May 2016


May 26, 2016 | Permalink
The CFTC released a supplemental rule to its December 2013 position limits proposal that will modify the procedures proposed for persons seeking exemptions from speculative position limits for non-enumerated bona fide hedging. It would also define procedures for recognition of certain anticipatory bona fide hedge positions. Specifically, the rule proposes to further amend certain definitions, including the general definition of "bona fide hedging position" for physical commodities under the standards in Commodity Exchange Act section 4a(c). The CFTC also proposed to delay the requirement to establish and monitor position limits on swaps for DCMs and SEFs that lack access to sufficient swap position information.
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May 26, 2016 | Permalink
In a white paper supported financially by the Coalition for Responsible Portfolio Management and submitted to the SEC, Lewis argued that alternative mutual funds don't expose investors to undue risk. Rather, he suggested that funds use derivatives and leverage to realize greater portfolio diversification. According to the white paper, the SEC's proposed rule from late 2015 would "significantly impact" alternative mutual funds' use of derivatives, according to Craig Lewis, a finance professor at the Owen Graduate School of Management at Vanderbilt University. The proposal, which would apply to mutual funds, ETFs, closed-end funds and other entities, would limit funds' use of derivatives and require risk management measures designed to better protect investors.
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May 23, 2016 | Permalink
Ares Capital is purchasing smaller rival American Capital in a cash-and-stock deal valued at $3.4 billion. The deal doesn't include American Capital's mortgage management unit, American Capital Mortgage Management, which will be sold separately to American Capital Agency for $562 million. The deals come about five months after American Capital said it would solicit offers after coming under fire from Elliott Management for its performance and its plan to spin off some assets into a business development company. The hedge fund has a 5.7% stake in the company.
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May 23, 2016 | Permalink
Man Group unit GLG Partners partnered with liquid alternative mutual fund firm American Beacon to launch the American Beacon GLG Total Return Fund. The '40 Act fund is the second the firms have launched together and became effective on May 20. The debt fund will use an absolute-return approach focused on fixed income instruments of issuers in emerging markets, with Man GLG acting as subadviser.
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May 19, 2016 | Permalink
Kramer Levin's Alternative Investment Management Practice will host the Fourth Annual Public Alternative Funds Seminar on Tuesday, May 24, 2016 in New York. The theme of this year's event is "What Are the Distribution Opportunities for Private Fund Managers?" Join us to learn more about:
  • Wirehouse Platforms;
  • RIA Channels;
  • Insurance and Pension Programs; and
  • Subadvising Opportunities.
Click here to learn more and to register.
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May 18, 2016 | Permalink
The SEC proposed increasing the net worth threshold for qualified clients from $2 million to $2.1 million as part of a five-year indexing adjustment required by the Investment Advisers Act of 1940. However, as the required indexing adjustment for the $1-million assets under management threshold is smaller than the amount specified under the act, the SEC isn't proposing a change to that part of the requirements. Comments are being accepted on the proposal until June 13.
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May 16, 2016 | Permalink
BlackRock Advisors closed the reorganization of BlackRock Municipal Bond Investment Trust (BIE) with and into BlackRock Municipal Income Investment Trust (BBF). Under the reorganization, BIE common shareholders received an amount of BBF common stock equal to the total net asset value of their holdings of BIE common stock. Fractional shares of BBF common stock weren't issued and, as a result, cash will be distributed for any such fractional amounts.
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May 13, 2016 | Permalink
The SEC announced a whistleblower award of more than $3.5 million to an employee whose tip bolstered an ongoing investigation with additional evidence of wrongdoing. Andrew Ceresney, director of the SEC's Division of Enforcement, emphasized that whistleblowers are eligible for rewards not only when their tip launches an investigation, but also when they provide information that advances an existing inquiry. The SEC's whistleblower program has now awarded more than $62 million to 28 whistleblowers since its inception in 2011.
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May 13, 2016 | Permalink
Virtus Investment Partners recently liquidated three of its alternative mutual funds: the Virtus Alternative Total Solution Fund; the Virtus Alternative Inflation Solution Fund; and the Virtus Alternative Income Solution Fund. Virtus launched the funds in partnership with Cliffwater in 2014.
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May 6, 2016 | Permalink
The CFTC approved a final rule amending a requirement under Regulation 23.500(i) that swap dealers and major swap participants exchange the terms of swaps with their counterparties for portfolio reconciliation so that SDs and MSPs only need to exchange the "material terms" of swaps. The final rule also amends the definition of "material terms" in Regulation 23.500(g). The final rule will enable SDs, MSPs and their counterparties to focus on reconciling data fields that affect swap valuation and counterparty obligations, while maintaining the CFTC's ability to perform its oversight and regulatory role.
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May 5, 2016 | Permalink
Fund Name: NexPoint Merger Arbitrage Fund
Adviser: NexPoint Advisors LP
Sub-Adviser(s): None
Fees: 1.25% Management Fee (on daily gross assets)
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $500 minimum initial investment for regular accounts, $50 for retirement accounts, $50 minimum subsequent investment (Class A and C); $100,000 minimum initial investment (Class Z)
Filing Date: April 19, 2016
Effective Date: Pending
   
Fund Name: NexPoint Latin American Opportunities Fund
Adviser: NexPoint Advisors LP
Sub-Adviser(s): None
Fees: 1.25% Management Fee (on daily gross assets)
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $500 minimum initial investment for regular accounts, $50 for retirement accounts, $50 minimum subsequent investment (Class A and C); $100,000 minimum initial investment (Class Z)
Filing Date: March 24, 2016
Effective Date: Pending
   
Fund Name: NexPoint Distressed Strategies Fund
Adviser: NexPoint Advisors LP
Sub-Adviser(s): None
Fees: 1.25% Management Fee (on daily gross assets)
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $500 minimum initial investment for regular accounts, $50 for retirement accounts, $50 minimum subsequent investment (Class A and C); $100,000 minimum initial investment (Class Z)
Filing Date: March 24, 2016
Effective Date: Pending
   
Fund Name: First Trust Strategic Mortgage REIT ETF
Adviser: First Trust Advisors LP
Sub-Adviser(s): None
Fees: 0.85% Management Fee
Open- or Closed-End: Open-End (Exchange traded)
Investor Restrictions: Not specified
Filing Date: March 14, 2016
Effective Date: Pending
   
Fund Name: First Trust Long/Short Currency Strategy ETF
Adviser: First Trust Advisors LP
Sub-Adviser(s): First Trust Global Portfolios Ltd.
Fees: Not specified
Open- or Closed-End: Open-End (Exchange traded)
Investor Restrictions: Not specified
Filing Date: March 14, 2016
Effective Date: Pending
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May 5, 2016 | Permalink
Fund Name: NexPoint Merger Arbitrage Fund
Adviser: NexPoint Advisors LP
Sub-Adviser(s): None
Fees: 1.25% Management Fee (on daily gross assets)
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $500 minimum initial investment for regular accounts, $50 for retirement accounts, $50 minimum subsequent investment (Class A and C); $100,000 minimum initial investment (Class Z)
Filing Date: April 19, 2016
Effective Date: Pending
   
Fund Name: NexPoint Latin American Opportunities Fund
Adviser: NexPoint Advisors LP
Sub-Adviser(s): None
Fees: 1.25% Management Fee (on daily gross assets)
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $500 minimum initial investment for regular accounts, $50 for retirement accounts, $50 minimum subsequent investment (Class A and C); $100,000 minimum initial investment (Class Z)
Filing Date: March 24, 2016
Effective Date: Pending
   
Fund Name: NexPoint Distressed Strategies Fund
Adviser: NexPoint Advisors LP
Sub-Adviser(s): None
Fees: 1.25% Management Fee (on daily gross assets)
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $500 minimum initial investment for regular accounts, $50 for retirement accounts, $50 minimum subsequent investment (Class A and C); $100,000 minimum initial investment (Class Z)
Filing Date: March 24, 2016
Effective Date: Pending
   
Fund Name: First Trust Strategic Mortgage REIT ETF
Adviser: First Trust Advisors LP
Sub-Adviser(s): None
Fees: 0.85% Management Fee
Open- or Closed-End: Open-End (Exchange traded)
Investor Restrictions: Not specified
Filing Date: March 14, 2016
Effective Date: Pending
   
Fund Name: First Trust Long/Short Currency Strategy ETF
Adviser: First Trust Advisors LP
Sub-Adviser(s): First Trust Global Portfolios Ltd.
Fees: Not specified
Open- or Closed-End: Open-End (Exchange traded)
Investor Restrictions: Not specified
Filing Date: March 14, 2016
Effective Date: Pending
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