Robinson Capital Management Launches SPAX, the First Pre-Merger SPAC ETF
GROSSE POINTE FARMS, Mich., June 23, 2021 (GLOBE NEWSWIRE) -- Robinson Capital Management, LLC, an independent investment advisor specializing in alternative fixed income strategies, today announced the launch of the Robinson Alternative Yield Pre-Merger SPAC ETF (ticker: SPAX). The ETF is actively managed and is the first ETF to invest primarily in pre-merger SPACs. The SPAX portfolio management team, which has extensive fixed income experience and a long-term history of identifying successful managers and companies, seeks to provide total returns in excess of cash equivalents and short-to-intermediate duration fixed income, while ultimately seeking to protect investors’ capital.
“As a 40-year veteran of fixed income trading and management, I have never seen a more attractive vehicle than the pre-merger SPAC structure. It has the credit and interest rate risk of a T-Bill portfolio; a base case return profile of the high yield bond market; and the upside potential of a strong equity market,” said James Robinson, CEO and CIO, Robinson Capital Management. “We are excited to bring this timely alternative solution to yield-starved fixed income investors; and wrapping the strategy in an ETF provides greater tax sensitivity and intraday liquidity.”
The Robinson Alternative Yield Pre-Merger SPAC ETF is actively managed and will invest at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities, specifically, units and shares of common stock and warrants, of U.S.-listed Special Purpose Acquisition Companies (“SPACs”).
Robinson Capital invests primarily in pre-merger SPACs because of the tendency for downside mitigation (ability to redeem shares at $10/share), upside opportunity when a merger is announced, and almost zero correlation with traditional fixed income markets. Robinson attempts to purchase SPAC shares below trust value in order to generate a positive yield and higher overall returns. Given the attractive risk versus return characteristics, the manager believes SPAX is a compelling alternative for many traditional fixed income portfolios.
Robinson Capital partnered with the team at Tidal ETF Services to bring SPAX to market.
ABOUT ROBINSON CAPITAL
Founded in December 2012, Robinson Capital Management, LLC, is an independent investment advisor specialized in developing traditional and alternative fixed income solutions. Robinson’s investment approach employs both fundamental and value techniques to best identify positive risk/reward opportunities and to maintain a consistent and disciplined approach. Robinson Capital also specializes in alternative value investing strategies, particularly through special purposes acquisition companies (SPACs) and closed-end mutual funds (taxable and tax-exempt).
Robinson Capital provides customized investment management services for RIAs, family offices, broker-dealers and institutions.
The firm serves as investment sub-adviser to the Robinson Alternative Yield Pre-Merger SPAC ETF (ticker: SPAX). For more information, visit, robinsonetfs.com.
ABOUT TIDAL ETF SERVICES
Formed by ETF industry pioneers and thought leaders, Tidal is a boutique multi-manager ETF platform whose mission is to disrupt the way ETFs have historically been developed, launched, marketed and sold. With a transparent, partnership approach, Tidal offers a comprehensive suite of services, proprietary tools, and methodologies designed to bring lasting ideas to market. As advocates for ETF innovation, Tidal helps institutions and RIAs launch interesting and viable ETFs. For more information, visit tidaletfservices.com.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, click here. Read the prospectus or summary prospectus carefully before investing.
Investing involves risk. Principal loss is possible. ETFs may trade at a premium or discount to their net asset value. Brokerage commissions are charged on each trade which may reduce returns.
The Fund invests in equity securities and warrants of SPACs, which raise assets to seek potential business combination opportunities. Unless and until a business combination is completed, a SPAC generally invests its assets in U.S. government securities, money market securities, and cash. Because SPACs have no operating history or ongoing business other than seeking a business combination, the value of their securities is particularly dependent on the ability of the entity’s management to identify and complete a profitable business combination. There is no guarantee that the SPACs in which the Fund invests will complete a business combination or will be profitable.
Some SPACs may pursue a business combination only within certain industries or regions, which may increase the volatility of their prices. To the extent a SPAC or the fund is invested in cash or cash equivalents, this may impact the ability of the Fund to meet its investment objective. Investments in a SPAC may be considered illiquid and subject to restrictions on resale.
The Fund may purchase warrants to purchase equity securities. Investments in warrants are pure speculation in that they have no voting rights and pay no dividends. They do not represent ownership of the securities, but only the right to buy them. Warrants involve the risk that the Fund could lose the purchase value of the warrant if the warrant is not exercised or sold prior to its expiration. The Fund may also purchase securities of companies that are offered in an IPO. The risk exists that the market value of IPO shares will fluctuate considerably due to factors such as the absence of a prior public market, unseasoned trading, a small number of shares available for trading and limited information about the issuer. Such investments could have a magnified impact on the Fund.
Some sectors of the economy and individual issuers have experienced particularly large losses due to economic trends, adverse market movements and global health crises. This may adversely affect the value and liquidity of the Fund’s investments especially since the fund is non-diversified, meaning it may invest a greater percentage of its assets in the securities of a particular, industry or sector than if it was a diversified fund. As a result, a decline in the value of an investment could cause the Fund’s overall value to decline to a great degree.
The Fund is a recently organized management investment company with limited operating history and track record for prospective investors to base their investment decision.
The Fund is distributed by Foreside Fund Services, LLC.
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