Liquid Alternative investments have emerged over the past decade as one of the fastest-growing areas within asset management. As pensions, endowments, foundations and other institutional investors have long benefited from Alternative Investments within their portfolios, Liquid Alternatives enable investors to have access to alternative investment strategies in fund structures that provide daily liquidity, full transparency, low investment minimums and other key attributes for investors. DailyAlts is your source for the most up-to-the-minute news, commentary and analysis on the global market for Liquid Alternatives.
Waratah Capital Advisors Ltd, a Canadian alternative investment manager, announced Monday its launch of the Waratah Alternative ESG Fund. The mutual fund is Waratah’s second liquid alternative offering, and is powered by the firm’s alternative ESG strategy.
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Private equity player Genstar Capital played a catalytic role in bringing about a merger of platform provider Orion Advisor Solutions with investment manager Brinker Capital to form an entity with an estimated $40 billion in managed assets.
Liquid Alternatives: Rhode Island Pension Gains from Liquid Alts; Adds Wilshire Veteran Andrew Junkin
The Rhode Island pension system beat the median U.S. public pension plan by 4.2% during the first quarter of 2020, according to data from Investment Metrics. That ranked the fund 28th among the 546 public pension funds across the country. Even during the coronavirus mayhem in the markets, the Rhode Island pension fell 9.6% compared to the decline of 13.8% of the median pension plan.
Canadian fund manager IG Wealth Management has launched four new managed funds that were available for purchase effective June 22. The funds, dubbed iProfile Portfolios, will suit a wide variety of investor profiles and preferences, enhance their financial confidence, and help them achieve long-term investment goals. The iProfile Portfolios include various investment options such as active allocation, passive ETFs, liquid alternatives and unique private assets.
Mackenzie Investments launched today the Mackenzie Alternative Enhanced Yield Fund which generates returns using alternative strategies to build a diversified portfolio.
This figure surpassed the 1.44% return from the HFRX Global Hedge Fund Index in May. According to HedgeWeek, the index aims “to deliver precise market measures for the performance of diversified liquid alternative investment strategies implemented through mutual fund structures, backed by a proprietary classification methodology.”
Investors are increasingly interested in targeted strategies inside an ETF product. More than half of ETF launches thus far in 2020 have been actively managed ETFs, observed Yones on CNBC’s ETF Edge. This year, therefore, might well turn out to be a breakout year for actively managed funds, according to Yones.
Blackstone Liquid Alternative Fund Drops H2O As Sub-Adviser. The $6.1 billion Blackstone Alternative Multi-Strategy Fund had not allocated any funds to H2O over the past two years.
According to a Bloomberg report, which quoted a person familiar with the situation, the decision to dump H2O was not related to performance. H2O is a majority-owned unit of French company Natixis SA and is run by Bruno Crastes and Vincent Chailley.
CI Investments has launched the CI Marret Alternative Enhanced Yield Fund, available both as a mutual fund and as an ETF. The funds intend to generate an attractive yield while protecting the principal.
Here are the key takeaways from etf.com’s interview with Sal Bruno, chief investment officer of IndexIQ.
Volatile equity markets and declining fixed income yields have turned the traditional 60:40 portfolio allocation between stocks and bonds on its head. According to one study, an investor would today need to allocate 83% to equity, 15% to real estate, and only 2% to bonds to earn a similar rate of return as a couple of decades ago. Unfortunately, such a high component of equity would push up the portfolio’s volatility and risk to unacceptable levels. Liquid alts can be the solution to this dilemma.
American retail sales plunged to a record low in April. It is a reflection of the dire straits that the retail industry is in due to the coronavirus pandemic. US retail sales fell by 16.4% in April, following up on an 8.3% decline in March. This is the largest two-month plunge on record. The virus scare may be the last straw on the camel’s back, as far as America’s already struggling retail industry is concerned. To put salt to injury, online sales grew 8.4% in April.
Lyxor International Asset Management has launched a clutch of five thematic ETFs that seek to capture megatrends unfolding globally, particularly after the COVID-19 crisis. Investors looking for gains beyond the pale of the conventional sector and market-cap-weighted funds could consider investing in these funds. These megatrend ETFs span themes such as the growth of the digital economy and disruptive technology, urban change with future mobility and smart cities, and the consumption habits of millennials.
The Wall Street Journal revealed Tuesday that Uber (NYSE: UBER) is pursuing a takeover of food delivery service Grubhub (NYSE: GRUB) in an all-stock deal. In fact, talks started earlier this year, and according to Bloomberg, the deal could be consummated as early as this month. If successful, Uber’s play for Grubhub would be a gamechanger for the food delivery sector.
“Fallen angel” corporate bonds that have taken a rating hit may be supported by the corporate bond ETF purchase program envisaged in the Secondary Market Corporate Credit Facility (SMCCF). The facility is scheduled to kick in today. ETFs holding these fallen angels, whose ratings fell from investment grade to speculative or junk grade due to COVID, maybe the earlier targets in the program. The Fed could buy up to $750 billion under the SMCCF, as well as the Primary Market Corporate Credit Facility (PMCCF).
Lockdowns and social distancing ushered in a new paradigm for digital payments, and PayPal will benefit hugely.
PayPal (NASDAQ: PYPL) has been on a high after it declared its Q1 numbers and President and CEO Dan Schuman revealed on the earnings call that April turned out to be PayPal’s strongest month since its IPO. A look at ETFs that hold PayPal.
The Global X Cannabis ETF (NASDAQ: POTX) has bounced back smartly from its mid-March, corona-induced price swoon to $6.50. In a high-volume rebound, the ETF rose to $10.64, and thereafter it has moved sideways. However, it is currently ruling above the 50-day moving average, and increasingly it looks like it will soon resume its rally. Though the ETF was punished along with the rest of the market, things may have improved for cannabis fundamentally.
Shariah is Islamic religious law that prohibits the earning of interest income. Therefore, the usual Western debt instruments such as bonds are not workable for Muslim investors. The Sukuk is an innovative structure that was introduced in 2000 in Malaysia. The SP Funds Dow Jones Global Sukuk ETF (NYSE: SPSK), is the first to offer access to Sukuk investments, a new asset class, in an ETF.
Members of the House Municipal Finance Caucus have written to the Fed to buy municipal bonds of terms up to 30 years. The move comes as states’ finances are badly hit by the coronavirus and the municipal bond market is still struggling after it shut down to new issues in March. Separately, in a previously announced move intended to support credit markets, the Fed is gearing up to commence, as early as this month, two emergency corporate lending programs. These would buy up to $750 billion in debt and ETFs.
Investors who were bottom-fishing the airlines’ sector via the U.S. Global Jets ETF (NYSEARCA: JETS) are likely to view today’s (Monday) trading with some trepidation. Buffett, one of the world’s most respected and emulated investors, said over the weekend that he’d had it with airlines. Berkshire Hathaway (NYSE: BRK.A) now has zero exposure to the pandemic-hit U.S. airline sector.
Somebody had to ride the trend. On April 21, ETF distributor Pacer Financial filed with the SEC to launch its Pacer BioThreat ETF, with the highly expressive ticker of VIRS. (FINANCIAL ADVISOR)
On April 24, ETF Managers Trust filed with the SEC for its ETFMG BIO ETF.
These are ‘biothreat’ themed ETFs are obviously trying to ride the trend of the coronavirus pandemic.