Full Press Release Details
SAN FRANCISCO, CA--(Marketwire - May 4, 2009) - Grail Advisors, an innovator in the
development and distribution of actively managed exchange traded funds
(ETFs), today announced that trading of the "Grail American Beacon Large
Cap Value ETF" has begun on the New York Stock Exchange. The new fund,
which represents the industry's first ETF to use traditional active
management, trades under the symbol GVT.
Grail Advisors will serve as the fund's manager. Similar to traditional
actively managed mutual funds and unlike other active-equity ETFs in the
marketplace, the new Grail Advisors offering allows portfolio managers
unrestricted trading.
The Grail American Beacon Large Cap Value ETF is sub-advised by Fort Worth,
Texas-based American Beacon Advisors, Inc., a firm known for its
multi-manager approach to portfolio construction. Assets in the new Grail
Advisors ETF will be allocated among three noted investment managers --
Brandywine Global Investment Management, LLC, Hotchkis and Wiley Capital
Management, LLC, and Metropolitan West Capital Management, LLC.
"With a team of veteran managers delivering traditional, active management,
the Grail American Beacon Large Cap Value ETF is a step forward in the
evolution of exchange traded funds," said William M. Thomas, CEO of Grail
Advisors LLC. "We've married all the benefits of an ETF structure -- lower
costs, tax efficiency, transparency of holdings, and intra-day trading --
with actively managed strategies from a leading asset manager."
Expenses for the Grail American Beacon Large Cap Value ETF, the first and
only ETF to deliver fundamental analysis and unrestricted trading to the
marketplace, will be substantially less than any similarly managed mutual
fund. The fund's maximum expense of 0.79% is 54 basis points, or 41%, lower
than the Morningstar large-cap value universe average of 1.33%.
"American Beacon is excited to bring its distinctive 'manager-of-managers'
strategy to the growing realm of actively managed ETFs," said William F.
Quinn, chairman of American Beacon Advisors. "With this new fund, American
Beacon continues to facilitate the development of unique and low-cost
investment products aimed at delivering long-term results and well-defined
objectives. We're delighted to be out in front of this likely trend with
The First in a Series of Grail ETFs
Grail American Beacon Large Cap Value ETF represents just the first in a
series of planned offerings by Grail Advisors. 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. A second offering -- the Grail
American Beacon International Equity ETF -- is on track to begin trading
later this year and will be the first ETF in the international equity space
to incorporate traditional active 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, including single-manager funds
that will provide full, daily disclosure on all holdings.
"We're looking to partner with leading investment management firms that
consider full disclosure a competitive advantage in the retail
marketplace," said Mr. Thomas. "Daily transparency is a major benefit to
index ETF investors, and it's one of the major components of our actively
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.
American Beacon Advisors is an experienced provider of investment advisory
services to institutional and retail markets. Since 1986, American Beacon
Advisors has offered a variety of products and services including a variety
of mutual funds, corporate cash management, and separate account
management. American Beacon Advisors serves defined benefit plans, defined
contribution plans, foundations, endowments, corporations, and other
institutional investors as well as retail clients.
American Beacon Advisors also manages the American Beacon Funds, a series
of low-cost mutual funds open to institutional investors, retirement
accounts such as IRAs, and individual investors. The Fund family currently
includes several portfolios spanning a variety of longer-range investments
from international and domestic equity through balanced portfolios. The
family also includes short-term investment options such as bond funds and
William M. Thomas is a registered representative of ALPS Distributors, Inc.
Ordinary brokerage fees apply.
Basis Point: One hundredth of a percentage point (0.01%).
The Fund has no operating history.
There are risks involved with investing including possible loss of
principal. The ETFs are 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 are not 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.
Grail American Beacon Large Cap Value ETF and Grail American Beacon
International Equity ETF are distributed by ALPS Distributors, Inc.
ALPS Distributors, Inc. is not affiliated with the mentioned entities -
Brandywine Global Investment Management, LLC, Hotchkis and Wiley Capital
Management, LLC, and Metropolitan West Capital Management, LLC.
Contact Information: Contact: