Alger Launches Second High Conviction, Focused Actively Managed Exchange Traded Fund

By Dana Cone.
Updated May 4, 2021

NEW YORK (PRWEB) May 04, 2021 - Fred Alger Management, LLC (Alger), a leading growth equity investment manager, today announced the launch of Alger 35 ETF (ATFV), a high-conviction, actively managed exchange traded fund (ETF). It will invest in 35 best ideas sourced from the firms experienced analyst team.

Alger 35 ETF will be managed by Dan Chung, CEO and chief investment officer of Alger. Dan, who has 27 years of investment experience, is also a portfolio manager on several of Algers long only and long/short growth equity strategies. The ETF will execute a strategy similar to the Alger 35 Fund, a five-star Morningstar rated fund, which launched in 2018.

We launched our first focused strategy in 2012 and have seen increased client demand and notable asset flows into the strategies since then. By offering an actively managed ETF, investors can access our investment capabilities combined with the liquidity and potential cost benefits of an ETF vehicle, said Dan. The number 35 has special and personal meaning to me, as I lost 35 of my colleagues on September 11th nearly 20 years ago. As a way of honoring them, we will donate 5% of the net management fee of ATFV to charities and causes that were important to these Alger employees who perished.

Alger previously launched the Alger Mid Cap 40 ETF earlier this year, a focused portfolio of 40 high-conviction mid cap growth equities managed by Amy Y. Zhang, CFA.

Alger has licensed ActiveShares from Precidian Investments, LLC, which enables the firm to deliver actively managed investment strategies in an ETF vehicle without disclosing holdings daily. The ETFs will be listed on the NYSE Arca, Inc., which currently lists nearly 80% of all U.S. ETF assets under management.

The ability to potentially shield our strategies underlying holdings enables our investment team to construct these high-conviction portfolios with confidence. Our in-depth, fundamental research process, which we have refined for more than 55 years, is critical to our quest to generate strong, long-term returns on behalf of our clients, added Dan.

About Alger Founded in 1964, Alger is widely recognized as a pioneer of growth-style investment management. Headquartered in New York City with affiliate offices in Boston and London, Alger provides U.S. and non-U.S. institutional investors and financial advisors access to a suite of growth equity separate accounts, mutual funds, and privately offered investment vehicles. The firms investment philosophy, discovering companies undergoing Positive Dynamic Change, has been in place for over 50 years. Weatherbie Capital, LLC, a Boston-based investment adviser specializing in small and mid-cap growth equity investing is a wholly-owned subsidiary of Alger. For more information, please visit http://www.alger.com.

The views expressed are the views of Fred Alger Management, LLC (FAM) and its affiliates as of May 2021. These views are subject to change at any time and may not represent the views of all portfolio management teams. These views should not be interpreted as a guarantee of the future performance of the markets, any security or any funds managed by FAM. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.

Effective on or about May 7, 2021, Class P shares of the Alger 35 Fund will be reclassified as Class Z. Class Z Shares will have the same total expense ratio and characteristics as the existing Class P Shares.

Risk Disclosures: Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be invested in technology companies, which may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies. Investments in the Consumer Discretionary Sector may be affected by domestic and international economies, consumers disposable income, consumer preferences and social trends. Industrial companies may be impacted by supply and demand for their products, government regulations, technological developments, and government spending. Investing in companies of small and medium capitalizations involve the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. The Fund is classified as a non-diversified fund under federal securities laws because it can invest in fewer individual companies than a diversified fund. Assets may be focused in a small number of holdings, making them susceptible to risks associated with a single economic, political or regulatory event than a more diversified portfolio.

This ETF is different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks for your investment. Specifically:

The differences between this ETF and other ETFs may also have advantages. By keeping certain information about the ETF confidential, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETFs performance. If other traders are able to copy or predict the ETFs investment strategy, however, this may hurt the ETFs performance. For additional information regarding the unique attributes and risks of this ETF, please refer to the prospectus. The Fund is an actively managed ETF that does not seek to replicate the performance of a specified index. The Fund does not provide daily disclosure of its portfolio holdings, but instead provides a verified intraday indicative value (VIIV) calculated and disseminated every second throughout the trading day. The VIIV is designed to be a highly correlated per share value of the underlying portfolio, but there is a risk that market price of the Fund may vary significantly from its NAV. The VIIV Calculation Methodology and a historical daily comparison of the Funds VIIV to its NAV is available on http://www.alger.com. The Fund trading on the basis of a VIIV may trade at a wider bid/ask spread than ETFs that publish their portfolios on a daily basis, especially during periods of market disruption or volatility, and, therefore, may cost investors more to trade. Although the Fund seeks to benefit from keeping its portfolio information confidential, market participants may attempt to identify a Funds trading strategy, which, if successful, could result in such market participants engaging in certain predatory trading practices that may have the potential to harm the Fund and its shareholders. The Funds shares trade in the secondary market on NYSE Arca, Inc. and therefore may experience associated risks, such as the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility, and disruptions in the creation and/or redemption process of the Fund. Any of these factors may cause the Funds shares to trade at a premium or discount to NAV. Creations and redemptions in the Fund occur through an agent called an AP Representative who is not obligated to engage in creations or redemptions. The Fund may have a limited number of AP Representatives and if AP Representatives are not able to proceed with creations and/or redemptions the Funds shares may trade at a discount to NAV and possibly face trading halts and/or delisting, and investors could experience significant losses as a result.

2021 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a funds monthly performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating may differ among share classes of a mutual fund as a result of different sales loads and/or expense structures. It may be based in part, on the performance of a predecessor fund. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. Alger 35 Fund P was rated 5 Star(s) for the 3-year period among 1,186 Large Growth funds as of 3/31/21.

Rankings and ratings may be based in part on the performance of a predecessor fund or share class and are calculated by Morningstar using a performance calculation methodology that differs from that used by Fred Alger Management, Inc.s. Differences in the methodologies may lead to variances in calculating total performance returns, in some cases this variance may be significant, thereby potentially affecting the rating/ranking of the Fund(s). When an expense waiver is in effect, it may have a material effect on the total return or yield, and therefore the rating/ranking for the period.

Before investing, carefully consider a Funds investment objective, risks, charges, and expenses. For a prospectus and summary prospectus containing this and other information or for the Funds most recent month-end performance data, visit http://www.alger.com, call (800) 992-3863 or consult your financial advisor. Read the prospectus and summary prospectus carefully before investing.

Distributor: Fred Alger & Company, LLC. Alger Mid Cap 40 ETF and Alger 35 ETF listed on NYSE Arca, Inc. NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.