Grail Advisors Registers Fixed-Income Active ETFs

October 05, 2009


Grail Advisors took another step to expand the active exchange-traded fund space with the registration of two new active fixed-income ETFs. Like other actively managed bond funds, the new offerings would allow for unrestricted trading.

Fixed-income specialist McDonnell Investment Management, LLC, will serve as subadviser to both the Grail McDonnell Intermediate Municipal Bond ETF and the Grail McDonnell Core Taxable Bond ETF.

The Securities and Exchange Commission should review the filings in the next 60 to 90 days, a Grail Advisors spokesman said, when the company will have further details on the funds.

"Our stated goal has been to bring a full lineup of traditional, active fund managers and strategies to the ETF marketplace," William M. Thomas, CEO of Grail Advisors, said in a release.

Just last week, the company launched four actively managed ETFs with RiverPark Advisors that use a traditional qualitative stock-picking strategy. (You can read a detailed breakdown of these ETFs here.)

Although active management has yet to attract significant assets in the ETF, Grail Advisors hopes that will change: The company plans to launch 24 to 30 active ETFs in the next year or so.

Grail Advisor's first active ETF, the Grail American Beacon Large Cap Value ETF (NYSEArca: GVT), was launched in May.



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