Displaying items by tag: funds

Interval funds are gaining traction as a compelling investment option, offering high yields and access to exclusive asset classes like private equity and credit. These funds operate as a hybrid between open- and closed-end funds, allowing investors to purchase shares anytime but limiting redemption opportunities to specific intervals, such as monthly or quarterly. 

While their appeal lies in diversifying portfolios and enhancing fixed-income returns, they come with notable downsides, including high fees that often exceed those of traditional mutual funds or index funds. 

Another concern is the limited track record of many funds, making it harder to evaluate long-term performance or compare strategies effectively. Additionally, the valuation of illiquid assets within these funds can mask underlying risks, as daily net asset values may not reflect real-time market conditions. 

Finsum: Investors, interval funds can be a strategic complement to a portfolio, but careful consideration of liquidity, fees, and transparency is essential.

Invesco announced the monthly dividend payments for two of its closed-end funds: Invesco High Income Trust II and Invesco Senior Income Trust. Both funds are maintaining their current monthly dividend rates, with no change from previous distributions. 

The dividend for Invesco High Income Trust II is set at $0.09641 per share, while Invesco Senior Income Trust will pay $0.04301 per share. Under their Managed Distribution Plans, these funds may distribute more than their income, including returning capital to shareholders, which could affect their long-term performance. 

Investors should keep in mind that these returns may not be directly linked to the funds' investment success and may be impacted by market fluctuations and tax regulations. 

Finsum: This might be a great option for investors looking to add income to their portfolio and may compensate for the lack of liquidity. 

BNP Paribas Asset Management has introduced a new ESG active fixed income ETF range, starting with the BNP Paribas Easy Sustainable EUR Corporate Bond and BNP Paribas Easy Sustainable EUR Government Bond ETFs. These ETFs aim to replicate benchmark performance while integrating sustainable principles using BNPP AM's ESG methodology and exclusion policies. 

The firm's Head of Index & ETF Strategies highlighted the agility of this approach in responding to controversies and adapting to changing environmental factors, aligning with sustainability label criteria. BNP made a commitment in January to improving its offerings around ESG offerings and this new suite of investments will fall in line with those goals.

 Lorraine Sereyjol-Garros, Global Head of Development for ETFs & Index Funds at BNPP AM, emphasized the importance of active ESG fixed income management in navigating the challenging market landscape, offering diversification and sustainable credentials in an affordable and convenient ETF structure.

Finsum: Active bond funds could be critical to navigating the landscape of 2024 as macro volatility is looming. 

Bond. James B….. Well, no, not exactly. However, for the first time in 10 years, investors are gaining value in bonds,  according to JPMorgan Chase & Co.’s Bob Michele, as quoted on Bloomberg, reported zacks.com. That’s unfolding in the light of higher interest rates making fixed income more of a financial boon.

“Every wealth-management platform in JPMorgan, every institutional client -- they’re coming to us, they’re putting money in bonds,” Michele told host David Westin. “Bonds are back.” iShares 1-3 Year Treasury Bond ETF (SHY Quick QuoteSHY – Free is off 5.2% this year while the S&P 500 has lost about 17.2%.

Someone say double duty? They address steepling interest rates as well as yielding healthy current income. In the midst of a tumultuous year, this ETF’s proven relatively resilient.

For those who feast on bonds, a handful of potentially winning ETF strategies are highlighted below:

• High-yield interest-hedged ETFs
• ProShares High Yield-Interest Rate Hedged ETF
• Convertible Bond ETFs
• First Trust SSI Strategic Convertible Securities ETF
• Senior Loan ETFs
• TIPS ETFs
• Floating Rate Bond ETFs
• Short-Term Cash-Like ETFs

Meantime, for the period concluding November 30, 2022, the distribution amounts per security (the "Distributions") for certain of its exchange traded funds, recently was announced by Horizons ETFs Management (Canada) Inc., according to finance.yahoo.com.

Exchange traded funds are packing a considerable wallop in the construction of portfolios, according to a global survey on institutional investors on the fixed income market, reported pioonline.com.

They’re strutting an "expanded role in portfolio construction," as reflected by a recently released by survey sponsor State Street Global Advisors, survey sponsor.

Participating in the survey were 700 global institutional investors who oversee asset allocation decisions at pensions funds, wealth managers, asset managers, endowments, foundations and sovereign wealth funds. Administered by an independent firm unaffiliated with SSGA, the survey took place in the middle of the year.

"Our 2022 survey shows that the role of ETFs in asset allocation is expanding to non-core sectors," said the report, "The Role of ETFs in a New Fixed Income Landscape. We can see the increase in use, as compared to our 2021 fixed income survey." 

Meantime, in August, etf.com reported on the apparent hyper popularity of longer duration US Treasuries and investment grade corporate debt ETS among investors in Europe. That has come in the face of lingering doubt over escalating inflation and the reaction by the Fed.

Bloomberg Intelligence data was revealing: it showed fixed income yields attracted more than $4.2bn  over the past three months as of the time of reporting.