Active Management for Income: A Better Approach | ETF Trends

We hear two things every week from advisors across the country: Help me manage my risk, and for the love of Pete, help me find some income.

In the upcoming webcast, Active Management for Income: A Better Approach, Jason Greenblath, Vice President, Senior Portfolio Manager, American Century Investments; and Sean Walker, Vice President, ETF Specialist, American Century Investments, will get into the weeds of how to really extract higher yields from a bond market that, let’s face it, isn’t delivering a lot of topline yield if you look at the major indexes.

For example, the actively managed American Century Multisector Income ETF (MUSI) is designed for investors pursuing consistent income in a tax-efficient ETF vehicle. The team targets attractive yield throughout the market cycle while offering investors access to a diverse opportunity set of securities, including investment-grade corporates, high-yield corporates, emerging market debt, and securitized bonds.

Sector allocation decisions are based on global macro-outlook, historical spreads, and cross-sector valuations and are informed by American Century’s global macro strategy & sector specialist team views. Security selection is led by long-tenured sector specialists who apply fundamental, bottom-up analysis to assess relative value and creditworthiness.

Additionally, the actively managed American Century Diversified Corporate Bond ETF (NYSEArca: KORP) seeks current income by emphasizing investment-grade debt while dynamically allocating a portion of the portfolio to high yield. KORP adjusts investment-grade and high-yield components to balance interest rate and credit risk. The strategy screens individual credits to seek those with sound fundamentals, reduced default risk, attractive valuations, and liquidity.

Additionally, the ETF adjusts industry and duration exposures as risks and opportunities emerge. Up to 35% of the fund’s net assets may be invested in high-yield securities or junk bonds. The fund may also invest in derivative instruments such as futures contracts and swap agreements. The weighted average duration of the fund’s portfolio is expected to be between three and seven years.

Financial advisors who are interested in learning more about yield-generating ideas can register for the Wednesday, September 8 webcast here.