AdvisorShares Investments, a provider of actively managed exchange-traded funds, will launch an actively managed high yield bond ETF, the Peritus High Yield ETF, no later than 3 December 2010.
The fund is managed by Peritus I Asset Management, a California-based investment manager.
Peritus is a value focused, active credit manager capitalising on opportunities in the corporate bond market.
In addition, the ETF may use US treasuries in an effort to hedge against adverse market declines in periods of excessive exuberance as evidenced by compressed spreads and questionable underwriting standards.
Noah Hamman, chief executive and founder of AdvisorShares, says: "Peritus has an established track record managing high yield bonds. More importantly they have extensive high yield bond trading experience and the relationships to find the best opportunities. We believe that the high yield asset class is one which is best served through active management. We are very excited to be the first Firm to offer an actively managed high yield bond ETF to investors."
Tim Gramatovich, chief investment officer of Peritus, says: "We are very excited to launch HYLD with AdvisorShares as investors have begun to realise the benefits of yield in their portfolios. Delivering this via an ETF brings both transparency and liquidity to a much misunderstood asset class. Given the massive size of the marketplace, we believe that we have the tools to manage this portfolio through any and all environments and as such view HYLD as an active credit fund with all season tires. Our goal is to deliver a monthly income stream while also positioning the portfolio to generate capital gains by acquiring securities at a discount to par value."