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(AADR) WCM/BNY Mellon Focused Growth ADR ETF

Overview

How AADR Works

The investment objective of the WCM/BNY Mellon Focused Growth ADR ETF (NYSE Arca: AADR) is long-term capital appreciation above international benchmarks such as the MSCI EAFE Index and the BNY Mellon Classic ADR Index. AADR provides a high-quality, large-cap growth portfolio for the non-U.S. universe. The portfolio is purposely very different from international benchmarks and other international funds. AADR achieves this differentiation by concentration (20–30 holdings) and a focus on traditional growth sectors such as technology, healthcare and consumer staples/discretionary. The AADR portfolio management team seeks to invest in businesses that have benefited from long-lasting global trends (tailwinds), a growing competitive advantage (a widening economic moat) and a superior corporate culture (great people). Finally, AADR recognizes the role valuation plays in investment returns and therefore seeks to pay a reasonable price for companies.

Fund Documents

Financial Professional Documents

Portfolio Manager Commentaries

Portfolio Manager's Video

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AADR in the News

The following reprints should not be construed as an offer to sell or a solicitation of an offer to buy shares of any other funds. They are provided for informational purposes for AdvisorShares only.
06/26/2014 -

AdvisorShares Press Release, AdvisorShares Announces June 2014 Distributions

03/28/2014 -

AdvisorShares Press Release, AdvisorShares Announces March 2014 Distributions

12/31/2013 -

AdvisorShares Press Release, AdvisorShares Announces December 2013 Distributions

11/25/2013 -

AdvisorShares Press Release, Alpha is Difficult to Achieve but Not Hard to Find

Performance -Month-End

AADR Performance History (%) as of 07/31/2014
 NAVMarket Price ReturnMSCI EAFE IndexBNY Mellon Classic ADR Index
1 Month-2.64-2.52-1.97-1.94
3 Months0.781.040.591.17
YTD 1.281.162.722.43
1 Year 13.3512.7915.0714.34
2 Years 15.42 15.6219.2017.26
3 Years 7.92 8.027.966.33
4 Years11.3411.3710.198.70
Since Inception
(7/20/2010, Annualized)
11.48 11.4911.269.63

Performance -Quarter-End

AADR Performance History (%) as of 06/30/2014
 NAVMarket Price ReturnMSCI EAFE IndexBNY Mellon Classic ADR Index
1 Month 2.32 2.300.961.41
3 Months 3.052.834.094.49
YTD 4.033.784.784.45
1 Year 19.85 19.8523.5722.47
2 Years 17.04 17.0421.0718.71
3 Years 8.04 7.878.106.25
Since Inception
(7/20/2010, Annualized)
12.50 12.4812.0710.39

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized.

The MSCI EAFE Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. One cannot invest directly in an index.

The BNY Mellon Classic ADR Index combines the over the counter (OTC) traded ADRs with exchange-listed ADRs bringing transparency to the available universe of American Depositary Receipts, including those issued by many of the world's premier companies. One cannot invest directly in an index.

Fund Distributions

Ex-DateRecord DatePay DateCash DivST Cap GainLT Cap GainReturn of CapitalTotal Distribution
09-24-14
09-26-14
09-30-14
-----
06-24-14
06-26-14
06-30-14
$0.115$0.00$0.00$0.00$0.115/per share
03-25-14
03-27-14
03-31-14
$0.036$0.00$0.00$0.00$0.036/per share
12-24-13
12-27-13
12-31-13
$0.009$0.00$0.00$0.00$0.009/per share
09-24-13
09-26-13
09-30-13
$0.014$0.00$0.00$0.00$0.014/per share
06-24-13
06-26-13
06-28-13
$0.102$0.00$0.00$0.00$0.102/per share
03-22-13
03-26-13
03-28-13
$0.003$0.00$0.00$0.00$0.003/per share
12-24-12
12-27-12
12-31-12
$0.056$0.00$0.00$0.00$0.056/per share
09-24-12
09-26-12
09-28-12
$0.008$0.00$0.00$0.00$0.008/per share
06-25-12
06-27-12
06-29-12
$0.039$0.00$0.00$0.00$0.039/per share
03-26-12
03-28-12
03-30-12
$0.00$0.00$0.00$0.00$0.00/per share
12-23-11
12-28-11
12-30-11
$0.073$0.122$0.00$0.00$0.195/per share
09-26-11
09-28-11
09-30-11
$0.00$0.00$0.00$0.00$0.00/per share
06-24-11
06-28-11
06-30-11
$0.02$0.00$0.00$0.00$0.02/per share
03-25-11
03-29-11
03-31-11
$0.00$0.00$0.00$0.00$0.00/per share
12-23-10
12-28-10
12-31-10
$0.07$0.00$0.00$0.00$0.07/per share
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Why Invest in AADR

  • As a complement to the MSCI EAFE - Approximately half of the MSCI EAFE Index is concentrated in basic materials, financials, energy and utilities—a definite “value” bias. Moreover, it excludes Canada and emerging markets, focused instead solely on European, Australasian and Far Eastern mid- and large-cap stocks. AADR is significantly different, growth oriented and thus complementary.
  • For Portfolio Diversification - Spreading your investment risk among foreign companies, markets, and currencies that are different than the U.S. economy can help diversify and mitigate your overall portfolio risk.
  • For Sound Portfolio Construction - In addition to its focus on high-quality growth companies, AADR’s Portfolio Management Team utilizes the following risk reviews to limit unnecessary risk and maximize downside protection: exposure to at least 15 industries, maximum position size of 10%, maximum sector size of 45%, maximum emerging markets exposure of 35%, and a well-defined sell discipline based on a host of qualitative factors and material geopolitical or currency risk.

5 Key Attributes

  1. Concentration - AADR has a portfolio of 20–30 high-quality growth companies which represents the best ideas generated by the portfolio management team.
  2. Quality Emphasis - AADR defines quality growth as businesses with superior growth histories, strong business prospects, historically high returns on capital, and low (or no) debt. These companies tend to be large, established multinationals.
  3. Differentiation - AADR generally passes on businesses in leveraged, slower-growing sectors such as energy, basic materials, utilities or financials, which dominate the international indices. Instead, the focus is on traditional growth sectors like technology, consumer discretionary / staples and healthcare. Similarly, they’ll tend to pass on slower-growing countries such as Japan, a dominant geographical component of widely used benchmarks.
  4. Research - AADR is driven by a unique research process that employs a traditional fundamental equity analysis, a global sector analysis as well as a network of some 500,000 industry experts worldwide. This includes industry executives, customers, vendors and past employees.
  5. Turnover - AADR targets 15% annual turnover, with a 3-5 year nominal holding period.

About American Depositary Receipts

An American Depositary Receipt (ADR) is a negotiable U.S. security that generally represents a company’s publicly traded equity or debt. Depositary Receipts are created when a broker purchases a non-U.S. company’s shares on its home stock market and delivers the shares to the depositary’s local custodian bank, and then instructs the depositary bank such as BNY Mellon, to issue Depositary Receipts.

About the Portfolio Managers

Paul R. Black, Portfolio Manager
Paul’s 27-year career in the investment business includes positions as portfolio manager with Wells Fargo Private Banking Group and Bank of America. Paul also sets the firm’s direction and acts as a client liaison for communication of investment decisions and strategy. Paul holds a B.S. in Finance from California State University, San Diego. He is currently a member of both the CFA Institute and the CFA Society of Orange County.

Kurt R. Winrich CFA, Portfolio Manager
Kurt has over 26 years of experience in the investment business. He graduated from Stanford University with an M.S. and B.S. in Electrical Engineering. Prior to joining WCM Kurt was the head of computer-aided design and analysis at Hughes Electronics Santa Barbara Research Center. He is a CFA Charterholder and is a member of both the CFA Institute and the CFA Society of Orange County.

Peter J. Hunkel, JD, CIMA®, Portfolio Manager & Business Analyst
Peter’s 12-year career in the investment business includes positions as Chief Operating Officer and Senior Portfolio Manager for Centurion Alliance and as a Portfolio Analyst for the Templeton Private Client Group. Peter earned a Juris Doctorate (J.D.) from Monterey College of Law. He is a Certified Investment Management Analyst (CIMA) and a member of IMCA.

Michael B. Trigg, Portfolio Manager & Business Analyst
Prior to joining WCM, Mike worked at Morningstar, Inc. in Chicago, IL, where he managed their model Growth Portfolio and covered a variety of companies in the technology industry. He earned his B.S. degree in Finance with honors from Saint Louis University.

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Fund Basics

  • Symbol

    AADR

  • Exchange

    NYSE Arca

  • Inception Date

    07/20/2010

  • CUSIP

    00768Y206

  • Indicative Value

    AADR.IV

  • Options

    No

Manager Minutes, Q3 2014

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Price History

As of: 08/28/2014
NAV$38.65Closing Price$38.72
Change$-0.12Change$-0.03
Shares Outstanding325,000Volume383
4PM Bid/Offer Midpoint$38.72Premium/Discount$0.07
Assets Under Management$12,562,208.05
Premium/Discount Historical Data

 

Top Holdings

As of: 08/28/2014
Ticker Name Weight
TSM TAIWAN SEMICONDUCTOR-SP ADR 5.49%
CP CANADIAN PACIFIC RAILWAY LTD 5.46%
CNI CANADIAN NATL RAILWAY CO 4.95%
NVO NOVO-NORDISK A/S-SPONS ADR 4.88%
LAZ LAZARD LTD-CL A 4.65%
ACE ACE LTD 4.36%
ASML ASML HOLDING NV-NY REG SHS 4.07%

Shares are bought and sold at market price (closing price) not NAV and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined), and do not represent the return you would receive if you traded at other times. Holdings and allocations are subject to risks and to change. A holding identified with an "MM" at the end of its name indicates it is a Money Market fund.

Fees & Expenses

  • Management Fee

    0.75%

  • Other Expenses

    1.77%

  • Acquired Fund Fees

    0.01%

  • Gross Expense Ratio

    2.53%

  • Fee Waiver and/or Expense Reimbursement

    1.27%

  • Net Expense Ratio

    1.26%*

  • *The Advisor has contractually agreed to keep net expenses from exceeding 1.25% of the Fund’s average daily net assets for at least a year from the date of the Prospectus and for an indefinite period thereafter subject to annual reapproval of the agreement by the Board of Trustees.