Bear Stearns Asset Management has launched the Bear Stearns Current Yield Fund, the first actively managed exchange traded fund (ETF).
YYY, or Triple-Y, is composed of a variety of short-term fixed income instruments. The fund aims to generate higher returns than an average money market fund by investing in diversified, high-quality securities, including governments, municipal securities, bank obligations, corporate and securitised debt.
Triple-Y Shares can be purchased and sold intraday, with portfolio holdings fully disclosed each day via BSAM’s website www.yyyfund.com. Triple-Y is the first product launched by the Bear Stearns Active ETF Trust.
“We are excited to be introducing the first actively managed ETF into the marketplace. The Bear Stearns Current Yield Fund is an innovative vehicle which allows investors to manage short-term fixed income. Through Triple-Y, investors have access to a talented management team, with a long and successful track record in the fixed income market. In addition, the fund offers full transparency of holdings every day on the internet, liquidity via exchange trading and institutional class fees for all investors,” says Jeff Lane, chairman and CEO, Bear Stearns Asset Management.
Triple-Y is managed by a team of fixed income professionals at BSAM, led by senior portfolio manager Scott Pavlak. Pavlak has more than 20 years of investment experience and has been managing portfolios with a similar investment process to Triple-Y for over 15 years.
“Utilising a disciplined investment process, we seek to add value through sector allocation, security selection, yield curve positioning, and duration management. We use a conservative approach which aims to maximise income for our investors, while preserving capital,” says Pavlak.
TripleY will be available on the American Stock Exchange on 18 March 2008.