HANetf has announced the launch of the Regan Total Return Income Fund UCITS ETF (ticker: RMBS) with a TER of 0.75 per cent.
The firm writes that the ETF seeks to meet the demand for low duration, high quality fixed income and aims to outperform traditional cash instruments while maintaining high liquidity in an ETF structure.
Regan Capital is a US based investment firm registered with the SEC, managing approximately USD2.6 billion in assets under management. The new fund is an actively managed fund that invests primarily in floating and fixed rate Agency Residential Mortgage-Backed Securities (RMBS).
The firm writes that Agency RMBS typically offer higher yields than Treasury bonds without significant additional risk, since Agency RMBS are backed by U.S. government sponsored entities, such as Fannie Mae and Freddie Mac.
The Regan Total Return Income Fund UCITS ETF seeks to enhance the spread that Agency RMBS yields typically have over yields on Treasury bonds and corporate bonds through the alpha generated from its portfolio of actively managed Agency RMBS.
Regan has been exploring new methods of delivery for its products and how a wider range of clients can access its investment expertise.
“Regan Total Return Income Fund UCITS ETF gives non-U.S. investors access to the massive USD10 trillion Agency Residential Mortgage-Backed Securities market. With the ETF’s actively managed strategy, non-US investors can now access a high quality and US government-backed product at much cheaper valuations than traditional fixed income assets like Treasury bonds or corporate bonds,” says Skyler Weinand, chief investment officer and managing member of Regan Capital and portfolio manager of Regan Total Return Income Fund UCITS ETF.
HANetf writes that Regan Capital has been successful over several years providing access to a broader range of clients for a product that it feels is largely underserved. This new launch extends the product offering to European customers and marks Regan’s first entry to the European market, HANetf writes.
Hector McNeil, Co-Founder and Co-CEO of HANetf, says: “We are delighted to be partnering with Regan Capital to launch the Regan Total Return Income Fund UCITS ETF (ticker: RMBS). Regan’s approach to investing in US government backed residential mortgage-backed securities (RMBS) presents an opportunity for European investors to access low duration, high quality fixed income through the UCITS ETF wrapper.
“HANetf prides itself on partnering with asset managers from around the world to launch exciting new products for European investors, in a cost- and time-efficient manner.
“We now have 13 active ETFs on the HANetf platform, and there are more in the pipeline. It’s been difficult to miss the explosive growth of active ETFs in the US, but it feels like Europe is only now getting started. So far year-to-date, assets in European active ETFs have grown by almost 28 per cent, and total assets are now above USD65 billion. At HANetf, we are always looking to innovate, and we expect to have the broadest range of active ETFs in Europe by the end of 2025 – ranging from active equity, to fixed income, to options based, and thematic.”
