Braddock Multi-Strategy Income Fund Crosses $500 Million in Assets and Hires a New Senior Investment Analyst
New York, New York – August 19th, 2019 – Liberty Street Advisors, Inc. (“Liberty Street”) and Braddock Financial, LLC (“Braddock”) are pleased to announce that the Braddock Multi-Strategy Income Fund (BDKNX) (the “Fund”) has crossed the $500 million benchmark in assets under management and received a five-star overall Morningstar RatingTM from among 297 funds in the Multisector Bond Fund Category as of July 31st, 2019 based on its risk-adjusted returns. Liberty Street is the investment advisor to the Fund. Braddock is the Fund’s sub-advisor.
In addition, Braddock has hired Mr. Kenneth Cramer as Braddock’s new Senior Investment Analyst. Mr. Cramer has seven years of investment and financial markets experience. Prior to joining Braddock, Mr. Cramer was a Senior Associate at Pacific Investment Management Company (PIMCO) in the Product Strategy group. There he covered securitized products and other mortgage-related investments. Before PIMCO, Mr. Cramer was an Investment Banking Analyst at Barclays in the Securitized Products group, where his work encompassed a variety of Non-Agency RMBS and ABS origination and advisory assignments. Mr. Cramer received his MBA with a concentration in Analytic Finance from the University of Chicago Booth School of Business and a B.A. in Economics with distinction from Colby College.
Toby Giordano, Portfolio Manager of Braddock Financial, LLC commented, “We are very happy to have reached the $500 million milestone and would like to thank all of our investors for their partnership in the Fund. The Fund’s core invested focus of Modern Residential Mortgage Backed Securities (RMBS) and Consumer Asset-Backed Securities (ABS) products has benefitted from today’s conservative mortgage/consumer lending standards and the strength of the U.S. consumer balance sheet.”
“At Braddock, we believe it is critical for investors to diversity beyond traditional 60/40 portfolios and to seek investments that provide attractive risk adjusted returns and low correlation to traditional fixed income and corporate markets,” said Garrett Tripp, Senior Portfolio Manager at Braddock Financial, LLC. “The Fund has demonstrated strong performance, low volatility and low correlation across a wide variety of interest rate environments and is topical to today’s financial market environment. We are very excited about its future.”
The Braddock Multi-Strategy Income Fund is available at UBS, Stifel Nicholas and various independent broker dealers as well as through major custodians including Charles Schwab, Fidelity, Pershing, & TD Ameritrade.
About the Fund
The Braddock Multi-Strategy Income Fund ("The Fund") is an open-end mutual fund investing primarily in asset-backed debt securities, with a focus on mortgage-related securities. The Fund may also invest a portion of the portfolio in collateralized loan obligations. Interest rate duration is short given fund holdings primarily have ﬂoating rate coupons. The Fund has the ability to take short positions to dampen volatility or to express relative value views.
About Liberty Street Advisors
Liberty Street offers investors mutual funds which are sub-advised by third party boutique independent managers who possess a particular expertise in their space. Through its selective multi-manager family of funds, Liberty Street provides access to timely investment strategies designed to help investors and financial advisors meet the challenges of today's market environment. In addition to the Fund, Liberty Street is the advisor to the Robinson Tax Advantaged Income Fund, the Robinson Opportunistic Income Fund, and the West Loop Realty Fund.
About Braddock Financial
Braddock Financial LLC is a structured credit asset manager focusing on asset-backed debt securities and was founded in 1994. Braddock believes that asset-backed securities provide the opportunity to build and manage investment portfolios focusing on attractive risk-adjusted returns. Braddock's strength in security selection comes from deep fundamental knowledge of the sector and from proprietary loan level research, along with significant trading experience. In addition, Braddock manages funds and customized separate accounts for institutions and high net worth individuals.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus and summary prospectus, a copy of which may be obtained by calling (800) 207-7108 or by visiting the Fund’s website at www.libertystreetfunds.com. Please read the prospectus and summary prospectus carefully before you invest.
An investment in the Braddock Multi-Strategy Income Fund is subject to risk, including the possible loss of principal amount invested and including, but not limited to, the following risks, which are more fully described in the prospectus: Mortgage-backed securities: subject to “prepayment risk” (the risk that borrowers will repay a loan more quickly in periods of falling interest rates) and “extension risk” (the risk that borrowers will repay a loan more slowly in periods of rising interest rates). If the Fund invests in mortgage-backed or asset-backed debt securities that are subordinated to other interests in the same pool, the Fund may receive payments only after the pool’s obligations to other investors have been satisfied. The risk of defaults is generally higher in the case of mortgage pools that include so-called “subprime” mortgages. Real estate risk: property values may fall due to increasing vacancies or declining rents resulting from unanticipated economic, legal, employment, cultural or technological developments. CLO risk: Collateralized Loan Obligations (CLOs) largely depend on the type of underlying collateral securities and the tranche in which the Fund invests. While CLOs are subject to the typical risks associated with debt instruments (i.e., interest rate risk and credit risk), the Fund is also subject to asset manager, legal and regulatory, limited recourse, liquidity, redemption, and reinvestment risks as a result of the structure of CLOs in which the Fund may invest. Credit Risk: securities held by the Fund could be subject to credit risk, including factors that may impair the credit rating and which may cause the value of the Fund’s investment to decline. Interest rate risk: your investment may go down in value when interest rates rise, because when interest rates rise, the prices of bonds and fixed rate loans fall. Generally, the longer the maturity of a bond or fixed rate loan, the more sensitive it is to this risk. Falling interest rates also create the potential for a decline in the Fund’s income. These risks are greater during periods of rising inflation. High Yield (“Junk”) bond risk: junk bonds are speculative investments which involve greater risk of default, downgrade, or price declines, can be more volatile and tend to be less liquid that investment-grade securities. Repurchase agreement risk: may be viewed as loans made by the Fund which are collateralized by the securities subject to repurchase. The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Reverse repurchase agreement risk: reverse repurchases provide the Fund with cash for investment purposes, which creates leverage and subjects the Fund to the risks of leverage. Reverse repurchase agreements also involve the risk that the other party may fail to return the securities in a timely manner or at all. Liquidity risk: the Fund may not be able to sell some or all of the investments that it holds due to a lack of demand in the marketplace or other factors such as market turmoil. The sales price the Fund could receive for any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued by the Fund using a fair value methodology due to the fact that illiquid assets may be difficult to value. Leverage risk: as a result of borrowing or other investment techniques, the Fund may be leveraged. Leverage creates exposure to gains and losses in a greater amount than the dollar amount made in an investment. Derivatives risk: derivative instruments, futures contracts, options, swap agreements, and/or selling securities short involve risks different from direct investment in the underlying assets, including but not limited to: futures contracts may cause the value of the Fund’s shares to be more volatile; the Fund may not fully benefit from or may lose money on option or shorting strategies; swaps may be leveraged, are subject to counterparty risk and may be difficult to value or liquidate. Non-diversification risk: as a non-diversified fund, the Fund may focus its assets in the securities of fewer issuers, which exposes the Fund to greater market risk that if its assets were diversified among a greater number of issuers.
©2019 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Past performance is no guarantee of future results. The Morningstar RatingTM for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange traded funds, closed end funds, and separate accounts) with at least a three-year history. Exchange –traded funds and open ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-,five-,and 10 year (if applicable) Morningstar Rating metrics. The weights are 100% three-year rating for 36-59 months of total returns, 60% five year rating/40%three-year rating for 60-119 months of total returns, and 50% 10 year rating/30%five-year rating/20%three year rating for 120 or more months of total returns. While the 10 year overall rating formula seems to give the most weight to the 10 year period, the most recent three –year period actually has the greatest impact because it is included in all three rating periods. Morningstar Rating is for the Braddock Multi Strategy Income Fund Institutional Class only; other classes may have different performance characteristics.
Distributed by Foreside Fund Services, LLC. www.foreside.com.