Low Correlation Strategy Proves Well-Suited
for Market Volatility
iM DBi Managed Futures Strategy ETF (DBMF), one of the
first actively-managed Managed Futures exchange traded funds (ETF)
on the market, celebrates its one year anniversary. The ETF was
launched by iM Global Partner US and Dynamic Beta investments (DBi)
on May 8, 2019, and its 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 Liquid Alternatives marketplace is a crowded one, but
advisors and investors will always have room for differentiated,
diversified, transparent, and well-designed products with low
correlation to traditional asset classes,” said Jeffrey Seeley,
Deputy CEO and COO of iM Global Partner US. “We are delighted that
the iM DBi Managed Futures Strategy ETF has hit the one year mark
having proved its value and served as an important diversifier and
provider of uncorrelated returns for clients in 2019 and the
volatile start to 2020.”
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 an ETF with reasonable fees. Built on more than 10
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.
“iM Global Partner and DBi launched this ETF a year ago with the
goal of reaching a broad universe of investors by combining
reasonable fees, liquidity and transparency of an ETF with the
diversification benefits of a portfolio of leading managed
futures-focused CTA hedge funds1,” said Andrew Beer, Managing
Member of DBi.
“It is a distinct, innovative product, and in a tumultuous year
in the market where uncorrelated sources of return have been
crucial, it has served an important role for investors,” said
Mathias Mamou-Mani, Managing Member of DBi.
As of 3/31/20
As of 5/7/20
DBMF Performance
NAV
Market Price Return
NAV
Market Price Return
One-Month
1.03%
1.30%
1.97%
1.76%
Three-Month
-0.08%
0.16%
-0.98%
-1.29%
Year-to-Date
-0.08%
0.16%
1.90%
2.14%
One-Year
N/A
N/A
12.86%
13.07%
Since Inception
(5/7/20 annualized)
10.67%
8.15%
12.86%
13.07%
The performance data quoted represents past performance. Past
performance does not guarantee future results. The investment
return and principal value of an investment will fluctuate so that
an investor’s shares, when sold or redeemed, may be worth more or
less than their original cost and current performance may be lower
or higher than the performance quoted. Short term performance in
particular, is not a good indication of the fund’s future
performance and an investment should not be made based solely on
returns. Performance data current to the most recent month end may
be obtained by calling 888.898.1041.
The iM DBi Managed Futures Strategy ETF, which launched on May
8, 2019, was 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 US
and is sub-advised by DBi. iM Global Partner’s experienced
distribution team continues to introduce the ETF to a broad range
of investors across wealth management, institutional and other
channels.
About the iM DBi Managed Futures
Strategy ETF
Ticker
DBMF
CUSIP
56170L828
ISIN code
US5617L8283
Advisor
iM Global Partner US
Subadvisor
Dynamic Beta investments
Fund Services
US Bancorp
Distributor
Quasar Distributors
Primary Listing Exchange
NYSE
About iM Global Partner
iM Global Partner is a global multi-boutique platform with main
offices based in Paris, London and Philadelphia. iM Global Partner
partners with highly talented entrepreneurial asset management
companies with the joint objective of accelerating their business
growth supported by proprietary sales forces based in Europe and in
the US.
iM Global Partner currently has strategic minority investments
in six Partners:
Polen Capital: US and global growth
equity managers Dolan McEniry Capital Management: US credit
fundamental value manager Sirios Capital Management: US long
short equity manager Scharf Investments: US value equity
manager Zadig Asset Management: European equity manager
Dynamic Beta investments: Liquid alternative manager
iM Global Partner represents assets under management of $12.4
billion (as of April 30, 2020) in proportion to its participations
in each Partner. Its 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.
(www.imglobalpartner.com)
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 beta2.
(www.dynamicbeta.com)
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 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.
2 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200511005248/en/
Press: Hewes Communications, New York
imglobal@hewescomm.com + 1 212 207 9451
Steele & Holt, Paris Laura Barkatz
laura@steeleandholt.com +33 1 79 74 80 12 / +33 6 58 25 54 14
iMGP DBi Managed Futures... (AMEX:DBMF)
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