Brinker Capital recently announced the formal launch of three new alternative mutual funds that utilize the same strategies that have been available on their separately managed account platform since 2008. The new funds are the Crystal Strategy Absolute Income Fund, the Crystal Strategy Absolute Return Fund and the Crystal Strategy Leveraged Alternative Fund. Each fund is designed to mirror the investment strategy of the firm’s Crystal Strategy suite of global macro funds. Brinker plans to market the funds primarily through the insurance-based and independent broker dealer channels as well as through registered investment advisors. As of today, the funds are available via the Fidelity IWS and NFS, Pershing, Schwab, TD Ameritrade and LPL custodial platforms, according to a statement from the company.
In 2009, Brinker Capital launched The Brinker Capital Crystal Strategy I, one of the investment industry’s first absolute return portfolios embedded in a separately managed account format, as a means of helping financial advisors preserve client capital in down markets while capturing appreciation in up markets. Crystal Strategy I, which is managed by Brinker’s in-house investment management team, performs like a traditional absolute return investment, but has lower fees in comparison with many funds, and offers daily liquidity, daily transparency into account holdings, and an investment minimum of just $100,000.
It is on this same strategy that Brinker Capital’s three new liquid alternative mutual funds are based.
We had high expectations for Crystal Strategy when we launched it four years ago, but the reception of financial advisors and their clients to the product surpassed anything we could have imagined. Over past several years, we’ve had requests from numerous advisors for Crystal Strategy in a mutual fund format, only with lower investment minimums. Our new funds are an answer to their requests.
~ John Coyne, Vice Chairman of Brinker Capital
The three funds each have their own specific investment strategies and places within an investment portfolio, but they do share certain characteristics, including broad asset class exposure, diverse strategies, highly-focused stock selection and portfolio hedging and risk management. Additionally, each fund comprises three traditional (domestic equity, international equity, fixed income) and three non-traditional asset classes (private equity, absolute return, real assets). The investment minimum is $1,000 for Class A shares of each fund.
- The Crystal Strategies Absolute Income Fund (CSTFX) seeks to provide current income and downside protection to conventional equity markets with absolute (positive) returns over full market cycles as a secondary objective.
- The Crystal Strategies Absolute Return Fund (CSRAX) seeks to provide positive (absolute) returns over full market cycles.
- The Crystal Strategies Leveraged Alternative Fund (CSLFX) seeks to provide long-term positive absolute return with reduced correlation to conventional equity markets as a secondary objective.
With these three funds, Brinker is clearly stepping further into the liquid alts ring and making its investment strategies available to a much broader universe of investors.