AdvisorShares has filed paperwork with the SEC for a “Newfleet Multi-Sector Income ETF.” The Newfleet Multi-Sector Income ETF (the “Fund”) seeks to provide current income consistent with preservation of capital, while limiting fluctuations in net asset value (“NAV”) due to changes in interest rates. AdvisorShares plans to trade this new fund on the NYSE under the ticker: (NYSEARCA:MINC). They did not specify an expense ratio in the initial filing.
PRINCIPAL INVESTMENT STRATEGIES
In seeking to achieve the Fund’s investment objective, Newfleet Asset Management, LLC (the “Sub-Advisor”) applies a time-tested approach and extensive credit research to capitalize on opportunities across undervalued areas of the bond markets. The Fund principally invests in investment-grade securities, which are securities with credit ratings within the four highest rating categories of a nationally recognized statistical rating organization or, if unrated, those securities that the Sub-Advisor determines to be of comparable quality. The Sub-Advisor seeks to provide diversification by allocating the Fund’s investments among various sectors of the fixed income markets, which, as of the date of this Prospectus, include: corporate investment grade, corporate high yield, bank loans, non-agency commercial mortgage-backed securities (“CMBS”), agency and non-agency residential mortgage-backed securities (“RMBS”), non-U.S. dollar securities, emerging market high yield, Yankee investment grade bonds, asset-backed securities, taxable municipal bonds, tax-exempt municipal bonds, and securities issued or guaranteed as to principal and interest by the U.S. government, its agencies, authorities or instrumentalities. As a result, the Fund’s fixed income investments may be issued by various types of issuers and may include some or all of the following:
- Securities issued or guaranteed as to principal and interest by the U.S. government, its agencies, authorities or instrumentalities, including collateralized mortgage obligations (“CMOs”), real estate mortgage investment conduits (“REMICs”) and other pass-through securities;
- Debt securities issued by foreign issuers, including foreign governments and their political subdivisions;
- Investment-grade securities issued primarily by U.S. issuers and secondarily by non-U.S. issuers; and
- High yield debt instruments, including bank loans, which are generally floating-rate loans.
The average duration of the Fund’s fixed income investments will range from one to three years. The Fund may invest up to 20% of its total assets in securities that are rated below investment grade at the time of purchase. If certain of the Fund’s holdings experience a decline in their credit quality and fall below investment grade, the Fund may continue to hold the securities and they will not count toward the Fund’s 20% investment limit. Generally, the Fund will limit its investments in corporate high yield securities to 10% of its assets and will limit its investments in non-U.S. issuers to 30% of its assets.
For the complete filing click: HERE