US-based Clearbrook Global Advisors has launched their exchange-traded fund platform ClearShares with the introduction of the ClearShares OCIO ETF (NYSE: OCIO). OCIO is an ETF of ETFs, offering access to an actively managed, diverse portfolio of passive index‐based ETFs and actively managed ETFs.
Elliott Wislar, CEO of Clearbrook Global Advisors.
ClearShare’s team of experienced investment professionals actively manages the fund to seek outperformance relative to a traditional 60/40 mix of global equity and fixed-income investments (a blended benchmark of 60% MSCI ACWI/40% Bloomberg Barclays US Aggregate Bond Index).
The ETF’s investment process begins with top-down, forward-looking capital market research. This includes evaluating global economic scenarios and identifying the markets, asset classes, sectors, styles and geographic regions believed to be best positioned to deliver positive absolute and relative returns.
The fund also performs risk analysis by evaluating factors such as credit spread levels, market volatility, yield curve shape, energy prices, market correlations and currency risks. It performs bottom-up research which seeks to identify asset classes that are attractive on both an absolute and relative basis, and to select optimal ETFs using equities-, fixed income- and alternative investments-specific criteria.
In addition to the risk analysis embedded in the fund’s investment process, OCIO seeks to limit downside risk by avoiding ETFs that employ high levels of leverage, derivatives, or highly illiquid securities. The fund typically limits investment in any single ETF to a maximum of 5% of total assets.
“ClearShares is a natural outgrowth of Clearbrook’s discretionary OCIO platform,” said Elliott Wislar, CEO of Clearbrook Global Advisors. “Our investment process is collaborative and research-driven, directed by a team with multi-asset class, multi-market cycle experience on all sides of the institutional investment relationship. We have listened to a growing number of investors and in response, we have developed an affordable ETF solution and made it available to the entire market.”
According to ClearShares, the fund will appeal to a growing number of institutional investors who are turning to outsourced investment solutions for access to top investment talent and a broader range of traditional and alternative asset classes.
Speaking on the benefits the ETF offers to investors, Tom Deegan, chief operating officer of Clearbrook Global Advisors, said: “We believe the OCIO ETF has the potential to be a total or core portfolio solution for institutional investors, RIAs and individuals, without the resources to achieve comparable levels of professional management and diversification on their own. By integrating experienced professional investment management with the cost advantages, liquidity and transparency of an ETF structure, the OCIO ETF offers a solution with the potential to help clients meet their fiduciary obligations and competitive demands.”
OCIO has a total expense ratio of 0.67% due to a contractual fee waiver in place until June 2018. Its gross expense ratio is 0.87%.