02/01/2012 -
AdvisorShares Press Release, AdvisorShares Announces January 2012 Distributions
(FWDB) Madrona Global Bond ETF
Overview
How FWDB Works
The investment objective of the AdvisorShares Madrona Global Bond ETF (FWDB) seeks investment results that exceed the price and yield performance of its benchmark, the Barclays Capital Aggregate Bond Index. FWDB is sub-advised by Madrona Funds, LLC (Portfolio Manager). The Portfolio Manager seeks to achieve this objective by selecting a diversified portfolio of fixed income exchange-traded products (ETPs), including but not limited to, exchange-traded notes (ETNs), exchange-traded currency trusts and exchange-traded commodity pools. FWDB invests in at least 12 distinct global bond classes that cover the entire global investable bond universe. The Portfolio Manager constructs FWDB’s portfolio using a weighted allocation system based on historic yield curve analysis and a mean reversion strategy.Fund Documents
FWDB Portfolio Statistics & Bond Sector Allocation
as of 1/31/2012
| FWDB | ||
|---|---|---|
| Avg Weighted Coupon | 5.15% | |
| Avg Yield to Maturity | 3.84% | |
| Avg Duration | 5.69 years | |
| 30-Day SEC Yield | 3.18% |
Past Performance is not indicative of future results. FWDB statistics and bond sector allocation are for the actual FWDB security holdings as of the listed date, excluding cash. Average Weighted Coupon is the average interest rate paid on the bonds held in the portfolio, calculated by weighting each bond's coupon by its relative size in the portfolio. Average Yield to Maturity is the market-weighted yield of the holdings in the portfolio, if held until the maturity date. Average Duration is a way of estimating the sensitivity of the value of a bond portfolio to changes in interest rates. Average duration for a portfolio is calculated as the average of the durations of the bonds in the portfolio, weighted according to the price of each bond. 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.
FWDB in the News
01/24/2012 -
Johnston, Michael. "International Bond ETF Guide: All the Options For Ex-U.S. Fixed Income Exposure" etfdb.com.
01/21/2012 - Coleman, Murray. "More Clear Skies for Munis." http://online.barrons.com/article/SB50001424052748703879704577166854072190274.html
12/29/2011 -
AdvisorShares Press Release, AdvisorShares Announces December 2011 Distributions
12/29/2011 -
Dutram, Eric. "Ten Best New ETFs of 2011" zacks.com.
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Performance -Quarter-End
FWDB Performance History (%) as of 12/31/2011
| NAV | Market Price Return | Barclays Capital Aggregate Bond Index | |
|---|---|---|---|
| 1 Month | 1.87 | 1.70 | 1.10 |
| 3 Month | 2.57 | 2.20 | 1.12 |
| Since Inception (06/21/2011) | 2.30 | 2.18 | 4.45 |
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 Barclays Capital Aggregate Bond Index measures the performance of the U.S. investment grade bond market. One cannot invest directly in an index.
Performance -Month-End
FWDB Performance History (%) as of 01/31/2012
| NAV | Market Price Return | Barclays Capital Aggregate Bond Index | |
|---|---|---|---|
| 1 Month | 1.79 | 1.91 | 0.88 |
| 3 Month | 1.82 | 1.49 | 1.90 |
| YTD | 1.79 | 1.91 | 0.88 |
| Since Inception (06/21/2011) | 4.14 | 4.13 | 5.37 |
Fund Distributions
| Ex-Date | Record Date | Pay Date | Cash Div | ST Cap Gain | LT Cap Gain | Return of Capital | Total Distribution |
|---|---|---|---|---|---|---|---|
07-25-11 | 07-27-11 | 07-29-11 | $0.02 | $0.00 | $0.00 | $0.00 | $0.02/per share |
08-25-11 | 08-29-11 | 08-31-11 | $0.07 | $0.00 | $0.00 | $0.00 | $0.07/per share |
09-26-11 | 09-28-11 | 09-30-11 | $0.06 | $0.00 | $0.00 | $0.00 | $0.06/per share |
10-25-11 | 10-27-11 | 10-31-11 | $0.06 | $0.00 | $0.00 | $0.00 | $0.06/per share |
11-23-11 | 11-28-11 | 11-30-11 | $0.06 | $0.00 | $0.00 | $0.00 | $0.06/per share |
12-23-11 | 12-28-11 | 12-30-11 | $0.103 | $0.00 | $0.00 | $0.00 | $0.103/per share |
01-25-12 | 01-27-12 | 01-31-12 | $0.059 | $0.00 | $0.00 | $0.00 | $0.059/per share |
Why Invest in FWDB
- For Diversified Portfolio Construction - Spreading your investment risk among bonds in all the material global bond sectors, including bonds with different maturities and credit qualities and investing in thousands of individual bonds by using a fund of funds structure can help diversify an overall portfolio.
- For a Smarter Way to Buy Global Bonds - FWDB is designed for investors who want exposure to the global bond market and believe allocation weights should be contingent the current economic cycle as it relates to the forward looking yield curve. FWDB could constitute the core bond allocation for investors seeking diversification in bonds.
- For Simplification - FWDB is designed for any investor seeking one bond fund that includes all the major global bond sectors.
5 Key Attributes
- World-Wide Diversification - FWDB maintains at least a 3% exposure to over 12 distinct global bond classes at all times. Conversely, broad market bond funds typically limit themselves to the highest quality (and therefore lower yielding) bonds and offer limited exposure to other bond classes.
- Yield Curve and Mean Reversion - Unlike the typical bond market index fund which is comprised of the largest bonds in a class as measured by their size on the market, FWDB uses historical class by class yield-curve analysis and how the curve stands in relation to the current yield-curve of the particular bond class to add a forward-looking dimension to the Fund’s analysis.
- Simplifies Portfolio Construction - Most bond funds only offer one bond class, making it hard for investors to increase diversity. By including a material investment in all major global bond categories, FWDB offers a core bond investment strategy not currently available even when compared to “Total Bond Market Indices”.
- Low Turnover - FWDB will typically have low portfolio turnover. Changes to the Fund’s portfolio typically occur upon the reporting and analysis of each bond category’s risk assessment. Lower turnover may lead to a more tax efficient investment due to less buy/sell transaction costs.
- Reliance on Analyst Research - FWDB’s use of third party research consists of analyzing the historical class by class yield curve analysis and how the curve stands in relation to the current yield curve of the particular bond class. Based on this research, the Team determines which bond classes will receive higher and lower than average allocations as compared to typical bond indices.
About the Portfolio Managers
Brian K. Evans, CPA/PFS – Founder/Managing Member/Portfolio Manager
Mr. Evans founded Madrona Funds, LLC in September, 2010. He is primarily responsible for operational management as well as implementation and development of investment strategies for Madrona Funds, LLC. Brian is President and owner of Bauer Evans, Inc. P.S. (“Bauer Evans”), and has been a CPA for 24 years. Bauer Evans is one of the largest certified public accounting firms in Snohomish County, Washington serving over 1,200 clients. Brian is also Principal and owner of BondStreet Wealth Management, LLC (“BondStreet”). BondStreet is an independent registered investment advisor offering comprehensive global investment services. BondStreet was ranked by Financial Advisor Magazine as one of the top 25 fastest growing companies in its class in the country for 3 consecutive years, 2005-2007.
Robert W. Bauer, CPA – Member/Portfolio Manager
Mr. Bauer joined Madrona Funds, LLC at its inception in September, 2010. He is primarily responsible for the implementation and development of investment strategies for Madrona Funds, LLC. Bob attended the University of Washington and received a Bachelors of Arts Degree in Political Science, later attending Seattle University, Golden Gate University and the University of Washington for Masters courses in Business, Taxation, Special Education and Broadcast Journalism. After 13 years in the public accounting field, Bob started his own CPA firm, which later became Bauer Evans when Brian Evans joined him. Bob also holds his Series 65 license as an investment adviser representative for BondStreet.
Kristi R. Henderson, CPA/PFS – Member/Portfolio Manager
Mrs. Henderson joined Madrona Funds, LLC at its inception in September, 2010 and is a CPA for Bauer Evans. She is primarily responsible for the implementation and development of investment strategies for Madrona Funds, LLC. As an Academic All-American nominee for the University of Oregon softball team, Kristi graduated with honors in June, 2007 and received a degree in accounting while also taking numerous finance classes. She holds her Series 65 license as an investment advisor representative for BondStreet where she helped create securities trades, ran the performance software and performed various other duties.
Fund Basics
-
Symbol
FWDB
-
Exchange
NYSE
-
Inception Date
06/20/2011
-
CUSIP
00768Y834
-
Indicative Value
FWDB.IV
Price History
As of: 02/21/2012
| NAV | $25.66 | Closing Price | $25.60 |
| Change | $0.02 | Change | |
| Shares Outstanding | 625,000 | Volume | 355 |
| 4PM Bid/Offer Midpoint | $25.68 | Premium/Discount | $0.02 |
| Assets Under Management | $16,036,474.73 | ||
| Premium/Discount Historical Data | |||
Top 10 Holdings (Log in above to view all holdings)
As of: 02/21/2012
| Ticker | Name | Weight |
|---|---|---|
| LQD | ISHARES IBOXX INV GR CORP BD | 17.56% |
| HYG | ISHARES IBOXX $ HIGH YIELD COR | 13.46% |
| VMBS | VANGUARD MORTGAGE-BACKED SEC | 13.26% |
| PICB | POWERSHARES INT CORP BOND PT | 7.99% |
| VGIT | VANGUARD INTERM-TERM GOVT BD | 4.78% |
| IGOV | ISHARES S&P/CITI INT TRE BND | 4.65% |
| PGF | POWERSHARES FINANCIAL PREFERRED PORTFOLIO | 4.18% |
| PCY | POWERSHARES EMERGING MARKETS S | 4.06% |
| STPZ | PIMCO 1-5 YEAR US TIPS IN FD | 3.90% |
| BAB | POWERSHARES BUILD AMERICA PO | 3.87% |
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
0.50%
-
Other Expenses
0.47%
-
Acquired Fund Fees
0.20%
-
Gross Expense Ratio
1.17%
-
Fee Waiver and/or Expense Reimbursement
0.02%
-
Net Expense Ratio
1.15%*
- *The Advisor has contractually agreed to keep the Fund’s Total Annual Fund Operating Expenses from exceeding 0.95% until October 31, 2012. This agreement is limited to the Fund’s direct operating expenses and, therefore, does not apply to “Acquired Fund Fees and Expenses."