Cambria Investment to launch sovereign bond fund, global currency fund

By Toni Weeks

San Luis Obispo, Calif., Aug. 27 – Cambria ETF Trust said it plans to offer two new exchange-traded funds, one that gives exposure to sovereign and quasi-sovereign bonds, and the other that gives exposure to the global currency and bond markets independent of market direction.

According to separate N-1A filings with the Securities and Exchange Commission, the Cambria Sovereign High Yield Bond ETF will seek income and capital appreciation. Under normal market conditions, the fund will invest at least 80% of its net assets in sovereign and quasi-sovereign high-yield bonds of emerging and developed countries and in securities and instruments that provide exposure to such securities, including exchange-traded products, exchange-traded notes and ETFs.

The second fund, the Cambria Global Income and Currency Strategies ETF, will seek income and capital appreciation by investing in securities and other instruments that provide income and exposures to global currencies from both developed and emerging market countries. Under normal market conditions, the fund will invest at least 80% of its net assets in income-producing securities and global currencies through investments in, among others, forward foreign currency contracts; global currencies and exchange-traded products that invest in global currencies; sovereign and corporate debt securities of any credit quality, duration and maturity that are denominated in U.S. dollars or foreign currencies; and exchange-traded products and exchange-traded notes that invest in or provide exposure to global currencies or gold.

Mebane T. Faber and Eric W. Richardson are the portfolio managers for both funds.

The funds will trade on the NYSE Arca.

The sovereign bond ETF will trade under the ticker symbol “SOVB.” Including a management fee of 0.59%, its total annual fund operating expenses are expected to be 0.59%.

The global currency fund will trade under the ticker symbol “FXFX.” Including a management fee of 0.69%, its total annual fund operating expenses are expected to be 0.79%.

Shareholder fees were not mentioned in the filings.

El Segundo, Calif.-based Cambria Investment Management, LP will be the investment adviser to the funds.

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