iM Global Partner and Dynamic Beta investments (DBi) will ring the closing bell at the New York Stock Exchange today to celebrate the debut of its iM DBi Managed Futures Strategy ETF (DBMF). The new actively-managed ETF began trading on NYSE Arca earlier this month on May 8.
With an expense ratio is 0.85%, the fund’s objective is long-term capital appreciation by investing in multiple asset classes such as equities, fixed income, currencies, and commodities through futures and forwards contracts. DBMF seeks to achieve its objective by using a managed futures strategy based on a proprietary quantitative model. The strategy, actively managed, seeks to deliver all or more of the pre-fee performance of CTA hedge funds in a daily liquid ETF.
DBi’s investment strategy seeks to identify key market exposures — across equity, fixed income, currency and commodity markets — of a select pool of CTA (managed futures) hedge funds. Based on this analysis, DBi invests directly in long and short positions in the most liquid domestically traded futures contracts. In addition, by targeting the pre-fee performance of the largest CTA hedge funds, the strategy seeks to deliver the lower risk profile of a diversified pool of funds with reasonable fees.
“The iM DBi Managed Futures Strategy ETF is an innovative investment vehicle,” said Andrew Beer, managing member of DBi. “The Fund has the potential to deliver the valuable diversification benefits of a portfolio of leading CTA hedge funds to a broader universe of investors, with reasonable fees, liquidity and transparency investors expect from an ETF.”
DBMF is the first dynamic beta investments product developed since iM Global Partner acquired a minority stake in DBi in the third quarter of 2018. The fund is advised by iM Global Partner and is sub-advised by DBi.
“We are thrilled to offer DBi the extended reach of our iM Global Partner’s multi-asset distribution platform for our new ETF and we look forward to working with DBi and our other US partners to bring further investment vehicles to market,” said Jeffrey Seeley, COO and Head of US Distribution of iM Global Partner.
Learn more about recently launched ETFs in our New ETF section.