Fund.com’s majority-owned subsidiary AdvisorShares Investments has launched the industry’s first actively managed international exchange-traded fund, the WCM/BNY Mellon Focused Growth ADR ETF.
AADR is sub-advised by institutional money manager WCM Investment Management.
BNY Mellon is the world’s largest depositary for American depositary receipts 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.
"WCM Investment Management has experience with this strategy within other investment vehicles that 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," says Noah Hamman, chief executive 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-US 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 to 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, growing competitive advantages and a superior corporate culture.
Paul R. Black, WCM president and co-chief executive, says: "At WCM, our investment strategy is driven by timeless principles that we believe are poised to outperform extremely inefficient international benchmarks."