AdvisorShares Investments, LLC, an investment adviser to actively managed exchange traded funds (ETFs), announced that it will begin trading in the industry’s first actively managed international ETF, the WCM/BNY Mellon Focused Growth ADR ETF (NYSE: AADR) tomorrow, July 21st. AADR is sub-advised by institutional money manager WCM Investment Management (WCM). BNY Mellon is the world’s largest depositary for American Depositary Receipts (ADRs) and will provide the primary benchmark to the Fund as well as expertise within the ADR industry to the portfolio management team. WCM will implement its investment strategy through the use of ADRs which may be attractive to U.S. investors for accessing international markets, but also provide convenience from a trading and settlement perspective.
“WCM Investment Management has experience with this strategy within other investment vehicles which follow this very thoughtful fundamental investment process to construct their portfolios. We are excited to bring investors special access to this unique, first of its kind strategy as well as to this institutional quality investment advisory firm,” said Noah Hamman, CEO and Founder of AdvisorShares.
The investment objective of AADR is long-term capital appreciation above international benchmarks such as the BNY Mellon Classic ADR Index and the MSCI EAFE Index. AADR strives to provide a high-quality, large-cap growth portfolio for the non-U.S. universe. The portfolio, which includes developed and emerging markets, is purposely very different from international benchmarks and other international funds. WCM achieves this differentiation by concentration (20-30 holdings) and an emphasis on traditional growth sectors such as technology, healthcare and consumer staples/discretionary. The AADR portfolio management team seeks to invest in businesses that appear likely to benefit from long-lasting global trends (tailwinds), growing competitive advantages (a widening economic moat) and a superior corporate culture (great people). Finally, WCM recognizes the role valuation plays in investment returns and therefore seeks to pay a reasonable price for companies.
WCM Investment Management President and Co-CEO Paul R. Black said, “At WCM, our investment strategy is driven by timeless principles that we believe are poised to outperform extremely inefficient international benchmarks.” Black added, “In bringing AADR to market with AdvisorShares, we can now offer our investment philosophy via an exchange traded vehicle which will be available to those institutional as well as retail investors who ordinarily would not have access to our firm.”
AdvisorShares is a turnkey platform for investment managers seeking to offer their investment strategy in an actively managed ETF. AdvisorShares works with some best-of-breed money managers to combine their money management expertise with the benefits the ETF structure provides. AdvisorShares provides sales, marketing and educational support to help financial advisors use AdvisorShares ETFs to help them achieve their clients’ investment goals and objectives. AdvisorShares actively manages ETFs, including the Dent Tactical ETF (NYSE: DENT) and the Mars Hill Global Relative Value ETF (NYSE: GRV), and is dedicated to investor education. Fund.com is the majority owner of AdvisorShares Investments, LLC. Visit our website at http://www.advisorshares.com/ to learn more about us.
About WCM Investment Management
WCM Investment Management is committed to helping clients achieve their financial goals by utilizing a variety of disciplined techniques for security selection and portfolio construction. Since 1976 our team of investment professionals has met client objectives with innovative and thoughtful investment management.
As of 07/15/2010, WCM Investment Management has approximately $1 billion in assets under management. Visit their website at http://www.wcminvest.com/.
About BNY Mellon Depositary Receipts
BNY Mellon acts as depositary for more than 2,100 American and global depositary receipt programs, acting in partnership with leading companies from 67 countries. With an unrivaled commitment to helping securities issuers succeed in the world’s rapidly evolving financial markets, the company delivers the industry’s most comprehensive suite of integrated depositary receipt, corporate trust and stock transfer services. Learn more at www.bnymellon.com/dr.
Before investing you should carefully consider the Funds’ investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Funds’ website at http://www.advisorshares.com/. Please read the prospectus carefully before you invest.
An investment in the AADR ETF is subject to risks, which include concentration risk, foreign securities and currency risk, emerging markets risk, large-cap risk, early closing risk, counterparty risk and trading risk, which can increase Fund expenses and may decrease Fund performance. The Fund is, also, subject to the same risks associated with the underlying ETFs, which can result in higher volatility.
An investment in ETFs is subject to risk, including the possible loss of principal amount invested. The risks associated with each Fund include the risks associated with the underlying ETFs, which can result in higher volatility, and are detailed in each Fund’s prospectus and on each Fund’s webpage. Newly organized, actively managed Funds have no trading history and there can be no assurance that active trading markets will be developed or maintained. The Funds may not be suitable for all investors.
BNY Mellon Classic ADR Index combines the over the counter (OTC) traded ADRs with exchange-listed ADRs bringing transparency to the available universe of American Depositary Receipts, including those issued by many of the world’s premier companies. They are capitalization-weighted and adjusted for free-float utilizing Dow Jones’ current methodology. The MSCI EAFE Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. One cannot invest directly in an index.
Foreside Fund Services, LLC is the distributor of the AdvisorShares ETFs.