% to 20%, while 18% say the expenses could mount by more than 20%, all within the next two years. Risks associated with fraud and financial crime, cyberattacks and everyday business were cited as the most challenging and most expensive issues compliance must tackle.
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April 7, 2017 | Permalink
Peter Driscoll, acting director of the SEC's Office of Compliance Inspections and Examinations, said the agency is exploring ways to strengthen compliance at independent advisers. Speaking at a conference in Washington, D.C., Driscoll said financial advisers on the staff of an advisory firm are more likely to comply with securities regulations than their independent counterparts and he's looking for ways to "get more leverage on independent representatives," which could include issuing a risk alert on the topic. He further distinguished between W-2 advisers on staff at a firm and independent advisers who remain affiliated with the firm but operate on their own. Specific problem areas for the SEC include books and records and custody of client funds, he said, adding his concerns involve both independent investment advisers as well as independent broker-dealers.
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April 6, 2017 | Permalink
A report by alternative investment manager Beachhead Capital Management urges the next generation of liquid alternative funds to focus on asset allocators' needs when devising their portfolios. The report explores why many investors were looking for more from the first generation of liquid alternative mutual funds - created after the financial crisis - as well as what possible improvements might be made going forward. It suggests future liquid alternative products should focus on the fact asset allocators require products to match or outperform long-term capital markets assumptions for hedge funds, as well as deliver consistent relative performance and keep fees low and expenses low.
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April 5, 2017 | Permalink
The Department of Labor issued a final rule on Apr. 4 postponing the applicable date for its fiduciary rule from Apr. 10 to June 9. The 60-day delay was preferable to "simply granting a flat delay of fiduciary status and all associated obligations for a protracted period," the DOL said. The DOL is accepting public comment through Apr. 17 on the examination and more general questions concerning the fiduciary rule.
Related News:
Independent broker dealers moving toward fiduciary rule, despite DOL delay - Wealth Management
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