Advisory Research Inc.
, a Chicago-based investment manager that was recently acquired by investment bank
, on Tuesday rolled out its second mutual fund. The launch
of the Advisory Research International Small Cap
fund comes five months
after Advisory Research entered the mutual fund business with the rollout
of its All Cap Value
The International Small Cap fund carries an expense ratio of 135 basis points and is available through the Schwab
UMB Fund Services
serves as transfer agent, fund accountant and co-administrator, Mutual Fund Administration Corporation
serves as co-administrator,
is custodian and Grand Distribution Services
is the distributor.
Founded in 1974, Advisory Research offers investment management services to institutions and high-net-worth investors. It was purchased by Piper Jaffray in a deal that closed last month.
Explaining why Advisory Research decided to enter the mutual fund business in the fall of last year, Advisory Research CEO Brien O'Brien
pointed to market demand.
"Post-Madoff, there's been a reluctance on the part of some investors to utilize limited partnership structures," O'Brien said. Rolling out mutual funds "is an optimal course of action."
The International Small Cap fund will seek to invest in 60 to 80 securities under normal conditions. It will attempt to replicate the investment strategy utilized in the
International Value limited partnership and institutional separate account products Advisory Research launched in 2006.
is the fund's lead portfolio manager.
Advisory Research has three other mutual funds in registration. Their rollout is "not imminent," O'Brien said.
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