Palmer Square SSI Alternative Income Fund launches

By Toni Weeks

San Diego, May 29 - Investment Managers Series Trust announced in a 497K filing with the Securities and Exchange Commission that it has launched a fund that invests in convertible securities.

The Palmer Square SSI Alternative Income Fund launched with class A shares and class I shares. The ticker symbols are "PSCAX" and "PSCIX," respectively.

The fund will seek income, with absolute returns as a secondary objective, by investing in convertible securities and establishing short positions in the common stock of the issuers of those convertible securities.

The fund seeks returns that exceed prevailing short-term rates and will generally invest in convertible securities that are part of an issuance of at least $40 million.

By combining long positions in convertibles with short positions in the common stock of the same issuers, the fund seeks to maintain a hedged convertible investment portfolio with less volatility and less correlation than with the broader capital markets, prevailing short-term interest rates and capital markets indexes.

According to a press release, investment adviser Palmer Square Capital Management LLC and subadviser SSI Investment Management, Inc. raised $160 million of investment capital in partnership with Montage Investments to launch the fund.

Class A shares will carry a maximum sales charge of 5.75%. There are no other shareholder fees.

Management fees will be 1.3% for both classes. Including other fees and expenses, and taking into account a fee waiver agreement with the adviser, total annual fund operating expenses will be 2.24% for class A shares and 1.99% for class I shares.

George M. Douglas and Alexander W. Volz of SSI will act as portfolio managers.

The fund was previously announced as the "Palmer Square SSI Hedged Convertible Income Strategy Fund" in April, at which time the primary investment objective was absolute returns and the secondary objective was income.

Palmer Square is based in Leawood, Kan.

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