SOURCE: GL Capital Partners

FiComm Partners

July 15, 2014 09:00 ET

GL Capital Launches GL Beyond Income Fund (GLBFX) to the Public; Announces Second Quarter 2014 Results

BOSTON, MA--(Marketwired - July 15, 2014) -

  • GL Capital announces the public launch of their GL Beyond Income Fund (GLBFX), a non-traditional fixed income fund that consists primarily of individual variable rate consumer loans.
  • Prior to this launch, the GL Beyond Income Fund was available exclusively to clients of GL's RIA.
  • The GL Beyond Income Fund seeks to provide investors the potential for income without excessive interest rate or credit risk. 

GL Capital Partners, an asset manager and institutional investment advisor that provides liquid alternative strategies to the institutional and registered investment advisor marketplaces, today announced the public launch of their GL Beyond Income Fund (GLBFX), a non-traditional fixed income fund that consists primarily of individual variable rate consumer loans. Prior to this launch, the GL Beyond Income Fund was available exclusively to clients of GL's private client division, GL Investment Services, a Boston-based financial advisory firm.

With this fund entering its third year of performance, GL Capital has yet to find other mutual funds focusing on high quality, whole consumer loans as its core asset and sees this lack of participation as a distinct potential advantage for investors. Proprietary loan sourcing channels allow GL Capital to include loans made to young doctors, dentists, attorneys, and other professionals with degrees from top institutions. 

Proprietary channels for loan sourcing and a decade of experience serving graduate professionals, present GL Capital with the potential to secure above market returns for investors while mitigating against the potential negative impact of a rising interest rate environment. The fund's second quarter 2014 results found below further demonstrate this sentiment.

"We created the GL Beyond Income Fund with the intent to provide retail investors exposure to this asset class via a mutual fund security structure," said Dan Thibeault, Portfolio Manager of the GL Beyond Income Fund and the President and Chief Investment Officer of GL Capital. "We are thrilled to have satisfied our private clients and are now delighted to be in the position to offer this distinct income fund to more investors through other advisors. In today's market, the ability to provide clients with the opportunity for non-correlated income with low sensitivity to interest rates is an attractive proposition to advisors managing client portfolios."

As its core asset, the Fund targets notes that it believes to be at the high-end of risk adjusted return measures within the consumer debt market. During the fund's history, GL's approach has realized exceptional returns with lower volatility than many comparable assets. At a time of great economic risks, investors seeking any meaningful yield have been forced to assume substantial credit and interest rate risks. The goal of the GL Beyond Income Fund is to provide an opportunity to investors seeking income without high levels of interest rate and credit exposure. The fund also delivers value by creating attractive liquidity to young professionals who are often underserved or mispriced by traditional bank offerings. GL Capital's ability to serve both investors and the underlying borrowers results in a potentially sustainable and mutually beneficial model. 

GL Beyond Income Fund's second quarter 2014 results are included below.

  • The fund returned 2.38% in Q2 2014 and delivered a one year return of 12.21%. The annualized since inception (3/23/2012) return is 9.82%. Return metrics as of 6/30/2014.
  • Other metrics that contribute to a portfolio's overall risk / return profile include a duration of 0.38, a Sharpe Ratio of 2.41, and a negative correlation to both the S&P 500 and US Aggregate Bond Index (-0.063 and -0.003 respectively). As of 7/3/2014.

The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor's shares, when redeemed, may be worth more or less than their original cost. The Fund's investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until May 31, 2014, to ensure that the net annual fund operating expenses will not exceed 3.00%, subject to possible recoupment from the Fund in future years. Without these waivers, the Fund's total annual operating expenses would be 13.01%. Please review the fund's prospectus for more information regarding the fund's fees and expenses. For performance information current to the most recent month-end, please call toll-free 866-754-7930.

Investors should carefully consider the investment objectives, risks, charges and expenses of the GL Beyond Income Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 866-850-1596 or visiting www.glcapitalfunds.com. The prospectus should be read carefully before investing. The GL Beyond Income Fund is distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. GL Capital Partners, LLC and GL Investment Services are not affiliated with Northern Lights Distributors, LLC.

Closed-end funds involve risk including the possible loss of principal. There is no assurance that the Fund will achieve its investment objectives. Issuers of notes may not make scheduled interest and principal payments, resulting in losses to the Fund. In addition, the credit quality of securities may be lowered if an issuer's financial condition deteriorates, which tends to increase the risk of default and decreases a note's value. Defaulted securities lack liquidity and may have no secondary market for extended periods.

Defaulted securities may have low recovery values and defaulting issuers may seek bankruptcy protection which would delay resolution of the Fund's claims. Typically, a rise in interest rates causes a modest decline in the value of variable-rate fixed income securities. Rising interest rates also tend to increase the likelihood of issuer default. The use of leverage, such as borrowing money to purchase securities, will cause the Fund or an Investment Fund to incur additional expenses and magnify the Fund's gains or losses.

Securities may be subject to prepayment or extended maturity risk because issuers are typically able to prepay, or in some cases delay payment of principal, without penalty. Consequently, a security's maturity may be shorter or longer than anticipated and thus lower the yield expected by the Fund. Mutual funds and ETFs are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, your cost of investing in the Fund will be higher than the cost of investing directly in mutual funds and ETFs. Each mutual fund and ETF is subject to specific risks, depending on its investments. Quarterly repurchases by the Fund of its shares typically will be funded from available cash or sales of portfolio securities. The sale of securities to fund repurchases could reduce the market price of those securities, which in turn would reduce the Fund's net asset value. There is no guarantee that shareholders will be able to sell all of the shares they desire in a quarterly repurchase offer.

Definition of financial terms.

Duration: A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices.

Sharpe Ratio: Is a risk-adjusted measure of return that is used to evaluate the performance of one portfolio comparable to another by adjusting for risk. The Sharpe ratio is used to characterize how well the return of an asset compensates the investor for the risk taken, the higher the Sharpe ratio number the better.

Correlation: Is a measure of the degree to which the value of different investment types move in the same direction; if they perform independently of one another, they are non-correlated, such as managed futures vs. stocks and bonds.

S&P 500 Index: The S&P 500® Index is an unmanaged composite of 500 large capitalization companies. This index is widely used by professional investors as a performance benchmark for large-cap stocks. You cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.

Barclays Capital US Aggregate Bond Index: The Barclays Capital U.S. Aggregate Bond® Index covers the USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes bonds from the Treasury, Government-Related, Corporate, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS sectors. The U.S. Aggregate Index is a component of the U.S. Universal Index in its entirety. Unmanaged index returns do not reflect any fees, expenses or sales charges.

Yield: The income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment's cost, its current market value or its face value.

 5146-NLD-07/14/2014

About the Portfolio Managers:

Dan Thibeault is the head portfolio manager of the GL Beyond Income Fund and leads GL Capital's Investment Committee. Prior to founding GL in 2003, Dan began his career in the Fixed Income Group at Goldman Sachs where he worked with ABS and other structured products and then, following his tenure at Goldman, worked in GE Capital's Private Equity Group completing strategic investments in the technology sector. Dan received his MBA from Harvard University and BA from Dartmouth College.

Frank Luisi is the co-portfolio manager of the GL Beyond Income Fund and leads GL's consumer credit division. Prior to joining GL Capital in 2005, Frank managed GL's credit-based private student loan division, including business development and risk management, generating over $150 million in assets. He then worked at Credit Suisse Private Bank before returning to GL in 2011. Frank received his MBA from The University of Virginia Darden and BA from Colgate University.

About GL Capital Partners:

GL Capital Partners is a global asset manager and institutional investment advisor that provides liquid alternative strategies to the institutional and registered investment advisor marketplaces. Headquartered in Waltham, MA, GL Capital created and manages the GL Beyond Income Fund (ticker: GLBFX) and provides multiple managed account offerings. For more information on GL Capital Partners please visit www.glcp.com

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