Chicago-based investment advisor The Future Fund has launched its first ETF, an actively managed fund targeting companies poised to take advantage of secular growth opportunities.
The fund will diversify across secular growth themes including information, entertainment, automation, lifestyle improvements, and sustainability.
The Future Fund Active ETF (FFND US) has been listed on NYSE Arca and comes with an expense ratio of 1.01%.
The fund is co-managed by Gary Black, former CEO of Aegon Asset Management, and David Kalis, a former CIO of Curvature Capital Management.
Gary Black said: “We are focused on change. We have identified a number of secular megatrends that are changing the world and are investing in the companies we believe are best positioned to capitalize on those trends. We’re excited to offer our investors the opportunity to be part of the significant potential we see in the market.”
David Kalis added: “These companies attempt to capitalize on megatrends we see influencing our daily lives. We’re looking for transformational opportunities that could develop over the next several years, and we use our deep research experience to look for companies that are potentially worth multiples of their current prices.”
The ETF targets a high conviction portfolio of approximately 40 to 50 US-listed equities, including American Depository Receipts. It is unrestricted in its exposure to sectors and market capitalizations; however, the fund is expected to maintain a tilt towards large and mid-cap companies.
Black and Kalis seek to identify long-term thematic opportunities created by changes in technology, consumer preferences, demographics, regulations, environmental trends, and supply/demand dynamics. By investing across multiple secular growth themes, such as information, entertainment, automation, lifestyle improvements, and sustainability, the fund aims to diversify away from the risk of any individual theme performing poorly.
The managers then seek to identify companies that can significantly benefit from these themes, setting individual stock price targets that they expect to be reached within five to ten years.