ETF issuer AdvisorShares announced it would cut the management fees on its unique charity-focused fund known popularly by its ticker symbol, GIVE.
According its press release on the matter, AdvisorShares said it would “lower its total net expense ratio to 0.99%, capping shareholder costs from exceeding that amount. The reduction includes decreasing the fund’s management fee to 0.80%. As the actively managed GIVE increases its assets under management and becomes more operationally-efficient, the total expense ratio would align with the 0.80% management fee.”
If you aren’t familiar with the fund, GIVE is a very unique product that makes regular charitable contributions based on its asset levels. Fund literature states that GIVE’s sub-advisors “contribute 25 basis points of their management fee to support the GlobalECHO Foundation. AdvisorShares also contributes 15 basis points to support the Foundation and additional charities that make an impact across communities.”
The fund’s issuer commented on the change:
“While reducing the expense ratio will increase our firm’s out of pocket costs to keep the ETF operational, we ultimately believe in GIVE’s long-term potential to continue both aligning shareholders’ values with their investment goals and to making an impact for communities abound,” said Noah Hamman, chief executive officer of AdvisorShares. “GIVE sub-advisors Reynders, McVeigh Capital Management and Community Capital Management represent two firms with an institutional pedigree and a well-established history in managing sustainable and impact investment strategies for their clients. Their investment and allocation expertise combined with the philanthropic guidance and direction provided by Philippe Cousteau and the GlobalECHO Foundation truly make GIVE a unique, fully-transparent offering within our industry.”
The AdvisorShares Global Echo ETF (NYSE:GIVE) was unchanged in premarket trading Thursday. Year-to-date, GIVE has gained 1.97%, versus a 2.70% rise in the benchmark S&P 500 index during the same period.