View as:
View as:

Announcement Litman Gregory Masters Funds Launches High Income Alternatives Fund

Fund seeks high income, capital preservation from diverse and flexible strategies

Walnut Creek, CA, September 24, 2018 — 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.”

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.

Media contact:

Tucker Hewes, Hewes Communications, Inc., (212) 207-9451, [email protected]

Stay Informed

iMGP Funds emails provide investors a way to stay in touch with us and receive information regarding the funds and investment principles in general. Topics may include updates on the funds and managers, further insights into our investment team’s processes, and commentary on various aspects of investing.