First Trust Advisors has launched a new actively managed ETF, the First Trust TCW Unconstrained Plus Bond ETF (UCON) which is sub-advised and managed by TCW Investment Management Company (TCW).
The fund’s managers look for value across a range of global fixed income market segments seeking to maximise long-term total return.
The fund is managed in an “unconstrained” manner, meaning that its investment universe is not limited to the securities of any particular index and TCW may invest in fixed income securities of any type or credit quality. Unlike index-based strategies, unconstrained strategies provide a flexible, adaptable, go anywhere approach. TCW’s fixed income management philosophy applies a long-term value discipline emphasising fundamental bottom-up research, which seeks to identify securities that are undervalued and offer a superior risk/return profile.
“We are very pleased to expand our relationship with First Trust in launching the First Trust TCW Unconstrained Plus Bond ETF,” says Stephen Kane, CFA, Group Managing Director and Portfolio Manager at TCW. “Our portfolio management team takes a full-cycle, value approach to managing fixed income. With a high level of flexibility to manage the portfolio around duration, sector and quality exposures, we plan to focus the portfolio on our best research ideas, while seeking to protect investors in difficult markets as well as achieve attractive returns in environments where we see compelling valuations.”
“This actively-managed ETF provides another tool for investment advisors to build portfolios for their clients, leveraging the best thinking of the world-class team at TCW. As interest rate volatility has returned this year, we believe professional management for fixed income assets is more important than ever,” says Ryan Issakainen, CFA, Senior Vice President, ETF Strategist at First Trust.
In addition to Stephen Kane, the fund’s portfolio management team from TCW includes Tad Rivelle, Chief Investment Officer, Co-Director – Fixed Income, Portfolio Manager; Laird Landmann, Co-Director – Fixed Income, Portfolio Manager; and Bryan T. Whalen, CFA, Group Managing Director, Portfolio Manager. The portfolio managers are jointly responsible for the day-to-day management of the fund.