New York and Philadelphia – iM Global Partner and Dynamic Beta investments (DBi) announce the launch of the iM DBi Managed Futures Strategy ETF, one of the first actively-managed Managed Futures exchange traded funds (ETF) on the market. In a context of markets turmoil, iM Global Partner and DBi are deeply convinced that the iM DBi Managed Futures Strategy ETF should meet investors’ needs of liquidity and transparency.
The Fund’s objective is long-term capital appreciation by investing in multiple asset classes such as equities, fixed income, currencies and commodities through futures and forwards contracts.
The iM DBi Managed Futures Strategy ETF seeks to achieve its objective by utilizing a Managed Futures strategy based on a proprietary quantitative model. The strategy, actively managed, seeks to deliver all or more of the pre-fee performance of CTA hedge funds in a daily liquid1 ETF with reasonable fees. Built on more than ten years of research and live performance, DBi’s proprietary investment strategy seeks to identify key market exposures — across equity, fixed income, currency and commodity markets — of a select pool of leading CTA (managed futures) hedge funds. Based on this analysis, DBi invests directly in long and short positions in the most liquid domestically traded futures contracts. In addition, by targeting the pre-fee performance of the largest CTA hedge funds, the strategy seeks to deliver the lower risk profile of a diversified pool of funds with reasonable fees.
The iM DBi Managed Futures Strategy ETF, which we launched on May 8, 2019, is the first Dynamic Beta investments product developed since iM Global Partner acquired a minority stake in DBi in the third quarter of 2018. The Fund is advised by iM Global Partner and is sub-advised by DBi. iM Global Partner’s experienced distribution team will introduce the Fund to a broad range of investors across wealth management, institutional and other channels.
Jeffrey Seeley, COO and Head of US Distribution of iM Global Partner, said: “Dynamic Beta investments is one of the most innovative managers in the liquid alternatives space with a 10-year plus track record. We are thrilled to offer DBi the extended reach of our iM Global Partner’s multi-asset distribution platform for our new ETF and we look forward to working with DBi and our other U.S. partners to bring further investment vehicles to market.”
Andrew Beer and Mathias Mamou-Mani, both Managing Members of DBi, added: “The iM DBi Managed Futures Strategy ETF is an innovative investment vehicle. The Fund has the potential to deliver the valuable diversification benefits of a portfolio of leading CTA hedge funds to a broader universe of investors2, with reasonable fees, liquidity1 and transparency investors expect from an ETF.”
About the iM DBi Managed Futures Strategy ETF
|Advisor||iM Global Partner US|
|Subadvisor||Dynamic Beta investments|
|Fund Services||US Bancorp|
|Primary Listing Exchange||NYSE|
About iM Global Partner
iM Global Partner is an innovative global multi-boutique platform based in Paris, London and Philadelphia. It partners with unique, independent asset management companies with the joint objective of accelerating their business growth, particularly toward worldwide and multichannel distribution. iM Global Partner currently has strategic minority investments in five asset managers – Polen Capital, Dolan McEniry Capital Management, Sirios Capital Management, Dynamic Beta investments and Scharf Investments – with combined assets under management of $39.2 billion as of April 30, 2019. iM Global Partner represents assets under management of $10 billion in proportion to its participations. iM Global Partner’s strategic shareholders include Eurazeo, a leading European private equity investor, Amundi, the largest asset manager in Europe and Dassault/La Maison, a group of leading private shareholders.
About Dynamic Beta investments
Dynamic Beta investments (formerly branded Beachhead Capital Management) is a New York-based hedge fund advisory firm. Dynamic Beta investments’ main liquid alternative strategies – equity hedge, managed futures and multi-asset/stable return – are designed to outperform actual hedge fund indices by targeting “pre-fee” hedge fund performance through liquid futures and ETFs. Dynamic Beta investments has published extensive research on hedge funds, liquid alternatives and smart beta3.
Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.
The Fund’s investment objectives, risks charges and expenses must be considered carefully before investing. The statutory and summary prospectuses contain this and other important information about the investment company, and it may be obtained by visiting imglobalpartner.com. Read it carefully before investing.
Investing involves risk. Principal loss is possible. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the funds. Brokerage commissions will reduce returns. The Fund is “non-diversified,” so it may invest a greater percentage of its assets in the securities of a single issuer. As a result, a decline in the value of an investment in a single issuer could cause the Fund’s overall value to decline to a greater degree than if the Fund held a more diversified portfolio.
The Fund should be considered highly leveraged and is suitable only for investors with high tolerance for investment risk. Futures contracts and forward contracts can be highly volatile, illiquid and difficult to value, and changes in the value of such instruments held directly or indirectly by the Fund may not correlate with the underlying instrument or reference assets, or the Fund’s other investments.Derivative instruments and futures contracts are subject to occasional rapid and substantial fluctuations. Taking a short position on a derivative instrument or security involves the risk of a theoretically unlimited increase in the value of the underlying instrument. Exposure to the commodities markets may subject the Fund to greater volatility than investments in traditional securities. Exposure to foreign currencies subjects the Fund to the risk that those currencies will change in value relative to the U.S. Dollar. By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. Fixed income securities, or derivatives based on fixed income securities, are subject to credit risk and interest rate risk.
The ETF’s gross expense ratio is 0.85%
1 Liquidity refers to shares of the Fund, not its holdings.
2 The Fund is a “non-diversified” ETF but seeks to achieve its objective by utilizing a Managed Futures strategy. Managed Futures are not correlated to traditional asset classes like equities and fixed income, SG CTA Index correlation to MSCI ACWI ND Index is 0.10 (equities) while SG CTA Index correlation to Bloomberg Barclays Global Aggregate Index is 0.27 (fixed income) over a 10-year period as of end of April 2019, thus providing valuable diversification benefits.
3 Smart Beta is an index-based investment strategy that seeks to generate superior risk-adjusted returns through transparent quantitative techniques and rules-based criteria which are based on specific factors or attributes that drive investment returns.
Diversification does not assure a profit nor protect against loss in a declining market.
The iM DBi Managed Futures Strategy ETF is distributed by Quasar Distributors, LLC.