US-based AdvisorShares has repurposed one of its ETFs, changing the fund’s investment advisor and giving it a new strategy.
Jeffrey Gundlach, Founder and CEO of DoubleLine.
The ETF formerly known as the AdvisorShares Wilshire Buyback ETF is now the AdvisorShares DoubleLine Value Equity ETF (DBLV US).
Wilshire Associates has been dropped as investment advisor in favour of DoubleLine Capital.
The actively managed US equity ETF will switch its focus from firms who are engaged in share buyback programmes to classic value opportunities.
According to AdvisorShares, this includes companies with temporarily depressed earnings as well as quality value opportunities in durable franchises or disruptor franchises.
“Our core mandate strives to deliver better risk-adjusted returns and put our investors first,” said Jeffrey Gundlach, Founder and CEO of DoubleLine. “We are happy to forge this partnership with AdvisorShares and believe that DBLV will provide a compelling and transparent value equity investment.”
“DoubleLine’s distinguished track record and exemplary portfolio management span multiple asset classes,” added Noah Hamman, CEO of AdvisorShares. “We’re pleased to announce this partnership and believe that both current and prospective fund shareholders will benefit from DoubleLine’s portfolio management, which will now showcase their equity expertise in a fully transparent and operationally efficient ETF structure.”
“Value investing is a timeless discipline which can deliver attractive risk-adjusted returns when consistently and intelligently applied over time,” said Emidio Checcone, co-Portfolio Manager for DBLV. “Moreover, growth investing has enjoyed an extraordinarily protracted and pronounced period of outperformance relative to value. This creates a potential set-up for value investing to return to favour. Thus, this could be a timely juncture to invest in DBLV.”
DBLV remains listed on NYSE Arca. The fund comes with an expense ratio of 0.99% and has approximately $80m in assets under management.
The removal of Wilshire Associates in favour of DoubleLine Equity marks the second time the fund has switched investment advisor. TrimTabs Asset Management was the original manager of the ETF before being ousted in June 2016.