A international value manager with $1.7 billion (as of April 30) just entered the U.S. mutual fund business. Yesterday Los Angeles-based del Rey Global Investors [see profile] revealed the launch of its first mutual fund, the del Rey Monarch Fund [see prospectus].

Banking Business Review covered the launch.

Paul Hechmer, managing member and chief investment officer at del Rey, previously served as a founding member, executive managing director and PM at one of Nuveen's boutique managers, Tradewinds Global Investors. Jerry Wheeler, who most recently served as general counsel for LA-based Ivory Investment Management, now serves as managing member, chief operating officer and chief compliance officer at del Rey. Hechmer and Wheeler, who previously worked together at Tradewinds and Nuveen affiliate NWQ Investment Management, launched del Rey in September 2009 as an institutional international and global value separate account manager.

del Rey offers two share classes of its fund. A shares come with a 500-basis-point maximum load, a 200-bps 60-day redemption fee, and 140 bps in annual expenses. I shares come with the 60-day redemption fee and a 115-bps expense ratio.

Foreside Fund Services serves as the new fund's distributor, while Northern Trust handles administrator, custody and transfer agency. Deloitte & Touche is the outside accounting firm and Willkie Farr & Gallagher provides counsel.

While the Monarch Fund is the first fund to del Rey's name, the boutique is not entirely new to the mutual fund world; in November ING Investments named del Rey as a sub-adviser to its ING International Value Fund, pending shareholder approval. And in April SEI Investments filed to add del Rey as a PM to its International Equity Fund [see The MFWire, 4/5/2011].

---

Company Press Release

LOS ANGELES--del Rey Global Investors, LLC, (“del Rey”) an asset management firm investing primarily in international and global equities, today announced the launch of the del Rey Monarch Fund.

The Monarch Fund is an open-end mutual fund that seeks to deliver long-term capital appreciation by investing primarily in non-U.S. securities believed by the manager to be undervalued at the time of purchase. It is managed by Paul J. Hechmer, del Rey’s founder and an 18-year veteran of the asset management business, including his tenure as a founding member of Tradewinds Global Investors, where he managed the firm’s international portfolios and co-managed several global portfolios.

“We have been extremely pleased by our institutional clients’ interest in our approach to international equity investing since launching del Rey a little more than a year ago,” said Mr. Hechmer. “With the introduction of the del Rey Monarch Fund, we are now making our strategy available to all investors.”

del Rey employs a research-driven, bottom-up, value-oriented approach to the equity markets, seeking to add alpha and manage risk by identifying the best investment opportunities throughout the world. Its research process focuses on industry leading companies it believes to be attractively valued.

The del Rey Monarch Fund is managed using the same philosophy as the firm’s institutional separate accounts. The firm manages more than $1.7 Billion in assets as of April 30, 2011.

The del Rey Monarch Fund is being offered with both Retail, or Class A, and Institutional Shares, or Class I. The Class A Shares carry a maximum sales charge of 5 percent and have a minimum investment of $2,000. The Institutional shares require a minimum investment of $100,000 and are available without a sales charge. The Monarch Fund shares are now, or will soon be, available on a number of national distribution platforms. Both share classes have a 2 percent redemption fee for shares redeemed or exchanged within 60 days.

About del Rey Global Investors, LLC

del Rey Global Investors, LLC (“del Rey”), was founded in September 2009 to focus on international and global strategies for institutional and retail investors. del Rey was established by Paul Hechmer, Chief Investment Officer, and Gerald Wheeler, Chief Operating Officer. The del Rey Global mission is to provide clients with superior risk adjusted returns, over a market cycle, in international and global equity markets. The firm focuses first on preserving wealth and secondly on creating it – both on a relative- and absolute-return basis versus inflation.

del Rey is based in Los Angeles. For more information, please visit (www.delreyglobal.com)

Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the Fund’s prospectus. A free Summary or Statutory prospectus can be obtained by calling 1-866-876-9946 or by sending an e-mail request to prospectusrequest@delreyglobal.com. Please read the prospectus carefully.

Foreign investments involve special risks not included in domestic investments, including currency fluctuations, political instability, differences in financial reporting standards and less stringent regulation of securities markets. These risks are enhanced when investing in securities in Emerging Market countries. Other risks may include convertible securities risk, depositary receipts risk, securities lending risk, Rule 144A securities risk and small and mid-capitalization company risk. Please see the Fund's statutory prospectus for a more complete discussion of the risks of investing in the Fund. The Fund may be appropriate for investors who are willing to ride out short-term stock market fluctuations in pursuit of potentially above-average long-term returns. By itself, the Fund does not constitute a complete investment plan.

Foreside Fund Services, LLC, distributor. 

Edited by: Neil Anderson, Managing Editor


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE