NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Pacific Global Asset Management announced today the launch of Pacific Global US Equity Income ETF, a new actively-managed equity fund focused on income and capital appreciation.
“We see an exciting opportunity to help clients address their income and growth needs through the simplicity and transparency of exchange traded funds,” said Head of ETF Product Development, Anthony J. Dufault. “To accomplish this, we balance the 150-year-old investment expertise of our parent company, Pacific Life, with a modern and agile approach to building client investment solutions that stand the test of time.”
Pacific Global US Equity Income ETF (Ticker: USDY), listed on the NYSE Arca, actively invests in U.S. companies with above average or improving dividends. “USDY offers investors value and access to an experienced portfolio management team, making it an ideal complement to a passively managed dividend strategy.”
Affiliated asset manager Cadence Capital Management, the fund’s sub-adviser, brings expertise in factor-based equity investing. In 2019, Pacific Global ETFs expects to offer additional equity & fixed-income focused ETFs, which will enable investors to build customized investment portfolios tailored to specific income and capital appreciation investment goals.
For more information about the Pacific Global ETFs, visit: www.pacificglobaletfs.com.
Pacific Global Asset Management LLC
Pacific Global Asset Management has approximately $16 billion in assets under management, as of December 31, 2018, across investment strategies that include fixed income, equity, and alternatives solutions. Investment teams include Pacific Asset Management, Cadence Capital Management, Pacific Private Fund Advisors and Pacific Global Advisors. Core investment strategies include: bank loans, income funds, high yield, equity solutions, and private equity. Pacific Global Asset Management LLC is a wholly-owned subsidiary of Pacific Life Insurance Company (“Pacific Life”).
Cadence Capital Management LLC
Cadence Capital Management is a global equity manager specializing in factor-based equity investment strategies. Founded in 1988, Cadence Capital Management manages approximately $2.9 billion of assets, as of December 31, 2018, for institutions, fund sponsors, family offices, investment platforms, and financial advisors. Cadence is a wholly-owned subsidiary of Pacific Global Asset Management LLC, and an indirect subsidiary of Pacific Life.
Risks and other Important Information
ETF shares are not individually redeemable from the Fund. Shares may only be redeemed directly from the Fund by Authorized Participants in creation units only.
Authorized Participant Concentration Risk. The Fund has a limited number of institutions that act as Authorized Participants. To the extent that these institutions exit the business or are unable to proceed with creation and/or redemption orders with respect to the Fund and no other Authorized Participant is able to step forward to create or redeem Creation Units, Fund shares may trade at a discount to NAV and possibly face trading halts and/or delisting.
The Fund faces numerous market trading risks, including disruptions to the creation and redemption processes of the Fund, losses from trading in secondary markets, the existence of extreme market volatility or potential lack of an active trading market for Shares, which may result in Shares trading at a significant premium or discount to NAV. The market prices of Shares will fluctuate in accordance with changes in NAV and supply and demand on the Exchange. If a shareholder purchases Shares at a time when the market price is at a premium to the NAV or sells Shares at a time when the market price is at a discount to the NAV, the shareholder may sustain losses.
The Fund is subject to limited history of operations risk since it is a new ETF and has a limited history of operations for investors to evaluate. The Fund is an actively managed exchange traded fund (ETF) and, thus, does not seek to replicate the performance of a specified index. Instead, investment decisions are made based on investment views and there is no guarantee that the investment views will produce the desired results or expected returns, which may cause the Fund to fail to meet its investment objective or to underperform its benchmark index or funds with similar investment objectives and strategies.
While the Fund may hold securities of companies that have historically paid a high dividend yield, it is subject to dividend-paying stock risk, as those companies may reduce or discontinue their dividends, reducing the yield of the Fund. The net asset value of the Fund will fluctuate based on changes in the value of the U.S. equity securities held by the Fund. Equity prices can fall rapidly in response to developments affecting a specific company or industry, or to changing economic, political or market conditions. The Fund is subject to issuer risk, as fund performance depends on the performance of individual securities that the Fund holds. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline. The Fund is also subject to large capitalization company risk, which is the possibility that larger, more established companies may be unable to attain the high growth rates of successful, smaller companies during periods of economic expansion. Overall market risks may affect the value of the Fund. Factors such as U.S. economic growth and market conditions, interest rate levels and political events affect the securities markets. Sector risk is the possibility that securities held by the Fund that are within the same group of industries will decline in price due to sector-specific market or economic developments. If the Fund invests more heavily in a particular sector, the value of its shares may be especially sensitive to factors and economic risks that specifically affect that sector.
Shares of the Fund are not insured by the FDIC or any federal government agency, may lose value, and are not a deposit of or guaranteed by any bank or bank affiliate.
Before investing, Investors should carefully read the prospectus/summary prospectus and carefully consider the Investment objectives, risks, charges and expenses. For this and more complete information about the fund call (866) 933-2398 or visit www.pacificglobaletfs.com for the prospectus/summary prospectus.
Shares of the Fund are distributed by Foreside Fund Services, LLC.