Brinker Capital has launched a series of lower-cost, multi-manager mutual funds that will enable it to lower costs for investors and provide greater access for financial advisors and investors, Brinker Capital announced. A major reason behind the new funds was to adapt to changing market conditions created by the DOL fiduciary rule.
The 10 new Destinations Funds are part of the Destinations fee-based mutual fund advisory portfolios, which launched in 1995 and have $9.3 billion in assets under management.
The launch coincides with Brinker Capital’s 30th anniversary on April 17. Brinker Capital is an investment management firm focused on multi-asset class investing based in Berwyn, Pa. The 30-year history of the firm is a point of differentiation from the many new players that are coming into the investment business, says Jason Moore, chief administrative officer at Brinker Capital.
The lower-cost funds, which have a level fee structure, meet the new DOL fiduciary rule, and will enable Brinker Capital to be compliant when the rule is put into effect, Moore says. Even though the fate of the rule has become questionable in the Trump administration, its impact is already reverberating through the investment advisory world.
The fund family will cost investors, on average, about 21 percent less than the rest of Brinker's fund portfolio, according to the company.
The funds, which launched March 20, have expense ratio that range from .79 percent for the Destinations Core Fixed Income (DCFFX) to 1.44 percent for the Destinations Multi Strategy Alternatives Fund (DMSFX).
The account minimum of the Destinations portfolio was lowered to $10,000, making an institutional multi-asset class investment strategy more widely available to individual investors, Brinker Capital says.
“The Destinations Funds combine the deep experience and expertise of our investment team with Brinker Capital’s core competencies of asset allocation and manager selection,” Moore says. “Additionally, the funds provide the portfolio management team with greater flexibility in employing our active and passive investment approach.”
The 10 institutional Destinations funds are the Large Cap Equity Fund, Small-Mid Cap Equity Fund, Equity Income Fund, International Equity Fund, Core Fixed Income Fund, Low Duration Fixed Income Fund, Global Fixed Income Opportunities Fund, Municipal Fixed Income Fund, Real Assets Fund and Multi Strategy Alternatives Fund.
The funds are available on the Fidelity and Pershing institutional no-transaction-fee mutual fund platforms.