Value-focused IVA Funds files to liquidate, close up shop

Value-focused IVA Funds files to liquidate, close up shop
Faced with shrinking assets and performance challenges, the $2.5 billion boutique asset manager will shutter its two funds next month.
MAR 11, 2021

IVA Funds, a 12-year-old value shop managing nearly $2.5 billion in two mutual funds, filed on Wednesday with the Securities and Exchange Commission to start a liquidation process “with the intention of deregistering as an investment adviser and terminating its existence.”

The New York-based boutique asset manager did not immediately respond to a request for comment, but according to the filing, the liquidations are expected to take place “on or about April 19, 2021.”

Both the IVA Worldwide Fund (IVWIX) and the IVA International Fund (IVICX) were launched in October 2008 and have had relative success attracting assets over a period that has been challenging for value strategies.

Recent performance challenges at a time when growth stocks continue to charge on have likely contributed to asset outflows from the funds, according to Todd Rosenbluth, director of mutual fund and ETF research at CFRA.

“It is extremely rare for mutual funds with a significant asset base to liquidate rather than seek to sell the funds to another asset manager especially since the value investment style has shown signs of returning to favor in 2021,” he said. “Asset manager consolidation has been increasing as firms seek to round out their offerings and benefit from scale.”

The IVA Worldwide Fund, which has a two-star rating from Morningstar in the world large stock category, has seen assets drop to $1.9 billion from $2.1 billion at the start of the year, when the fund had a 36% allocation to cash.

The fund’s 5.7% return this year through Wednesday ranks it in the 23rd percentile of the category, but the 70-basis point decline in 2020 and 12.7% gain in 2019 ranked it in the 90th and 82nd percentiles, respectively.

The fund’s 12-month trailing return through February was 10.6%, which compares to 30.3% for the benchmark MSCI All Country World Index.

The IVA International Fund, which has a two-star rating in Morningstar’s foreign large-blend category, has seen assets drop to $534 million from $862 million at the start of the year, when it reported a 37.5% cash position.

The fund’s 3% gain this year ranks it in the 66th percentile. The 4.9% decline in 2020 and 13.4% gain in 2019 each ranked the fund in the 99th percentiles.

The fund’s 12-month trailing return through February of 6.5% compares to a 26.2% gain for the MSCI All Country World Index.

Value strategies in general clearly have faced a challenge, but IVA appears to have had some extra challenges, including the sudden departure of co-chief investment officer Charles de Lardemelle last July, at a time when the Worldwide Fund had $3.3 billion and the International Fund had $1.5 billion.

More fund companies roll out nontransparent ETFs

Latest News

Advisor moves: LPL welcomes $750M Osaic team, Raymond James recruits Wells Fargo duo in New York
Advisor moves: LPL welcomes $750M Osaic team, Raymond James recruits Wells Fargo duo in New York

Elsewhere in Utah, Raymond James also welcomed another experienced advisor from D.A. Davidson.

UBS loses arbitration battle in fiduciary fight over foundation funds
UBS loses arbitration battle in fiduciary fight over foundation funds

A federal appeals court says UBS can’t force arbitration in a trustee lawsuit over alleged fiduciary breaches involving millions in charitable assets.

RIA moves: NorthRock adds $800M Parkside Advisors, NFP acquires Levine Group in Tennessee
RIA moves: NorthRock adds $800M Parkside Advisors, NFP acquires Levine Group in Tennessee

NorthRock Partners' second deal of 2025 expands its Bay Area presence with a planning practice for tech professionals, entrepreneurs, and business owners.

Three easy ways to boost your firm’s impact this summer
Three easy ways to boost your firm’s impact this summer

Rather than big projects and ambitious revamps, a few small but consequential tweaks could make all the difference while still leaving time for well-deserved days off.

Hightower taps Osaic alum Scott Hadley as first chief advisory officer, expands C-suite
Hightower taps Osaic alum Scott Hadley as first chief advisory officer, expands C-suite

Hadley, whose time at Goldman included working with newly appointed CEO Larry Restieri, will lead the firm's efforts at advisor engagement, growth initiatives, and practice management support.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.