Fund Watch: Franklin K2, Eventide, Columbia, Carlyle and Context

Fund Watch Franklin K2, Eventide, Columbia, Carlyle and ContextIn this edition of Fund Watch, new registration filings from:

  • Franklin K2 Long Short Credit Fund
  • Eventide Multi-Asset Income Fund
  • Columbia Global Unconstrained Bond Fund

And fund liquidations:

  • Merk Hard Currency ETF
  • Carlyle Core Allocation Fund
  • Context Alternative Strategies Fund

Franklin K2 Long Short Credit Fund

On April 17, Franklin Templeton Investments filed paperwork with the Securities and Exchange Commission (SEC) for the launch of the Franklin K2 Long/Short Credit Fund. The fund will employ a multi-manager approach, with investment manager K2 Advisors allocating the fund’s assets to multiple sub-advisors, each employing a different alternative credit strategy.

Although no sub-advisors had been selected as of the filing, the following strategies were listed among those the fund intends to employ:

  • Credit long/short
  • Structured credit
  • Emerging market fixed income

The fund will pursue total returns through a combination of current income, capital preservation, and capital income.

Eventide Multi-Asset Income Fund

Also on April 17, Eventide announced the pending launch of the Eventide Multi-Asset Income Fund, with a preliminary prospectus “subject to completion” dated July 1, 2015. The fund will seek current income while maintaining the potential for capital appreciation with a diversified portfolio of investments that spans asset classes.

Eventide Investments is the fund’s advisor, but lead portfolio manager Martin Wildy, of Eventide, may allocate between 0% and 100% of the fund’s assets with sub-advisor Boyd Waterson Asset Manager and portfolio manager David Dirk. Mr. Dirk is a fixed-income specialist at the sub-advisor.

In addition to seeking current income and capital gains, the Eventide Multi-Asset Income Fund will be guided by core values including “the right to life at all stages” and “freedom from addictive behaviors caused by gambling, pornography, alcohol, and tobacco.”

Columbia Global Unconstrained Bond Fund

Columbia Funds filed a Form N-1A with the SEC on April 16, announcing the planned launch of the Columbia Global Unconstrained Bond Fund. The fund will pursue absolute (positive) returns with a true “go anywhere” bond fund. Practically the only constraint on the fund’s management is that “under normal circumstances,” at least 80% of its assets will be invested in fixed-income securities.

Portfolio managers Jim Cielinski, Martin Harvey, and Gene Tannuzzo will head the fund’s day-to-day operations. Mr. Cielinski is Global Head of Fixed-Income for Columbia Investment Management Advisors.

Merk Hard Currency ETF

On March 26, Forum ETF Trust’s board of trustees approved a plan to liquidate and dissolve the Merk Hard Currency ETF (ticker: MERK). The fund stopped accepting new investments on April 6 and was expected to be fully liquidated a week later, according to the SEC filing.

The fund was registered in 2012 as an ETF equivalent to its mutual fund, the Merk Hard Currency Fund (MERKX). Merk continues to offer the mutual fund, which  “invests in a managed basket of hard currencies from countries with sound monetary policies.”

Carlyle Core Allocation Fund

The board of trustees for Carlyle Select Trust approved the plan of liquidation proposed by Carlyle GMS Investment Management, manager of the Carlyle Core Allocation Fund. The fund immediately became closed to new shareholders and is intended to be fully liquidated by May 18, according to the SEC filing.

As of March 31, the Carlyle Core Allocation Fund’s institutional-class shares (CCAIX) had six-month returns of 0.07%, ranking in the bottom 5% of its Morningstar category. The fund debuted less than one year ago. Despite closing this fund, and not launching a commodities fund that was in registration, word is that Carlyle will be back in the liquid alts market.

Context Alternative Strategies Fund

On April 20, Context Capital Funds filed paperwork with the SEC announcing the planned liquidation of its Context Alternative Strategies Fund. The liquidation is expected to be completed by May 18.

As of March 31, the fund’s one-year returns stood at -1.35%, ranking it in the bottom 11% of funds in its Morningstar category.

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