Displaying items by tag: active management

Invesco, which is the fourth-largest U.S. ETF firm based on total assets, recently filed for four actively managed fixed-income ETFs. The fund firm is currently best known for its index-based funds and custom index strategies. However, the company is looking to branch out by adding actively managed fixed income to its stable. In a series of regulatory filings, the firm filed for four ETFs, including the Invesco High Yield Select ETF, the Invesco Municipal Strategic Income ETF, the Invesco Short Duration Bond ETF, and the Invesco CLO Floating Rate Note ETF. The Invesco High Yield Select ETF will be run by a team of managers led by Niklas Nordenfelt who currently leads Invesco’s High Yield fixed income team and recently took over the Invesco High Yield mutual fund. The Invesco Municipal Strategic Income ETF will invest 50%–65% of its assets in low- to medium-quality municipal securities, which the company defines as bonds rated BBB. The Invesco Short Duration Bond ETF will utilize the Bloomberg 1-3 Year Government/Credit Index as a reference in designing the portfolio. The Invesco CLO Floating Rate Note ETF will primarily invest in collateralized loan obligations that have limited interest rate sensitivity and strong credit profiles.

Finsum:Invesco is looking to expand its ETF product line with the registration of four actively managed bond ETFs.

AllianceBernstein recently announced the launch of its first set of active exchange-traded funds. The funds, which trade on the NYSE, include the AB Ultra-Short Income ETF (YEAR) and the AB Tax-Aware Short Duration Municipal ETF (TAFI). YEAR is an actively managed ETF that aims to deliver higher levels of yield relative to cash or cash-like investments while aiming for capital preservation in all market cycles. TAFI is an actively managed municipal bond strategy that offers municipal bond investors a distinct complement to their core allocations providing the opportunity to help maximize after-tax income and returns using shorter maturity bonds and opportunistic exposure to treasuries and taxable bonds. The launch comes only seven months after the firm announced plans to build a global ETF business under Noel Archard, who joined the company in February as global head of ETFs and portfolio solutions. Archard commented on the launch, "Today's ETF launch is an exciting achievement for our firm. ETFs have evolved into an important execution tool across asset classes, and amidst the recent market volatility, we feel it is critical to offer our clients diversity and efficiency.”

Finsum:AllianceBernstein launched two active fixed ETFs as part of its plans to build a global ETF business.

A manager at Artemis believes now is the perfect time to consider active fixed income solutions. Grace Le, who co-manages the Artemis Corporate Bond Fund, told Financial Times that an active bond manager’s job is to protect their clients during uncertain times and that is exactly what we are experiencing now. She believes that the reversal of quantitative easing led to more volatility in bond markets, resulting in a “boon for active investors.” Investors are dealing with inflation, macroeconomic uncertainty, and the potential for a recession. Muzinich & Co's co-head of public markets Michael McEachern told the publication that active managers can invest in shorter-duration bonds less impacted by increasing rates and rotate into higher-quality credit that is less sensitive to the current environment. Managers can also avoid concentration in a portfolio and deploy carry trades, which means borrowing at a low-interest rate and investing in an asset that provides a higher return.

Finsum:According to two bond fund managers,investors should consider active fixed income in times of economic and market uncertainty. 

Touchstone Investments, which is known for its Distinctively Active® funds, recently announced the launch of its fourth actively managed ETF, the Touchstone Ultra Short Income ETF (TUSI). The fund, which started trading on the Cboe BZX, seeks maximum total return consistent with the preservation of capital by primarily investing in a diversified portfolio of investment grade fixed income securities. Its portfolio is managed to maintain an effective duration of one year or less under normal market conditions. Managers for TUSI buy fixed-income securities believed to be attractively priced relative to the market or similar securities. The launch follows three actively managed ETFs launched during the summer including the Touchstone Strategic Income Opportunities ETF (SIO), the Touchstone US Large Cap Focused ETF (BZX), and the Touchstone Dividend Select ETF (DVND). Each ETF has a corresponding mutual fund that shares a similar investment strategy. All four ETFs are sub-advised by Fort Washington Investment Advisors. 

Finsum:Touchstone Investments recently launched the Touchstone Ultra Short Income ETF, its fourth actively managed ETF launch this summer.

Fixed income investors might feel lost in the current environment, but with yields starting to generate real income and prices ultra-low it might be the perfect buying opportunity. A new series of bond ETFs centered around treasuries was launched to capitalize on this unique time in the bond market. Slope Capital LLC and Genoa Asset Management LLC launched 10-year (UTEN.O), two-year (UTWO.O), and three-month (TBIL.O) dropped ETFs that will hold the most recent current Treasuries in the respective categories. Managers of the funds say this is well crafted precise tool for the fixed income investors that need a product like this. It gives new potential to bond investors in a precise way to tailor portfolios. There has been a flood into fixed income products as of late and funds are launching rapidly in response and will continue over the next half-decade.

Finsum: These tools can be utilized for investors wanting bond exposure, but not wanting to deal with the task of trading in the treasuries market and constantly updating