iM Global takes stake in liquid alts shop
Paris-based multi-boutique iM Global Partners has taken a 45% stake in liquid alternatives shop Dynamic Beta investments, which was previously named Beachhead Capital.
The purchase marks the fourth investment made in US asset managers by iM Global Partners, which purchases stakes in asset managers and provides them with distribution and other assistance.
iM Global Partner, which already has strategic minority investments in four US asset managers – Polen Capital, Dolan McEniry Capital Management and Sirios Capital Management – represented $7.6 billion total assets under management (AUM) as of July.
Founded in 2007 by serial entrepreneur Andrew Beer, NY-based Dynamic Beta investments specializes in liquid alternatives and specifically hedge fund replication strategies. The firm offers three main strategies consisting of equity hedge, managed futures and multi asset/stable return.
'Since 2007, we have demonstrated that we can deliver the diversification benefits of hedge funds without high fees, gating/suspension risk, and single manager risk.,' said Beer. 'The next generation of liquid alternative products must be able to match or outperform actual hedge funds with lower fees and less risk than single manager products.'
RBC Capital Markets served as financial advisor to Dynamic Beta investments in this transaction. Terms of the deal were not disclosed.
Janus Henderson unveils MBS ETF
Janus Henderson has launched the firm’s second actively managed fixed income ETF, the Janus Henderson Mortgage-Backed Securities ETF (JMBS).
The fund, which is benchmarked against the Bloomberg Barclays US MBS index, will be co-managed by Citywire AA-rated John Kerschner, head of US securitized products at Janus Henderson and portfolio manager Nick Childs. It charges a management fee of 35 basis points.
The fund is also the first ETF launched after Denver-based Janus Capital merged with London-based Henderson Group in May last year.
There are currently five passive ETFs in the mortgage-backed securities space in the US. The iShares MBS ETF and the Vanguard Mortgage Backed Securities ETF are the biggest.
'There is considerable white space between lower-cost passive ETFs and higher-cost actively managed mutual funds that an actively managed ETF like JMBS has the potential to fill,’ said Kerschner.
He said in an interview that the ETF vehicle is well suited to mortgages because of the liquidity of mortgages, which could work well with the transparency of ETFs.
Janus entered the active fixed income ETF market in 2016 with the launch of the Janus Henderson Short Duration Income ETF (VNLA), which has amassed $580.5 million in assets.
Janus Henderson had approximately $370.1 billion in AUM as of June 30.