Bear Stearns Asset Management has announced plans to launch the Bear Stearns Current Yield Fund, the first actively managed exchange-traded fund to be authorised by the Securities and Exch
Bear Stearns Asset Management has announced plans to launch the Bear Stearns Current Yield Fund, the first actively managed exchange-traded fund to be authorised by the Securities and Exchange Commission, on March 18.
The fund, the first sub-fund to be launched as part of the Bear Stearns Active ETF Trust, is composed of a range of short-term fixed income instruments, with portfolio holdings fully disclosed each day (as required by the SEC) via Bear Stearns Asset Management’s web site.
The fund seeks to generate higher returns than an average money market fund by investing in diversified high-quality securities, including government bonds, municipal securities, bank obligations, corporate and securitised debt.
‘We are excited to be introducing the first actively managed ETF into the marketplace,’ says Jeff Lane, chairman and chief executive of Bear Stearns Asset Management. ‘The Bear Stearns Current Yield Fund is an innovative vehicle that allows investors to manage short-term fixed income.
‘Investors have access to a talented management team, with a long and successful track record in this space. In addition, the fund offers full transparency of holdings every day on the internet, liquidity via exchange trading, and institutional class fees for all investors.’
The Current Yield Fund is managed by a team of fixed income professionals at Bear Stearns Asset Management, led by senior portfolio manager Scott Pavlak, who has more than 20 years’ investment experience and has been managing portfolios similar to the fund for more than 15 years.
‘Using a disciplined investment process, we seek to add value through sector allocation, security selection, yield curve positioning and duration management,’ Pavlak says. ‘We use a conservative approach that aims to maximise income for our investors while preserving capital.’
Bear Stearns Asset Management, a wholly-owned subsidiary of Bear Stearns Companies, provides asset management and advisory services to institutional and high net worth investors worldwide through equity, fixed income, hedge fund and private equity strategies.