Full Press Release Details
SAN FRANCISCO, CA--(Marketwire - January 15, 2009) - Grail Advisors, an innovator in the
development and distribution of active Exchange Traded Funds (ETFs), has
filed a registration statement for two new actively managed ETFs, the Grail
American Beacon Large Cap Value ETF and the Grail American Beacon
International Equity ETF. The funds represent the industry's first
actively-managed ETFs in the equity space using traditional active
Both funds will be sub-advised by American Beacon Advisors, Inc. of Fort
Worth, Texas, a firm noted for its 'manager-of-managers' approach to
portfolio construction. American Beacon, which oversees more than $37
billion* in equity and fixed-income assets, expects to manage the new Grail
Advisor offerings in substantially similar fashion to the American Beacon
Large Cap Value and American Beacon International Equity strategies.
"These funds are an enormous leap forward in the evolution of ETFs," said
William M. Thomas, CEO of Grail Advisors LLC. "We've captured a unique
opportunity to deliver real active portfolio management in an ETF structure
that provides more transparency than traditional mutual funds. Grail
Advisors wants to set itself apart by offering actively-managed products
driven by fundamental analysis, as opposed to simple index or enhanced
Grail Advisors will serve as the funds' Manager and intends to operate both
of the new ETFs as actively managed, multi-manager ETFs. The funds, similar
to traditional mutual funds and unlike other active-equity ETFs in the
marketplace, will allow portfolio managers unrestricted trading. American
Beacon Advisors, the first of which Grail Advisor executives expect to be a
premier list of sub-advisor relationships, will be responsible for
allocating day-to-day portfolio management decisions for each ETF among one
or more investment managers.
"We're delighted to be out in front of the investment industry with Grail
Advisors," said William F. Quinn, chairman of American Beacon Advisors.
"These new funds are the first to combine the kind of fundamental, active
management we perform at American Beacon with ETFs, an investment vehicle
that provides many benefits to marketplace participants today."
Grail Advisors' approach resolves the disclosure issue that has previously
challenged the introduction of actively managed ETFs. The new funds'
portfolio holdings will be publicly disseminated on the Grail Advisors
website each day the funds are open for business. "Investors of all types
are coming to expect this level of reporting," said Mr. Thomas. "Daily
transparency is one of the major components to our strategy."
The two funds will represent the first of what are anticipated to be a
series of offerings of the Grail Advisors ETF Trust. The San
Francisco-based firm intends to make the benefits of ETFs available to the
large pool of investors who currently select traditional mutual funds or
other vehicles to access active portfolio management. Mr. Thomas says Grail
Advisors is currently in discussions with a number of leading financial
institutions and asset managers and expects to launch a number of
customized, actively-managed ETFs this year.
About Grail Advisors LLC
Grail Advisors LLC, an innovator in the creation and distribution of
actively managed Exchange Traded Funds, partners with established asset
managers, distributors, and related financial institutions to design and
deliver actively managed ETFs. Grail Advisors was created to deliver ETFs
using fully disclosed active portfolio management to the global investment
About American Beacon Advisors, Inc.
Established in 1986, American Beacon Advisors, Inc. is an experienced
provider of investment advisory services to institutional and retail
markets. American Beacon Advisors also manages the American Beacon Funds, a
series of low-cost, no-load mutual funds open to institutional investors,
retirement accounts such as IRAs, and individual investors. The fund family
includes a variety of portfolios spanning longer-range investments in
international and domestic equity categories as well as short-term
investment options including money market funds.
There are risks involved with investing including possible loss of
principal. The ETFs will be actively managed and the Shares may trade above
or below their net asset value. The trading price of Shares may deviate
significantly from net asset value during periods of market volatility.
Shares will not be FDIC insured, may lose value, and will have no bank
In addition to the normal risks of investing, foreign investing involves
special risks, such as risk of loss from currency fluctuation or political
or economic uncertainty. The International Equity ETF may also invest in
certain derivatives, which will subject the fund to the risks associated
with derivatives. The value of derivatives may rise or fall more rapidly
than other investments.
An investor should consider investment objectives, risks, charges and
expenses carefully before investing. The Prospectus contains this and other
information. For more complete information about the Grail American Beacon
ETFs or to obtain a Prospectus, call 415-677-5870. Please read the
Prospectus carefully before investing.
The information in the Prospectus is not complete and may be changed. The
ETFs may not sell their Shares until the registration statement filed with
the Securities and Exchange Commission is effective. The Prospectus is not
an offer to sell the ETFs' Shares, and the ETFs are not soliciting an offer
to buy their Shares in any jurisdiction where the offer or sale is not
Grail American Beacon Large Cap Value ETF and Grail American Beacon
International Equity ETF are distributed by ALPS Distributors, Inc.
The American Beacon Funds are distributed by Foreside Fund Services, LLC.
ALPS Distributors, Inc. is not affiliated with American Beacon Advisors,
Inc. or Foreside Fund Services, LLC.
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exchange traded funds