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(FWDI) Madrona International ETF

Overview

How FWDI Works

The investment objective of the AdvisorShares Madrona International ETF (NYSE Arca: FWDI) seeks to provide long-term capital appreciation above the capital appreciation of its international benchmarks, such as the MSCI EAFE Index, the Fund’s primary benchmark, and the BNY Mellon Classic ADR Index, the Fund’s secondary benchmark. FWDI is sub-advised by Madrona Funds, LLC ("Portfolio Manager"). The Portfolio Manager seeks to achieve this objective by selecting a portfolio primarily composed of at least 250 of the largest American Depositary Receipts (ADRs) from among the largest issuers of Europe, Australasia and the Far East (EAFE) and Canada. FWDI’s portfolio may also include ADRs that provide exposure to certain markets deemed to be emerging markets.

Fund Documents

Portfolio Manager Commentaries

FWDI 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.
12/31/2013 -

AdvisorShares Press Release, AdvisorShares Announces December 2013 Distributions

12/28/2012 -

AdvisorShares Press Release, AdvisorShares Announces December 2012 Distributions

12/13/2012 - "Tomorrow in 30: Energy Prices & Fiscal Cliff." http://video.cnbc.com/gallery/?video=3000135287&play=1
10/17/2012 - "Tomorrow in 30: China GDP, Earnings & EU Summit." http://video.cnbc.com/gallery/?video=3000122698&play=1

Performance -Month-End

FWDI Performance History (%) as of 10/31/2014
 NAVMarket Price ReturnMSCI EAFE IndexBNY Mellon Classic ADR Index
1 Month-1.82-1.79-1.45-0.19
3 Months-6.02-6.34-5.39-3.96
YTD-3.27-3.13-2.81-1.63
1 Year0.580.41-0.600.50
2 Years11.8712.2912.3011.16
3 Years9.159.079.689.01
Since Inception
(06/20/2011, Annualized)
3.953.936.135.00

Performance -Quarter-End

FWDI Performance History (%) as of 09/30/2014
 NAVMarket Price ReturnMSCI EAFE IndexBNY Mellon Classic ADR Index
1 Month-6.19-6.17-3.84-4.55
3 Months-5.56-5.34-5.88-5.64
YTD-1.48-1.37-1.38-1.44
1 Year5.214.374.254.15
2 Years13.4513.4913.6011.80
3 Years14.3514.3413.6513.05
Since Inception
(06/20/2011, Annualized)
4.644.616.775.19

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
12-24-14
12-29-14
12-31-14
-----
12-24-13
12-27-13
12-31-13
$0.490$0.00$0.00$0.00$0.490/per share
12-24-12
12-27-12
12-31-12
$0.296$0.00$0.00$0.00$0.296/per share
12-23-11
12-28-11
12-30-11
$0.080$0.024$0.00$0.00$0.104/per share
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Why Invest in FWDI

  • As an Alternative to International Index Allocations - FWDI can be used as an alternative to market cap indices, such as the MSCI EAFE Index and the BNY Mellon Classic ADR Index. FWDI is a valuation-based broadly diversified international allocation and will provide as diversified a portfolio as the aforementioned index strategies, just weighted based on the present value of future expected earnings.
  • For Diversified Portfolio Construction - The Portfolio Manager’s portfolio construction process emphasizes diversification across up to at least 250 of the largest securities traded as ADRs in developed and emerging international countries. Spreading your investment risk among EAFE, Canadian and Emerging Market companies with a material allocation to all quartiles may help diversify an overall portfolio.
  • For a Smarter Way to Buy Global Equities - FWDI is designed for any investor who believes that global equities should be represented in their portfolio and wants to buy them in a smarter way- based on future expected earnings, not past performance. For a world allocation portfolio, FWDI could constitute the core foreign equity allocation.

5 Key Attributes

  1. Forward-Looking Fundamental Analysis - Unlike the typical market cap weighted index fund, which is comprised of the largest stocks as measured by their size, the FWDI portfolio management team uses forward-looking financial data as the primary focus when making portfolio allocation decisions. Therefore, the portfolio is allocated to companies with the best expected future earnings based on analyst consensus.
  2. Low Turnover - FWDI will typically have low portfolio turnover. Changes to the Fund’s portfolio typically occur upon the reporting and analysis of individual securities through the earnings season and rely heavily on a stock’s price and market cap relative to the future expected earnings. Lower turnover may lead to a more tax efficient investment due to less buy/sell transaction costs.
  3. Incorporation of Analyst Research - FWDI employs the research of dozens of the leading stock market analysts to assist in their allocation decisions. The portfolio management team uses a proprietary weighting methodology that focuses on analyst data and the forecasted expected future earnings with the goal that the most attractive companies receive the highest investment and the less attractive companies receive the lowest investment.
  4. True Stock Market Diversification - The traditional market-cap weighted index fund can end up overweighting the very large companies while underweighting the smaller ones potentially forfeiting additional returns. The FWDI portfolio management team invests in up to at least 250 of the largest companies in both the Developed and Emerging International Countries for true diversification in non-US companies.
  5. Elimination of Unqualified Companies - Unlike an index, our active management strategy allows for the elimination of investments from equities that do not meet our criteria. The elimination of investments in companies with poor projected profits or a decreasing projection of profits can have a positive effect on the return of an investment portfolio over time.

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.

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Fund Basics

  • Symbol

    FWDI

  • Exchange

    NYSE Arca

  • Inception Date

    06/20/2011

  • CUSIP

    00768Y842

  • Indicative Value

    FWDI.IV

  • Options

    No

Manager Minutes, November 2014

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Price History

As of: 11/27/2014
NAV$27.79Closing Price$27.60
Change$0.11Change$-0.14
Shares Outstanding650,000Volume96,883
4PM Bid/Offer Midpoint$27.62Premium/Discount$-0.17
Assets Under Management$18,061,436.60
Premium/Discount Historical Data

 

Top Holdings

As of: 11/27/2014
Ticker Name Weight
--- FIDELITY INSTL M MKT CLAS 1.78%
BITA BITAUTO HOLDINGS LTD-ADR <1%
NOAH NOAH HOLDINGS LTD-SPON ADS <1%
JKS JINKOSOLAR HOLDING CO-ADR <1%
JASO JA SOLAR HOLDINGS CO LTD-ADR <1%
CMCM CHEETAH MOBILE INC - ADR <1%
QIWI QIWI PLC-SPONSORED ADR <1%
HTHT CHINA LODGING GROUP-SPON ADS <1%
NILSY MMC NORILSK NICKEL JSC-ADR <1%
KT KT CORP-SP ADR <1%

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

    0.80%

  • Other Expenses

    0.75%

  • Gross Expense Ratio

    1.55%

  • Fee Waiver and/or Expense Reimbursement

    0.30%

  • Net Expense Ratio

    1.25%*

  • *The Advisor has contractually agreed to keep net expenses from exceeding 1.25% 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.