DBEH — iM DBi Hedge Strategy ETF

DBEH Fund Overview

DBEH — iM DBi Hedge Strategy ETF is a US ETF managed by Manager Directed Portfolios, categorised as Money Market. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: Manager Directed Portfolios
• Category: Money Market
• Assets under management: $21.98M
• 1-year return: 28.8%
• Ticker: DBEH
• SEC CIK: 0001359057
• SEC series ID: S000066474
• Share class ID: C000214391

DBEH Investment Objective and Strategy

iM DBi Hedge Strategy ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Manager Directed Portfolios.

Investment objective

The iM DBi Hedge Strategy ETF (the Fund) seeks long-term capital appreciation.

Principal investment strategy

The Fund is a non-diversified, actively-managed exchange-traded fund (ETF) that seeks to achieve its objective by: (i) investing its assets pursuant to an equity hedge strategy (described below); and (ii) allocating the remainder of its assets directly in a portfolio of investment grade debt securities to collateralize its derivatives investments, for liquidity purposes, or to enhance yield. The Fund seeks to model its investments after long/short equity hedge fund strategies and does not invest in hedge funds. Because the Fund is not a hedge fund, the Fund will be limited in its ability to fully replicate hedge fund strategies due to regulatory requirements, including limitations on leverage and liquidity of the Funds investments. The Fund invests in long and short positions in exchange-traded futures contracts across the broad asset classes of equities, fixed income, and currencies.

The long and short positions in the futures contracts are determined by the Funds sub-adviser, Dynamic Beta investments (DBi or the Sub-Adviser), using a proprietary, quantitative model the Dynamic Beta Engine. The Dynamic Beta Engine is designed to identify the main drivers of performance of a diversified portfolio of the largest long/short equity hedge funds, which are hedge funds that employ fundamental analysis to buy or sell short individual equity securities to achieve their respective investment objectives (Equity Hedge funds). Equity Hedge funds typically diversify their risks by limiting the hedge funds net exposure to certain industries, regions, or market capitalizations, which allows them to focus on company-specific characteristics. Equity Hedge funds often hedge against the returns of the overall market.

The Fund will not necessarily use its long and short positions to reduce risk by taking offsetting positions. The Fund may take uncorrelated positions ( e.g. , invest in long and short futures contracts with values that do not historically exhibit a strong relationship to each other), which may increase the Funds overall market exposure and risk. DBi has conducted extensive research into the drivers of performance of hedge funds and believes that individual security selection by the target Equity Hedge funds can deliver market outperformance over time through shifts in asset allocation among major equity markets. For example, if fundamentally-driven hedge fund managers collectively determine that stocks in emerging markets are more attractive than those in developed markets, the Dynamic Beta Engine can identify this and shift asset allocation exposures accordingly.

Based on this model, the Fund will invest in an optimized portfolio of long and short positions in U.S. exchange-traded futures contracts, as determined by the Sub-Adviser. This process is repeated monthly, with all positions rebalanced at that time. The Dynamic Beta Engine analyzes recent historical performance of a diversified pool of the largest Equity Hedge funds in order to estimate the current asset allocation of a selected pool of Equity Hedge funds. The Sub-Adviser relies exclusively on the model and does not have discretion to override the model-determined asset allocation or portfolio weights. Investing in a limited number of highly liquid futures contracts and monthly rebalancing is expected to keep transaction costs low relative to Equity Hedge funds. The model seeks to replicate Equity Hedge funds by analyzing historical returns of Equity Hedge funds provided by a third-party data provider and identifying futures contracts that most closely reflect the Equity Hedge funds estimated current exposures across the various asset classes.

Futures contracts are contractual agreements to buy or sell a particular equity index, currency, or financial instrument at a pre-determined price in the future. The Fund will invest in a limited number of highly-liquid futures contracts (including futures contracts on underlying instruments such as listed U.S. equity indices, baskets of currency, and U.S. treasury securities) that the Sub-Adviser believes exhibit the highest correlation to what the Sub-Adviser perceives to be the core positions of the target Equity Hedge funds, which are generally long and short positions of individual equity securities. The Fund will take long and short positions in U.S. exchange-traded derivative contracts viewed as highly liquid by the Sub-Adviser. The Sub-Adviser will use quantitative methods to assess the level of risk for the Fund.

The Fund may invest in derivative contracts that have an aggregate notional value that is greater than the Funds total assets. The notional value of a derivatives contract is the market value of the asset underlying the derivatives contract. Aggregate notional value is the sum of the notional values of the Funds derivatives contracts. The Funds aggregate notional value is intended to approximate the current risk profile of a diversified pool of the largest Equity Hedge funds. The Investment Company Act of 1940, as amended (the 1940 Act), and the rules and interpretations thereunder, impose certain limitations on the Funds ability to use leverage, which is inherent in the futures positions held by the Fund. Volatility is a statistical measure of the frequency and level of changes in the Funds returns over time without regard to the direction of those changes.

Higher volatility generally indicates higher risk. Under normal market conditions, the Sub-Adviser, on average, will target an annualized volatility level for the Fund of 8-10%. The Fund expects, under normal circumstances, to collateralize its derivative investments, for liquidity purposes, or to enhance yield, to invest a large portion of the portfolio in investment grade debt securities. The Fund may hold fixed income instruments of varying maturities, but that have an average duration of less than one year. In particular, the Fund may hold government money market instruments, such as U.S. Treasury securities and U.S. government agency discount notes and bonds with maturities of two years or less. Because the Fund is non-diversified, it may invest a greater percentage of its assets in a particular investment or issuer than a diversified fund.

DBEH Performance

Total returns for DBEH (as of 2026-10-01), from SEC filings.

DBEH Risk Information

Risk metrics for DBEH, derived from monthly returns in SEC filings.

• 1-year volatility (annualised): 11.7%

DBEH Costs and Fees

DBEH costs about $85 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.85%
• Gross expense ratio: 0.85%

DBEH Cashflows

Over the 12 months to 2021-06, iM DBi Hedge Strategy ETF had net inflows of $32.06M, from monthly SEC N-PORT filings.

DBEH Debt Constituents

No individual debt constituents are reported in iM DBi Hedge Strategy ETF's latest SEC N-PORT filing.

DBEH Prospectus and SEC Filings

Official iM DBi Hedge Strategy ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2021-04-29
• Prospectus (485BPOS) — filed 2020-05-07
• Prospectus (485BPOS) — filed 2019-12-17
• Portfolio holdings (N-PORT) — filed 2021-08-23
• Portfolio holdings (N-PORT) — filed 2021-05-27
• Portfolio holdings (N-PORT) — filed 2021-02-26
• Annual census (N-CEN) — filed 2021-03-16
• Annual census (N-CEN) — filed 2020-03-12

Related Funds

Other Money Market funds tracked on ABC INVEST:

• Emerald Growth Fund (HSPCX)
• Barings Active Short Duration Bond Fund (BXDIX)
• IVA Worldwide Fund (IVWAX)
• Stadion Tactical Growth Fund (ETFDX)
• BBH Partner Fund - Select Short Term Assets (BBSTX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.