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Announcement High Income Alternatives Fund Manager Change

We are removing Ares Management as a sub-advisor to the PartnerSelect High Income Alternatives Fund effective Tuesday, January 19. We reached this decision based on Ares’ intention to narrow their investable opportunity set in this strategy to Business Development Companies (BDCs) only. We still have a great deal of respect for Ares and the portfolio managers on the strategy, and we thank them for their contributions to the fund.

There are no immediate plans to replace Ares. We remain highly confident in the remaining three sub-advisors on the fund—Brown Brothers Harriman (BBH), Guggenheim, and Neuberger Berman. We are allocating Ares’ assets to BBH and Guggenheim, resulting in the following allocations:

  • 40% Brown Brothers Harriman
  • 40% Guggenheim
  • 20% Neuberger Berman

We believe the fund remains well-diversified with the ability to be opportunistic across non-traditional credit sectors, particularly within the broad mandates of the fund’s flexible credit managers, BBH and Guggenheim. Looking ahead, we may replace Ares if we find outstanding managers running strategies we believe are complementary to the existing lineup and that fit the fund’s risk-return profile.

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DISCLOSURE

PartnerSelect Fundsʼ investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be viewed here or by calling 1-800-960-0188. Read it carefully before investing. Mutual fund investing involves risk. Principal loss is possible. *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. Index Definitions | Industry Terms and Definitions The PartnerSelect Funds are distributed by ALPS Distributors, Inc.