Alex Petrone, Director for Fixed Income at Rockefeller Asset Management, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss how investors can access differentiated active strategies in newly offered ETFs.
Rockefeller Asset Management has been managing assets for generations, born out of the legacy of investing for the Rockefeller family. Rockefeller is focused on niche solutions where the firm’s experience and competitive advantage seek to deliver alpha for clients. This includes global equities, small and mid-cap (SMID) stocks, alternatives, and fixed income.
ETFs can maximize the total return that can be earned by clients. Because the main goal of municipal bond investors is tax efficiency, ETFs are an optimal way to invest in munis. Rockefeller now offers five actively managed ETFs, including three municipal bond offerings, a global equity fund, and a US SMID cap fund, that were converted from actively managed strategies. Petrone believes that active management can add value when managing global equity, US SMID cap, and municipal bond funds. High-yield munis are especially attractive, offering tax-equivalent yields as high as 9%.
These solutions can help investors to move beyond the cap-weighted indices that are heavily concentrated in the technology sector. Active ETF strategies can be strong satellites and complement an investor’s core allocations.
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