APCB Profile
Trust for Professional Managers is an actively managed exchange-traded fund (ETF) that strategically combines both active and passive investment approaches to maximize cost efficiency, tracking accuracy, and potential returns relative to its benchmark, the Bloomberg U.S. Aggregate Bond Index. The fund seeks to provide a balanced exposure to the fixed income market by blending these strategies, allowing investors to benefit from the precision of passive management while capturing opportunities through active decision-making. This dual approach is designed to enhance overall performance while closely aligning with the underlying index.
Under normal market conditions, the fund invests at least 80% of its net assets in fixed income securities that are rated investment grade or higher. These high-quality bonds provide a stable foundation for the portfolio, offering relatively low risk and consistent income. The funds focus on investment-grade securities ensures that the majority of its assets are allocated to bonds with a strong credit rating, which helps to minimize the likelihood of default and provides investors with a reliable stream of income.
In addition to its core investment in investment-grade bonds, the Trust for Professional Managers ETF also allocates up to 20% of its net assets to high-yield debt securities, commonly referred to as "junk bonds." These securities offer higher potential returns due to their elevated risk profile, providing the fund with an opportunity to enhance overall yield. By selectively investing in high-yield bonds, the fund seeks to strike a balance between income generation and risk management, aiming to optimize returns without significantly increasing exposure to credit risk.
The Trust for Professional Managers ETF is tailored for investors who seek a diversified fixed income portfolio with the potential for both stability and growth. By blending active and passive management, the fund aims to outperform its benchmark while maintaining a strong alignment with the broader U.S. bond market. Its strategic allocation between investment-grade and high-yield bonds makes it an attractive option for investors looking to achieve a balanced mix of income and capital appreciation, while also managing risk through a carefully constructed portfolio.
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