AdvisorShares Peritus High Yield ETF hits $1 billion AUM landmark

May 14th, 2014 | By | Category: Fixed Income

AdvisorShares, a leading sponsor of actively managed exchange-traded funds, has announced that the AdvisorShares Peritus High Yield ETF (HYLD) has crossed $1 billion in assets under management.

AdvisorShares Peritus High Yield ETF (HYLD) hits $1 billion AUM landmark

Tim Gramatovich, chief investment officer of Peritus Asset Management.

The fund, which debuted on the NYSE Arca in December 2010, is sub-advised by Peritus Asset Management, a California-based credit manager that specializes in fixed income opportunities in the non-investment grade corporate bond and loan market.

Peritus takes an active approach and concentrates only on high-yielding securities that they believe offer the best value while assessing the risk profile within a company’s entire capital structure. The fund’s aim is to deliver a high, tangible income with capital appreciation as a secondary goal.

The fund carries a 5-Star Morningstar Rating for both its 3-year and overall risk-adjusted performances, respectively, from inception through April 30, 2014 – out of six ETFs with at least a 3-year track record in the high-yield bond category. Morningstar compares each ETF’s risk-adjusted return, with at least a 3-year history, to the open-end mutual fund rating breakpoints for the high-yield bond category. Consistent with the open-end mutual fund ratings, HYLD earned its 5-star ranking as being in the top 10% of funds – that includes both ETFs and mutual funds – in the high-yield bond category.

Noah Hamman, chief executive officer of AdvisorShares, said that the fund’s success “is further testament that active management not only works in a fully-transparent ETF, but can work very well.”

Tim Gramatovich, chief investment officer of Peritus, added: “When it comes to leveraged finance assets, we firmly believe traditional indexing just doesn’t work well. HYLD’s performance proves how investors can benefit from active management.  Deep credit analysis is key to determine not only what to own but also what to avoid.”

Ron Heller, managing partner of Peritus, commented: “We’ve seen increased interest from financial advisors, pension plans and family offices in the high-yield market. Historically low interest rates continue to hurt yield investors, and we feel that the market has come to understand that high-yield bonds and leveraged loans are incredibly efficient in an active ETF structure. I’m tremendously proud of the team at Peritus and the great work they continue to do.”

The fund has a net expense ratio of 1.25%.

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