Investment Products and Service Launches

Cavalier Assigns Nine Interim Sub-Advisers for Suite of Mutual Funds; Empower Retirement Paper Explores QDIAs; TOBAM Launches its First U.S. Mutual Fund.

Mutual fund manager-of-managers Cavalier Investments has appointed nine firms as interim sub-advisers for its suite of funds. 

The sub-advisers, each approved by the Cavalier investment committee, were selected for their connection to Cavalier’s investment philosophy and performance standards, the company said. 

The firms chosen are: Beaumont Capital Management, Bluestone Capital Management, Carden Capital, Efficient Market Advisors, Julex Capital Management, Navellier & Associates, Parasol Investment Management, StratiFi and Validus Growth Investors.

“These firms were carefully selected for their high-quality, defensive-oriented, and tactical, rules-based approach to investing,” says Gregory A. Rutherford, chief executive officer of Cavalier Investments. “We believe portfolios should adapt to changing market conditions and each of these firms aligns with our philosophy. Given recent market volatility, and the need for tactical funds that are versatile and protective, we are pleased to partner with firms that bring a proven track record with this strategy.”

The appointment comes after the bull market run and recurrent instability have caused a need for additional strategic protective offerings, according to the firm.

The Cavalier Investments suite of funds is as follows: Cavalier Dynamic Growth (I-Shares CDYGX); Cavalier Fundamental Growth (I-Shares CAFGX); Cavalier Global Opportunities (I-Shares CATEX); Cavalier Hedged High Income (I-Shares CHIIX); Cavalier Multi Strategist (I-Shares CMSFX); Cavalier Adaptive Income (I-Shares CADTX); and Cavalier Tactical Rotation (I-Shares CTROX).

“With these funds and the proven sub-advisers and managers behind them, investors have more options in both expanding and contracting markets,” says Scott Wetherington, chief investment officer for Cavalier. 

NEXT: Empower Retirement Paper Explores QDIAs

Empower Retirement Paper Explores QDIAs

Empower Retirement and Great-West Investments recently published “In Search of a More Dynamic QDIA [Qualified Default Investment Alternative],” a joint white paper explaining its “dynamic QDIA” model. 

The dynamic QDIA model is designed to adapt to a participant’s evolving perception of financial decisionmaking and retirement planning overtime. It’s based on Great-West Investment’s finding that “some individuals, who are less interested in retirement planning in their early working years, are likely to become increasingly engaged as they move into the middle stage of their career.” 

The model aims to leverage existing QDIA regulations in order to direct participant savings into professionally managed investment options such as target-date funds (TDFs) early during their careers, Empower says. After a “pre-determined set of criteria” are met in the future, a participant’s savings would shift toward a managed account, providing the opportunity to receive personalized asset allocation and advisory services while moving closer to retirement.

“The great challenge plan sponsors face is how to help their participants who do not make decisions about their retirement plan,” says Edmund F. Murphy III, president of Empower Retirement.  “We hear it every day. One important touch point we have with these participants is through their default option so we wanted to explore how we could create an innovative offering to help improve engagement.”

David Musto, president of Great-West Investments adds, “Investments within retirement plans have the capability to be much more than off-the-shelf products built for the average retirement plan participant. As an investor’s financial needs change over a lifetime there is an opportunity for default solutions to adapt to those needs.”

The white paper can be found online here

NEXT: TOBAM Launches its First U.S. Mutual Fund

TOBAM Launches its First U.S. Mutual Fund

TOBAM, a global asset manager, has partnered with McMorgan & Company Capital Advisors, a San Francisco-based broker/dealer, to launch the TOBAM Emerging Markets Fund for institutional investors.

Being the first mutual fund launched in the U.S. by TOBAM, the fund will provide investors with access to a “cost effective, socially responsible, and liquid vehicle,” the firm said.

“We continue to focus on delivering innovative, relevant, and proven investment strategies to our clients,” says John Santaguida, CEO of McMorgan & Company. “TOBAM’s approach, targeting maximum diversification, exemplifies the qualities we seek in this pursuit. The launch of the TOBAM Emerging Markets Fund will provide clients with exposure to the return potential of emerging markets while attempting to significantly reduce volatility and preserve a conscientious approach to responsible social and environmental issues.”

McMorgan and TOBAM are also collaborating in the distribution of TOBAM’s patented Anti-Benchmark strategy to the Taft-Hartley community. The approach has garnered more than $8 billion in assets under management (AUM) globally, the firm says.