European ETf provider HANetf has launched the Infrastructure Capital Preferred Income Ucits ETF on Germany’s Deutsche Borse Xetra. The ETF follows an actively managed income strategy and is focused mainly on US preferred stocks.
The fund is built to generate a high level of current income through a diversified mix of income-producing securities, according to the provider. It aims to blending quantitative screening with hands-on security selection. The manager focuses on securities it believes are undervalued, looking at at factors like credit and term premium, liquidity, sector exposure and market capitalisation.
By taking an active approach, the ETF looks to take advantage of pricing inefficiencies created by interest rate moves, credit risk and market dislocations. According to the provider, the fund aims to give investors access to a wider set of high-yield opportunities than they would typically find in passive income funds.
The ETF will pay a managed monthly distribution, allowing investors to generate regular income that can be reinvested or reallocated.
The ETF is managed by Infrastructure Capital Advisors, a boutique financial firm. It will be listed on London Stock Exchange and Borsa Italiana in due course.
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Jay Hatfield, CEO and CIO at Infrastructure Capital Advisors, commented: “We are excited to bring our preferred income strategy to global markets. We believe it's an opportune time for global investors to capture higher yielding income investments as interest rates are falling globally. We are applying our comprehensive investment process to PFFI, which is centred around risk management. We are thrilled to be partnering with HANetf and believe the team are offering innovative investment products so investors can diversify their portfolios and benefit under various market environments.”
Hector McNeil, co-founder and co-CEO of HANetf, commented: “We’re delighted to be partnering with Infrastructure Capital Advisors to launch the Infrastructure Capital Preferred Income UCITS ETF. The ETF is designed to allow investors to generate regular income, which can then be reinvested or reallocated – at a time when investors are increasingly seeking reliable income and smarter ways to navigate volatile markets.
With Infrastructure Capital’s research-driven active management process, we believe this fund offers a compelling alternative to traditional passive income strategies – providing the flexibility to capture attractive yield opportunities while managing downside risk.
This is the 14th active ETF on the HANetf platform, and it arrives amid an increasingly high volume of enquiries from asset managers about launching active strategies with us. The active space is growing rapidly in Europe, and is showing no signs of slowing down anytime soon. We look forward to growing our active range with both new and existing partners.”
