(Bloomberg) — Rockefeller Asset Administration is the most recent cash supervisor to capitalize on the muni ETF growth.
The New York-based division of Rockefeller Capital Administration is launching its first actively managed mounted earnings exchange-traded funds. The merchandise, which can be managed by a trio of portfolio managers who joined earlier this yr from Invesco Ltd., will concentrate on lower-rated bonds.
There at the moment are greater than 100 muni ETFs with a mixed $131 billion as asset managers vie to seize cash that’s been flowing into the low-cost and easy-to-trade merchandise. Goldman Sachs Asset Administration and PGIM have each launched new funds this yr.
Demand has been notably sturdy for high-yield muni bonds. The securities are outperforming even US company high-yield bonds thus far this yr, returning over 6%, in keeping with Bloomberg indexes.
“We imagine higher-yielding municipals signify a extremely compelling asset class,” stated Alex Petrone, director of mounted earnings at Rockefeller Asset Administration. She stated the securities have a low correlation with equities, which implies that they might present a buffer for buyers when there’s weak point within the inventory market.
Scott Cottier, Mark DeMitry, and Michael Camarella, who beforehand helped oversee high-yield muni funds at Invesco, will handle the funds.
The Rockefeller Opportunistic Municipal Bond ETF, which can commerce with the ticker RMOP, will usually make investments at the least 50% of its whole property in municipal bonds which have a credit standing of BBB+ or Baa1 or decrease.
The corporate can also be launching the Rockefeller California Municipal Bond ETF and the Rockefeller New York Municipal Bond ETF, which can put money into tax-exempt bonds in these states. These funds possible enchantment to buyers seeking to protect their earnings from excessive state taxes.
These two funds can make investments as much as 25% of their property in muni bonds which are beneath investment-grade.