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Ultra-Low Duration Fixed Income Strategy Delivered in an Actively Managed ETF
BETHESDA, Md., Jan. 13, 2014 /PRNewswire/ -- AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), announced today that the AdvisorShares Sage Core Reserves ETF (NYSE Arca: HOLD) will open for trading on Wednesday, January 15, 2014. HOLD is sub-advised by Sage Advisory Services, an Austin, Texas-based asset manager, with deep expertise and experience in fixed income portfolio management and ETF strategies.
The investment objective of HOLD is to preserve capital while maximizing income. Sage seeks to achieve this objective by investing in a broad range of fixed-income securities and U.S. dollar denominated investment grade debt securities, with an average duration of less than one year.
Sage's fixed income investment process applies a balanced, top-down approach focused on actively managing portfolio duration risk, yield curve positioning, market segment allocation and security selection. Sage seeks to make the ultra-low duration portfolio less sensitive to interest rate changes, and provide the ability to be flexible across credit quality and security selection, while minimizing volatility and maintaining a high level of liquidity.
"The threat of rising interest rates and a strong investor appetite for yield may present limited options for efficient ways to access and manage cash holdings," said Noah Hamman, chief executive officer of AdvisorShares. "We believe HOLD delivers a compelling investment solution with the benefits of a liquid, transparent and efficient actively managed ETF by leveraging Sage's well-established track record and expertise as a fixed income manager."
"We believe our unique top-down portfolio management approach, which focuses across a diverse range of fixed income securities, is well-positioned to manage risk and duration in any market or interest rate environment," said Robert G. Smith, president and chief investment officer of Sage. "As a result, we believe our partnership with AdvisorShares can present HOLD shareholders a core portfolio component to help realize their investment goals."
For media inquiries requesting more information on AdvisorShares, please contact Ryan Graham at 202-684-6442 or firstname.lastname@example.org. For financial professionals and investors requesting more information, please visit www.advisorshares.com or call the AdvisorShares Investment Consultant Team at 1-877-THE-ETF1 (1-877-843-3831).
Please visit www.advisorshares.com to register for free weekly economic commentary. For educational insight into the active ETF marketplace, visit www.alphabaskets.com, follow @AdvisorShares on Twitter and 'Like' us on Facebook. Every Thursday at 4:00pm Eastern time, AdvisorShares hosts an educational conference call for Financial Professionals featuring our portfolio managers and leading investment industry experts. This Thursday's call (1/16/14) will feature the HOLD portfolio management team-Dial: 1-800-977-8002; Code: 777534#
AdvisorShares is one of the leading providers of actively managed ETFs. As of 1/9/2014, AdvisorShares offers 18 active ETFs currently trading with approximately $1,080,000,000 of assets under management. AdvisorShares provides educational support to help financial advisors and investors understand the benefits of actively managed ETFs and their underlying investment strategies.
About Sage Advisory Services
Sage is an independent investment management firm, headquartered in Austin, TX, that serves the institutional and private client marketplace with traditional fixed-income asset management, global tactical ETF strategies and liability-driven investment solutions. As of 12/31/13, Sage manages and advises $10 billon in client assets. Please visit www.sageadvisory.com for more information.
Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund's website at www.AdvisorShares.com. Please read the prospectus carefully before you invest.
There is no guarantee that the Fund will achieve its investment objective. Diversification and sector asset allocation do not guarantee a profit, nor do they eliminate the risk of loss of principal. An investment in the Fund is subject to risk, including the possible loss of principal amount invested. The Fund's investment in fixed income securities will change in value in response to interest rate changes and other factors, such as the perception of the issuer's creditworthiness. Fixed income securities with longer maturities are subject to greater price shifts as a result of interest rate changes than fixed income securities with shorter maturities. The Fund's investments in high-yield securities or "junk bonds" are subject to a greater risk of loss of income and principal than higher grade debt securities. In addition the Fund is subject to leveraging risk which tends to exaggerate the effect of any increase or decrease in the value of the portfolio securities. The Fund is also subject to liquidity risk, issuer risk, foreign currency and investment risk, prepayment risk and trading risk. See prospectus for details regarding specific risks.
Duration measures (in years) the sensitivity of the price of a fixed-income investment to a 1% change in interest rates.
Bond credit ratings are published rankings based on detailed financial analyses by a credit bureau specifically as it relates the bond issue's ability to meet debt obligations. The highest rating is AAA, and the lowest is D. Securities with credit ratings of BBB and above are considered investment grade.
The Yield Curve is a graph that plots the yields of similar-quality bonds against their maturities, ranging from shortest to longest.
Shares are bought and sold at market price not net asset value (NAV) and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined) and do not represent the return you would receive if you traded at other times.
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