ALPS Advisors Files Papers For Global Fixed-Income Active ETF
Tue, Jul 27, 7:11 AM ET, by Shishir Nigam, ActiveETFs | InFocus
On July 22nd, ALPS Advisors filed a preliminary prospectus for an actively-managed ETF that will focus on investing globally in fixed-income securities. The fund will be called the RiverFront Strategic Income Fund. ALPS Advisors was one of the first companies to actively market ETFs to the financial adviser community when ETFs were first launched in the US in the 90s. ALPS currently manages $92 million in ETF assets as of June 2010, according to NSX data, amongst 6 different ETFs. ALPS also acts as the distributor for the Select Sector SPDR ETFs as well as funds from United States Commodity Funds such as USO and UNG.
The investment advisor on the planned Active ETF will be Grail Advisors, the company that has provided a platform for various companies to launch their actively managed funds as ETFs. The sub-advisor on the fund will be RiverFront Investment Group, which was established in 2008 by the former CIO of Wachovia Securities. RiverFront is based out of Richmond, Virginia and managed $1.8 billion in assets as of March 31, 2010. The portfolio will be invested in global fixed-income securities of all types, origins and currencies. The prospectus casts a very wide net with regards to securities that the fund may invest in as there is no credit rating criterion that has been established and the fund may be entirely invested in junk bonds if the managers choose to do so. One restriction that is in place disallows the fund from investing more than 25% of assets in any one industry. ALPS will act as the "administrator" for the ETF.
RiverFront Strategic Income Funds' total operating expenses will be 0.24% but it is kept at that level only thanks to a fee waiver of 0.25% on the part of Grail Advisors that will be effective for at least 18 months.
Such a fund could definitely be a complementary part of a portfolio that is largely made up of equities, providing diversification through international bond investments. There are now several actively-managed ETFs in the works that will provide investors with exposure to international and especially emerging market bonds. These include the Grail DoubleLine Emerging Market Fixed Income ETF and WisdomTree's Emerging Market Local Debt Fund, both of which are under filing with the SEC.
Disclosure: No positions in above-mentioned names.
If you haven't already subscribed to ActiveETFs | InFocus, do it here via Email or via RSS feed!
Disclaimer: Views and opinions expressed on EtfsHub are those of the author alone and do not in any way represent the official views, positions or opinions of the employers - both past or present - of the author in question, or any other institutions and corporations associated with the author. Neither the information nor any opinions contained or expressed above and elsewhere on EtfsHub constitutes or should be construed as a solicitation or offer by EtfsHub to buy or sell any securities or other financial instruments or to provide any investment advice or recommendations. None of the material above and elsewhere on EtfsHub is intended to endorse or promote any company or its products. EtfsHub shall not be liable for any claims or losses of any nature, arising indirectly or directly from use of the information on or accessed through the site. Please see full disclaimers here.
 
SDI Glossary: "Debt" Definition
SDI Glossary: "ETFs" Definition
SDI Glossary: "Sector" DefinitionThis Article's Word Cloud:
ALPS
Advisors
ETFs
EtfsHub
Fund
Grail
Income
Market
RiverFront
Share
Strategic
above
actively
advisor
assets
author
bonds
companies
company
elsewhere
expressed
financial
first
fixed
from
fund
funds
here
income
international
invested
investing
investment
managed
market
nbsp
opinions
other
part
portfolio
positions
prospectus
provide
securities
that
this
through
which
will
with
More articles: 1 2 3 4 5 6 7 next »
| 
RSS