SS&C Technologies Holdings Inc has announced that SS&C ALPS Advisors, an asset manager and wholly-owned subsidiary of SS&C, has launched the ALPS Intermediate Municipal Bond ETF (MNBD).
MNBD, which is sub-advised by Brown Brothers Harriman & Co, employs an active, bottom-up investment approach to protect investors’ capital and generate attractive risk-adjusted returns.
“SS&C ALPS Advisors continues to deliver a robust suite of active ETF strategies for allocators and investors,” says Laton Spahr, President of SS&C ALPS Advisors. “Our partner, BBH, is one of the most experienced managers in the marketplace with decades of experience actively managing municipal bonds. Their unique approach to identifying undervalued municipal securities and building diversified portfolios provides investors with tax-free income, the potential for capital appreciation, and disciplined risk management.”
The fund invests in a differentiated portfolio of investment-grade municipal bonds, balancing BBH’s conviction with prudent diversification. BBH’s bottom-up investment approach seeks to provide peace of mind and supplement tax-free yields with opportunities to earn excess returns. BBH utilises independent research and a proprietary quantitative framework to assess each security’s valuation, credit, and long-term return potential in the fund. Portfolio exposures are built one bond at a time by daily adherence to these criteria.
“The vast diversity of the municipal bond market provides attractive opportunities for active management. However, the pronounced household ownership of municipals creates inefficiencies you don’t find in the other major bond market sectors”, says Gregory Steier, Managing Director, Brown Brothers Harriman & Co. “We invest 100 per cent bottom-up and seek to build a differentiated portfolio by owning a limited number of durable credits that may provide attractive yields”.