The AdvisorShares Pacific Asset Enhanced Floating Rate ETF (FLRT) is now trading on the NYSE ARca.
The FLRT portfolio is managed by Pacific Asset Management, an SEC registered investment adviser that specialises in institutional fixed income management, and features an investment professional team that carries multiple decades of experience managing floating rate loan portfolios.
In pursuing FLRT's investment objective, Pacific Asset Management seeks to provide a high level of current income through selective investments within a portfolio comprised primarily of income producing floating rate loans and floating rate debt securities of non-investment grade companies, which are commonly referred to as bank loans.
The FLRT portfolio seeks to invest in the most liquid segments of the bank loan marketplace, allowing for more fluid entry and exit of positions as needed. Additionally, the portfolio manager can discretionally employ modest leverage, aiming to enhance returns relative to its benchmark and other offerings in this space. Due to bank loans' unique characteristics, the FLRT portfolio may possess limited correlations to most major fixed income asset classes, potentially providing diversification to an overall investment portfolio.
"In what seems like a perpetually low interest rate environment, investors and financial advisors are constantly looking for pragmatic solutions to enhance their fixed income allocation," says Noah Hamman, chief executive officer of AdvisorShares. "Driven by Pacific Asset Management's deep expertise within fixed income management, we believe FLRT will dynamically allocate to individual floating rate offerings while providing a keen discernment towards risk that can allow attractive monthly income while providing diversification outside of traditional interest rate risk. Combined with the transparency, liquidity and overall efficiency of an ETF vehicle, we feel FLRT's investment strategy provides yet another compelling addition to AdvisorShares' actively managed ETF suite."
"As an organisation, we rely on our collective experience and close collaboration to identify the best fixed income opportunities for our investors when navigating the bank loan marketplace, emphasising attractive yield and favourable risk-return profiles. In doing so, we believe we have provided a real value-added service for our clients," says Jason Rosiak, senior managing director of Pacific Asset Management and co-portfolio manager of FLRT. "We believe FLRT's strategy will allow more flexibility to enhance returns by utilising our top-down perspective on loans, which is complemented by of our bottom-up fundamental selection process. We look forward to delivering this approach through a universally accessible actively managed ETF in collaboration with AdvisorShares."