Top
Arrow

(FLRT) Pacific Asset Enhanced Floating Rate ETF

Overview

How FLRT Works

The AdvisorShares Pacific Asset Enhanced Floating Rate ETF (NYSE Arca: FLRT) seeks to provide a high level of current income. FLRT is managed by Pacific Asset Management (“Portfolio Manager”). The Portfolio Manager seeks to achieve FLRT’s investment objective by selecting a focused portfolio comprised primarily of income producing floating rate loans and floating rate debt securities (commonly referred to as bank loans, leveraged loans or floating rate loans), which consist of senior secured and unsecured floating rate loans, secured second lien floating rate loans, and other floating rate debt securities of domestic and foreign issuers.

Fund Documents

Portfolio Manager Commentaries

FLRT Fund Statistics & Asset Allocation

as of 07/31/2016
  FLRT
30-Day SEC Subsidized Yield 3.41%
30-Day SEC Unsubsidized Yield 3.15%

Past Performance is not indicative of future results. 30–Day SEC Yield (Standardized Yield) is an annualized yield that is calculated by dividing the investment income earned by the Fund less expenses over the most recent 30-day period by the current maximum offering price. The Subsidized Yield reflects fee waivers and/or expense reimbursements recorded by the Fund during the period. Without waivers and/or reimbursements, yields would be reduced. The Unsubsidized Yield does not adjust for any fee waivers and/ or expense reimbursements in effect. If the Fund does not incur any fee waivers and/or expense reimbursements during the period, the 30-Day Subsidized Yield and 30-Day Unsubsidized Yield will be identical.

FLRT Asset Allocation (as of 06/30/2016)

FLRT 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.

Performance -Month-End

FLRT Performance History (%) as of 07/31/2016
 NAVMarket Price ReturnS&P/LSTA U.S. Leveraged Loan 100 Index
1 Month1.511.551.64
3 Months1.851.142.10
YTD5.935.257.09
1 Year3.071.912.71
Since Inception
(02/18/2015)
2.551.901.88
>

Performance -Quarter-End

FLRT Performance History (%) as of 06/30/2016
 NAVMarket Price ReturnS&P/LSTA U.S. Leveraged Loan 100 Index
1 Month-0.32-1.05-0.15
3 Months2.011.242.80
YTD4.363.645.36
1 Year1.690.460.69
Since Inception
(02/18/2015)
1.580.870.79

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 S&P/LSTA U.S. Leveraged Loan 100 Index is designed to track the market-weighted performance of the largest institutional leveraged loans based on market weightings, spreads and interest payments. One cannot invest directly in an index.

Fund Distributions

Ex-DateRecord DatePay DateCash DivST Cap GainLT Cap GainReturn of CapitalTotal Distribution
08-25-16
08-29-16
08-31-16
-----
07-25-16
07-27-16
07-29-16
$0.1496$0.00$0.00$0.00$0.1496/per share
06-24-16
06-28-16
06-30-16
$0.1464$0.00$0.00$0.00$0.1464/per share
05-24-16
05-26-16
05-31-16
$0.1360$0.00$0.00$0.00$0.1360/per share
04-25-16
04-27-16
04-29-16
$0.1335$0.00$0.00$0.00$0.1335/per share
03-24-16
03-29-16
03-31-16
$0.1311$0.00$0.00$0.00$0.1311/per share
02-23-16
02-25-16
02-29-16
$0.1319$0.00$0.00$0.00$0.1319/per share
01-25-16
01-27-16
01-29-16
$0.1042$0.00$0.00$0.00$0.1042/per share
12-24-15
12-29-15
12-31-15
$0.1867$0.00$0.00$0.00$0.1867/per share
11-23-15
11-25-15
11-30-15
$0.1343$0.00$0.00$0.00$0.1343/per share
10-26-15
10-28-15
10-30-15
$0.1565$0.00$0.00$0.00$0.1565/per share
09-24-15
09-28-15
09-30-15
$0.1623$0.00$0.00$0.00$0.1623/per share
08-25-15
08-27-15
08-31-15
$0.1542$0.00$0.00$0.00$0.1542/per share
07-24-15
07-28-15
07-30-15
$0.1469$0.00$0.00$0.00$0.1469/per share
06-24-15
06-26-15
06-30-15
$0.1999$0.00$0.00$0.00$0.1999/per share
05-22-15
05-27-15
05-29-15
$0.1720$0.00$0.00$0.00$0.1720/per share
04-24-15
04-28-15
04-30-15
$0.1464$0.00$0.00$0.00$0.1464/per share
03-25-15
03-27-15
03-31-15
$0.0574$0.00$0.00$0.00$0.0574/per share
Bottom
Top

Why Invest in FLRT?

  • For a Dedicated Yield Focus - Unlike its peers, FLRT offers a dedicated floating rate portfolio focused on yield, approached with a focus on the larger, rated issuers within the loan universe. The Portfolio Manager believes that this process provides a margin of safety and downside risk protection relative to the smaller, non-rated companies.
  • For Opportunistic Leverage - In a bid to enhance potential yield and total return, FLRT has the flexibility to invest 80 -130% of its assets based on the Portfolio Manager’s analysis of market conditions.
  • For a Disciplined Investment Process - The Portfolio Manager believes that a disciplined portfolio decision-making process that focuses on credit fundamentals for individual security selection will lead to outstanding long-term performance versus FLRT’s peers and its benchmark. They further believe that the focus should be on the fundamentals of the businesses in which FLRT invests.

Where can FLRT Fit in a Traditional Portfolio?

FLRT may serve as a yield enhancing, complement to core fixed income positions. Floating rate funds often offer yields that are competitive with the high yield segment but with the added opportunity of potential protection against rising rates.

This is possible due to the nature of the floating rate market which is that the interest rate is adjusted on a regular schedule to attract investor demand. If interest rates in the broad market head higher then the interest rates charged to the borrower will be adjusted higher as well with a modest time lag.

5 Key Attributes

  1. Floating Rate Strategy - FLRT offers investors a focused portfolio comprised of income producing floating rate loans and floating rate debt securities which aims to provide a high level of current income.
  2. Liquid - The Portfolio Manager’s active management approach favors names that make up the most liquid segment of the bank loan marketplace. This allows for more fluid entry and exit of positions as needed.
  3. Focus on Corporate Credit - The Portfolio Manager covers the entire credit spectrum ‘AAA’ to ‘C’, which gives them a unique perspective on relative value and may offer investors favorable risk/reward opportunities.
  4. Limited Asset Class Correlation - With unique structural characteristics, bank loans have limited correlations to most major asset classes, providing portfolio diversification across various fixed income and equity asset classes.
  5. Experienced Bank Loan Investment Team - The Portfolio Manager has focused on bank loans since the firm’s founding. FLRT’s investment professionals possess an average of 14 years of investment experience.

About the Portfolio Managers

Bob Boyd, Managing Director Pacific Asset Management
Bob serves as a Portfolio Manager and Credit Analyst for the firm. He joined Pacific Asset Management in 2012. Previously, Bob was with Pacific Investment Management (PIMCO) for 14 years, where he was a Vice President, Bank Loan Portfolio Manager, and Credit Analyst. Bob has over 17 years of investment experience focused on leveraged finance, credit analysis, and structured products. He holds a bachelor’s degree from California State University, Long Beach and an MBA from the University of Southern California.

Michael Marzouk, CFA, Portfolio Manager and ETF Investment Committee Member
Mr. Marzouk is a Managing Director for the Sub-Advisor and a member of the Sub-Advisor’s ETF Investment Committee. Mr. Marzouk serves as a Portfolio Manager and Credit Analyst for the firm. He joined the Sub-Advisor in 2007. Mr. Marzouk has over 17 years of investment experience focused on leveraged finance and credit research. Mr. Marzouk has a bachelor’s degree from the University of California, Los Angeles and an MBA from the Anderson School of Management.

Bottom

Manager Minutes, June 2016

This audio is for financial professionals only. Please login or register for access.

Price History

As of: 08/23/2016
NAV$49.37Closing Price$49.36
Change$0.02Change
Shares Outstanding550,000Volume
4PM Bid/Offer Midpoint$50.44Premium/Discount$1.07
Assets Under Management$27,153,904.33
Premium/Discount Historical Data

Holdings

As of: 08/23/2016
Name Price Weight
RECV IBOX USD LLI 03/17 101.7 11.24%
CHESAPEAKE E 08/15/21 TERM LOAN 101.938 1.88%
SRS Distribution 08/25/22 Term Loan 101.313 1.87%
PETCO ANIMAL SUPPLIES 01/26/23 Term Loan 100.916 1.86%
NEXEO SOLUTIONS LLC 06/09/23 Term Loan 100.458 1.85%
BOYD GAMING TLB L+300 08/16 08/16/23 Term Loan 100.438 1.85%
UBER TECHNOLIGIES 07/13/23 Term Loan 100.282 1.85%
DTZ U.S. BORROWER 11/04/21 Term Loan 99.5805 1.83%
US FOODS TLB L+325 06/30/2023 TERM LOAN 100.593 1.83%
SERVICEMASTER 6/14 COV 07/01/21 TERM LOAN 100.741 1.83%

 

Cash & Cash Equivalents

As of: 08/23/2016
TickerNameWeight
---CASH-5.22%

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.

Fund Basics

  • Symbol

    FLRT

  • Exchange

    NYSE Arca

  • Inception Date

    02.18.2015

  • CUSIP

    00768Y594

  • Indicative Value

    FLRT.IV

  • Options

    No

Fees & Expenses

  • Management Fee

    0.95%

  • Other Expenses

    0.46%

  • Acquired Fund Fees

    0.02%

  • Gross Expense Ratio

    1.43%

  • Fee Waiver and/or Expense Reimbursement

    -0.31%

  • Net Expense Ratio

    1.12%*

  • *The Advisor has contractually agreed to keep net expenses from exceeding 1.10% of the Fund’s daily net assets for at least one year from the date of the prospectus and for successive one-year periods thereafter unless the agreement is terminated. This agreement is limited to the Fund’s direct operating expenses and, therefore, does not apply to “Acquired Fund Fees and Expenses.”