WALNUT CREEK, Calif., Sept. 24, 2018 /PRNewswire/ -- Litman Gregory Fund Advisors, LLC, an affiliate of wealth management firm Litman Gregory Asset Management, announced today the launch of Litman Gregory Masters High Income Alternatives Fund. The fund will be available September 28 on most trading platforms in two share classes: Investor (MAHNX, minimum $1,000) and Institutional (MAHIX, minimum $100,000).
The fund seeks to generate a high level of current income from diverse sources, consistent with the goal of capital preservation over time. Capital appreciation is a second objective. It is sub-advised by four managers that are focused on alternative sources of income relative to core fixed income:
Ares Management manages the alternative equity income sleeve, which invests in specialty income-generating publicly traded equity sectors;
Brown Brothers Harriman runs the credit value sleeve, investing in fixed income securities from a variety of sectors, with an emphasis on non-mainstream asset-backed securities;
Guggenheim Partners manages the fund's multi-credit sleeve, investing in a wide range of fixed-income securities across multiple segments of the credit markets;
Neuberger Berman oversees the option income sleeve, which writes collateralized put options on U.S. stock indices.
"Today's bond market is presenting fixed income investors with twin challenges of low yields and high interest-rate risk," said Jeremy DeGroot, Chief Investment Officer of Litman Gregory Asset Management. "But we believe there are still good opportunities to generate income and returns by investing with income-oriented managers who have expertise in less efficient and less traditional areas of the financial markets – areas that most investors may not otherwise own. We believe these investment strategies can improve the long-term performance of a traditional balanced or fixed-income portfolio. That's why we created Litman Gregory Masters High Income Alternatives Fund."
The fund's managers were selected based on Litman Gregory's extensive due diligence expertise. According to DeGroot, "The subadvisors we've chosen for this fund are experienced, opportunistic investors who also seek to mitigate risk; they aren't chasing yield. We expect the fund to be relatively insensitive to the direction of interest rates, with returns comparable to high-yield bonds over time, but with less volatility and downside risk."
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About Litman Gregory
Litman Gregory, co-founded in 1987 by Ken Gregory and Craig Litman, is a nationally recognized boutique wealth management firm based in the San Francisco Bay Area.
Since its founding, Litman Gregory Asset Management has provided wealth management services with a commitment to excellent client service to individuals, multigenerational families, endowments, and foundations.
Litman Gregory advises the Litman Gregory Masters Funds, provides Litman Gregory Portfolio Strategies on third-party asset management platforms, and publishes investment research and portfolio guidance for other investment advisors through Litman Gregory AdvisorIntelligence.
Tucker Hewes, Hewes Communications, Inc., (212) 207-9451, [email protected]
This fund is new and performance information is not available. Once performance is available, it may be obtained by calling 1-800-960-0188 or by visiting www.mastersfunds.com
The fund's investment objectives, risks, charges, and expenses must be considered carefully before investing. The statutory and summary prospectus contains this and other important information about the investment company, and it may be obtained by calling 1-800-960-0188. Read it carefully before investing.
Although the managers actively manage risk to reduce portfolio volatility, there is no guarantee that the fund will always maintain its targeted risk level, especially over shorter time periods and loss of principal is possible. The performance goals are not guaranteed, are subject to change, and should not be considered a predictor of investment return. All investments involve the risk of loss and no measure of performance is guaranteed. The fund aims to deliver its return over a full market cycle, which is likely to include periods of both up and down markets.
Though not an international fund, the fund may invest in foreign securities. Investing in foreign securities exposes investors to economic, political and market risks, and fluctuations in foreign currencies. Investments in debt securities typically decrease when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in mortgage-backed securities include additional risks that investor should be aware of including credit risk, prepayment risk, possible illiquidity, and default, as well as increased susceptibility to adverse economic developments. Investments in lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management, and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. The fund may invest in master limited partnership units. Investing in MLP units may expose investors to additional liability and tax risks. Multi-investment management styles may lead to higher transaction expenses compared to single investment management styles. Outcomes depend on the skill of the sub-advisors and advisor and the allocation of assets amongst them. The fund may make short sales of securities, which involves the risk that losses may exceed the original amount invested. Merger arbitrage investments risk loss if a proposed reorganization in which the fund invests is renegotiated or terminated.
Diversification does not assure a profit nor protect against loss in a declining market.
Leverage may cause the effect of an increase or decrease in the value of the portfolio securities to be magnified and the fund to be more volatile than if leverage was not used.
For industry terms and definitions, please visit mastersfunds.com/industry-terms-and-definitions.
Mutual fund investing involves risk. Principal loss is possible.
Litman Gregory Fund Advisors, LLC has ultimate responsibility for the performance of the Litman Gregory Masters Funds due to its responsibility to oversee the funds' investment managers and recommend their hiring, termination, and replacement.
The Litman Gregory Masters Funds are Distributed by ALPS Distributors, Inc.
SOURCE Litman Gregory Fund Advisors, LLC