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AdvisorShares cuts management fees of Global Echo ETF

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AdvisorShares, a sponsor of actively managed exchange-traded funds (ETFs), is lowering the total net expense ratio of the AdvisorShares Global Echo ETF (GIVE) to 0.99 per cent, capping shareholder costs from exceeding that amount.

The reduction includes decreasing the fund’s management fee to 0.80 per cent. As the actively managed GIVE increases its assets under management and becomes more operationally-efficient, the total expense ratio would align with the 0.80 per cent management fee.
 
GIVE is a multi-manager, multi-strategy ETF that invests in a diversified portfolio of global equities and fixed income securities with a sustainable and impact investing focus.
 
The second part of GIVE’s dual-impact investment mandate focuses on philanthropic giving. GIVE directly supports Philippe Cousteau’s GlobalECHO Foundation, a 501(c)3 philanthropic organisation that provides funding solutions focused on women and children, micro-enterprise and the environment.
 
GIVE’s sub-advisors – Reynders, McVeigh Capital Management and Community Capital Management – contribute 25 basis points of their management fee to support the GlobalECHO Foundation. AdvisorShares also contributes 15 basis points to support the foundation and additional charities that make an impact across communities.
 
“While reducing the expense ratio will increase our firm’s out of pocket costs to keep the ETF operational, we ultimately believe in GIVE’s long-term potential to continue both aligning shareholders’ values with their investment goals and to making an impact for communities abound,” says Noah Hamman, chief executive officer of AdvisorShares.
 
“GIVE sub-advisors Reynders, McVeigh Capital Management and Community Capital Management represent two firms with an institutional pedigree and a well-established history in managing sustainable and impact investment strategies for their clients. Their investment and allocation expertise combined with the philanthropic guidance and direction provided by Philippe Cousteau and the GlobalECHO Foundation truly make GIVE a unique, fully-transparent offering within our industry.”
 
Since GIVE’s inception on 23 May 2012 through to 30 November 2016, AdvisorShares has contributed USD116,788 to the GlobalECHO Foundation while making contributions to additional philanthropic endeavours exceeding USD120,000.
 
The GlobalECHO Foundation helped develop a sustainable energy system at a hospital in the Eastern Congo by funding the installation of on-site solar panels – for a facility dedicated to rebuilding the lives of women in a challenging part of the world. GIVE’s direct impact has also benefitted charities that support families with children battling cancer, multiple sclerosis research, rare cancer research and combatting childhood hunger.
 
Hamman adds: “When looking closer at GIVE, we believe its dual-impact investment mandate has delivered for shareholders while possessing an even greater potential to do well while doing good. Additionally, we have long-felt that GIVE remains better-suited for Morningstar’s World Allocation category – and when viewed within that scope, we believe the ETF’s risk-adjusted performance shows quite favourably. We welcome financial advisors and investors who are evaluating an impact investment allocation to conduct their due diligence on GIVE – and discover what we feel represents a quite-compelling actively managed ETF offering.” 

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