Actively-managed exchange-traded fund sponsor AdvisorShares is to launch the AdvisorShares Sage Core Reserves ETF (HOLD) on 15 January.
HOLD is sub-advised by Sage Advisory Services, an Austin, Texas-based asset manager, with experience in fixed income portfolio management and ETF strategies.
The investment objective of HOLD is to preserve capital while maximising income. Sage seeks to achieve this objective by investing in a broad range of fixed-income securities and US dollar denominated investment grade debt securities, with an average duration of less than one year.
Sage's fixed income investment process applies a balanced, top-down approach focused on actively managing portfolio duration risk, yield curve positioning, market segment allocation and security selection. Sage seeks to make the ultra-low duration portfolio less sensitive to interest rate changes, and provide the ability to be flexible across credit quality and security selection, while minimising volatility and maintaining a high level of liquidity.
"The threat of rising interest rates and a strong investor appetite for yield may present limited options for efficient ways to access and manage cash holdings," says Noah Hamman (pictured), chief executive officer of AdvisorShares. "We believe HOLD delivers a compelling investment solution with the benefits of a liquid, transparent and efficient actively managed ETF by leveraging Sage's well-established track record and expertise as a fixed income manager."
"We believe our unique top-down portfolio management approach, which focuses across a diverse range of fixed income securities, is well-positioned to manage risk and duration in any market or interest rate environment," says Robert G. Smith, president and chief investment officer of Sage. "As a result, we believe our partnership with AdvisorShares can present HOLD shareholders a core portfolio component to help realise their investment goals."