Data & Research August 30, 2012

Arnerich Massena Publishes Guide for ETPs

Arnerich Massena has published a white paper, “A Field Guide to Exchange-Traded Products.”
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Since exchange-traded funds (ETFs) leapt onto the scene in the early 1990s, their growing popularity has led to a proliferation of different types of products and at least six different exchange-traded structures, each of which can behave differently in given market conditions.    

“Investor interest in the various types of exchange-traded instruments continues to increase,” said Tony Arnerich, chief executive and chief investment officer of Arnerich Massena, “but tracking the different structures and anatomies of each ‘species’ can be confusing, and requires in-depth analysis.”   

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In the paper, Arnerich, Scott Dunbar and Jillian Perkins investigate the different ‘species’ of exchange-traded products: how they’re constructed, their risks, and how they fit into a diversified portfolio.    

The paper explores:  

 

  • Exchange-traded funds (ETFs);
  • Exchange-traded notes (ETNs);
  • Exchange-traded certificates (ETCs);
  • Limited partnership (LP) ETFs;
  • Master limited partnerships (MLPs) ETFs and ETNs; and 
  • Unit investment trusts (UITs). 

“A Field Guide to Exchange-Traded Products” can be downloaded here.

 

Products August 30, 2012

Scout Bond Fund to Compete With Money Funds

The Scout Low Duration Bond Fund aims to deliver more yield than a money market fund without the volatility of longer-term bond funds.

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The fund seeks to maximize risk-adjusted total return while minimizing volatility and preserving capital, Scout Investments said. It will diversify its holdings in high-quality, short-term securities with an average duration of one to three years. However, the manager may also invest in high yield at opportune times.

“The fund offers investors the potential for an attractive yield with relatively low credit risk, and provides a strategy to help preserve capital during periods of rising interest rates,” said Mark Egan, lead portfolio manager of the Scout Low Duration Bond Fund and managing director of Scout Investments subsidiary Reams Asset Management. “We believe the fund will allow investors to preserve past gains and earn a competitive rate of return while waiting for better opportunities in the future.”

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The fund rounds out three other fixed-income funds that Scout introduced last year, all managed by the Reams portfolio management team.

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