Author Archives: David Snowball

About David Snowball

David Snowball, PhD (Massachusetts). Cofounder, lead writer. David is a Professor of Communication Studies at Augustana College, Rock Island, Illinois, a nationally-recognized college of the liberal arts and sciences, founded in 1860. For a quarter century, David competed in academic debate and coached college debate teams to over 1500 individual victories and 50 tournament championships. When he retired from that research-intensive endeavor, his interest turned to researching fund investing and fund communication strategies. He served as the closing moderator of Brill’s Mutual Funds Interactive (a Forbes “Best of the Web” site), was the Senior Fund Analyst at FundAlarm and author of over 120 fund profiles.

Launch Alert: JOHCM Global Income Builder

By David Snowball

On November 29, 2017, J.O. Hambro Capital Management launched JOHCM Global Income Builder (JOFIX/JOBIX) managed by the firm’s Multi Asset Value Team. It seeks to achieve a reliable stream of meaningful monthly income distributions, coupled with some capital growth and a vigilant concern for limiting investor losses. It is a multi-asset fund but it is largely unconstrained: it targets US and international income-producing securities including common stock, high-yield and investment grade debt, preferred shares and convertibles, and a variety of hedges including gold, precious metals, currency forward contracts, and inflation-linked vehicles. Continue reading →

The Morningstar Minute

By David Snowball

The Morningstar Investment Conference returns to June and to the McCormick Place. MICUS runs June 11–13, 2018 at McCormick Place, Chicago. Jeremy Grantham and Dan Kahnemann are speaking and folks from a bunch of first-tier small fund firms will be there: Centerstone, FPA, JOHCM, Moerus, Queens Road, RiverPark, Seafarer. Not Grandeur Peak or Rondure. Pity. We’ll be there. Let us know if you’d like to meet. Continue reading →

Funds in Registration

By David Snowball

The SEC requires advisers to give them 75 days to review and comment upon any proposed new fund offering. During those 75 days, the advisers aren’t permitted to say anything about the funds except “please refer to our public filing with the SEC.” At peak times of the year, there might be a couple dozen no-load retail funds and active ETFs in registration. This month the offerings are few but intriguing: a health sector fund from Baron, Matisse Capital’s second fund targeting discounted CEFs, the re-emergence of a successful Scout manager at Oberweis and an intriguing (but unexplained) active ETF that’s Continue reading →

Briefly Noted

By David Snowball

Updates

The 2018 Thomas Reuters Lipper Fund Awards have been announced. By their calculation, the top fund families overall are Thrivent Mutual Funds and TIAA Investments. Thrivent represents the universe of small fund companies while TIAA represents large firms. The top small fund families were PRIMECAP (equities), Ashmore (fixed income) and Allianz Global Investors (mixed assets).

Individual funds worth noting Continue reading →

February 1, 2018

By David Snowball

Dear friends,

It’s a Tale of Two Parties, one rather healthier than the other. My students, slowed by a surprisingly cold month and end-of-term stress (Augustana is finishing a Winter trimester that began a bit after Halloween and ends near Valentine’s Day), have taken to launching spontaneous little parties in hopes of gathering that last burst of energy needed to make it through a last set of research presentations and reflective essays. Lionel Ritchie (whose name they barely recognize) captures the late winter moment: “Party, Karamu, Fiesta, Forever. Come on and sing along.” On whole, that strikes me as joyful, appropriate and, ultimately, productive.

The other party rather Continue reading →

Launch Alert: CrossingBridge Low Duration High Yield (CBLDX)

By David Snowball

CrossingBridge Low Duration High Yield launched on February 1, 2018. The fund seeks “high current income and capital appreciation consistent with the preservation of capital.” The plan is to invest in junk bonds and loans, mostly CCC or better. Their investable universe includes corporate bonds, zero-coupon bonds, commercial paper, ETNs, distressed debt securities, bank loan assignments and/or participations, private placements, mortgage- and asset-backed securities, U.S. Government obligations and bank loans to corporate borrowers. While most of the portfolio will be domestic, up to 25% might be foreign fixed-income securities. They’ll generally have a duration of three years or less. There’s also some (limited) ability to Continue reading →

Elevator Talk: Parker Binion, KCM Macro Trends Fund

By David Snowball

Since the number of funds we can cover in-depth is smaller than the number of funds worthy of in-depth coverage, we’ve decided to offer one or two managers each month the opportunity to make a 200 word pitch to you. That’s about the number of words a slightly-manic elevator companion could share in a minute and a half. In each case, I’ve promised to offer a quick capsule of the fund and a link back to the fund’s site. Other than that, they’ve got 200 words and precisely as much of your time and attention as you’re willing to share. These aren’t endorsements; they’re opportunities to learn more about interesting funds.

KCM Macro Trends Fund (KCMTX/KCMIX) launched in Continue reading →

Funds in Registration

By David Snowball

The SEC requires advisers to give them 75 days to review and comment upon any proposed new fund offering. During those 75 days, the advisers aren’t permitted to say anything about the funds except “please refer to our public filing with the SEC.” At peak times of the year, there might be a couple dozen no-load retail funds and active ETFs in registration. Midwinter, not so much. Fidelity’s ESG bond index might be a useful option for investors looking to express their concerns about shaping a more humane world. Beyond that, mostly nice people who don’t yet have a public track record or striking competitive advantage. They might do very well, but we’ll have to watch for a bit. Continue reading →

Briefly Noted

By David Snowball

Updates (and notes from careful readers)

Several MLP funds – including Center Coast MLP Focus Fund (CCCAX) and Global X MLP ETF (MLPA) – have announced that the recent tax law changes affects them. They’re treated as “a regular corporation” for the purpose of tax law, which means that the statutory tax rate that affects them has dropped from 35% to 21%. It is not yet clear that the rate change will have any appreciable effect on shareholders or the funds’ returns because of the complexity of calculating corporate taxes, then or now.

FPA U.S. Value Fund (FPPFX) has affirmed the proposition that Continue reading →

January 1, 2018

By David Snowball

Dear friends,

Welcome to the New Year!

And to an odd question: why is it a New Year? That is, why January 1? Most calendrical events correspond to something: cycles of the moon and stars, movement of the seasons, conclusions of wars or deaths of Great Men.

But why January 1? It corresponds with nothing.

The short version of the answer is Continue reading →