Rockefeller Asset Management is the latest money manager to capitalize on the muni ETF boom.
The New York-based division of Rockefeller Capital Management is launching its first actively managed fixed income exchange-traded funds. The products, which will be managed by a trio of portfolio managers who joined earlier this year from Invesco Ltd., will focus on lower-rated bonds.
There are now more than 100 muni ETFs with a combined $131 billion as asset managers vie to capture money that’s been flowing into the low-cost and easy-to-trade products. Goldman Sachs Asset Management and PGIM have both launched new funds this year.
Demand has been particularly strong for high-yield muni bonds. The securities are outperforming even US corporate high-yield bonds so far this year, returning over 6%, according to Bloomberg indexes.
“We believe higher-yielding municipals represent a really compelling asset class,” said Alex Petrone, director of fixed income at Rockefeller Asset Management. She said the securities have a low correlation with equities, which means that they could provide a buffer for investors when there is weakness in the stock market.
Scott Cottier, Mark DeMitry, and Michael Camarella, who previously helped oversee high-yield muni funds at Invesco, will manage the funds.
The Rockefeller Opportunistic Municipal Bond ETF, which will trade with the ticker RMOP, will typically invest at least 50% of its total assets in municipal bonds that have a credit rating of BBB+ or Baa1 or lower.
The company is also launching the Rockefeller California Municipal Bond ETF and the Rockefeller New York Municipal Bond ETF, which will invest in tax-exempt bonds in those states. These funds likely appeal to investors looking to shield their income from high state taxes.
Those two funds can invest up to 25% of their assets in muni bonds that are below investment-grade.
IRAs now hold nearly twice the assets of 401(k) plans — and most of that money didn't arrive through annual contributions.
A new survey finds that many women prioritize financial security but continue to leave savings in accounts that may not keep pace with inflation.
Roundhill, Bitwise and GraniteShares funds remain on hold while the agency weighs how novel ETFs should be regulated.
"Shares of alternative assets managers have lagged this year as investors grow wary of private-credit exposure."
The fintech platform is touting a new AI-free Planning Observations feature, which draws on IRS tax records to uncover opportunities for advisors.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
