Cambria Launches Sovereign High Yield Bond ETF

New fund provides smart beta approach to global bonds

Feb 23, 2016, 09:45 ET from Cambria Investment Management

LOS ANGELES, Feb. 23, 2016 /PRNewswire/ -- The Cambria ETF Trust and its investment manager, Cambria Investment Management, LP, today launched the Cambria Sovereign High Yield Bond ETF (Ticker: SOVB). This is the firm's seventh fund in Cambria's suite of ETFs, as well as Cambria's first entry into fixed income.

SOVB, listed on the NYSE Arca exchange, applies the Cambria's core principles of value investing to fixed income by buying and holding attractively priced foreign government bonds with high yield characteristics. While traditional bond funds are often concentrated in the largest debtors, SOVB holds a well-diversified portfolio of liquid sovereign debt, with no one exposure over 10%. The fund universe provides potential access to the bonds of 44 countries and will pay income on a quarterly basis.

"Foreign bonds are the largest asset class in the world, yet dramatically underrepresented in investor portfolios," said Meb Faber, Cambria Chief Investment Officer. "Moving away from a market-cap strategy and employing a value lens to foreign government bonds could help investors gain smarter access to income in a yield-starved environment."

Eric Richardson, Cambria's Chief Executive Officer, added: "Financial advisors and high net worth individuals have come to rely on Cambria's low-cost smart beta strategies. We're pleased to further expand our suite of academically-driven funds to meet investors' portfolio needs."

ABOUT CAMBRIA INVESTMENT MANAGEMENT, LP

Cambria Investment Management, LP, based in Los Angeles, California, is a SEC registered investment management firm employing a disciplined multi-asset, global quantitative research process. Cambria provides investment management services to high net worth individuals and institutions through separately managed accounts, private funds, and public exchange-traded funds.  Cambria is also the investment manager of the Cambria Global Asset Allocation ETF (NYSE: GAA) Cambria Global Momentum ETF (NYSE: GMOM), Cambria Global Value ETF (NYSE: GVAL), Cambria Shareholder Yield ETF (NYSE: SYLD), Cambria Foreign Shareholder Yield ETF (NYSE: FYLD) and Cambria Value and Momentum ETF (NYSE: VAMO).  Global diversification through asset allocation, coupled with prudent risk management, is the foundation of Cambria's investment philosophy. To learn more about Cambria, please visit www.cambriainvestments.com and www.cambriafunds.com. Meb Faber can be followed @MebFaber.

DISCLOSURE

To determine if this Fund is an appropriate investment for you, carefully consider the Fund's investment objectives, risk factors, charges and expense before investing. This and other information can be found in the Fund's prospectus which may be obtained by calling 855-383-4636 (ETF INFO) or visiting our website at www.cambriafunds.com. Read the prospectus carefully before investing or sending money.

The Cambria ETFs are distributed by SEI Investments Distribution Company, which is not affiliated with Cambria Investment Management, LP, the Investment Adviser for the Fund.

ETFs are subject to commission costs each time a "buy" or "sell" is executed. Depending on the amount of trading activity, the low costs of ETFs may be outweighed by commissions and related trading costs.

Shares are bought and sold at market price (closing price) not net asset value (NAV) and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined), and do not represent the return you would receive if you traded at other times. Buying and selling shares will result in brokerage commissions. Brokerage commissions will reduce returns.

There is no guarantee that the Fund will achieve its investment goal. Investing involves risk, including the possible loss of principal. Bonds and bond funds are subject to interest rate risk and will decline in value and interest rates rise. High yield bonds involve greater risk of default or downgrade and are more volatile than investment grade securities, due to the speculative nature of their investments. International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markers involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Investments in smaller companies typically exhibit higher volatility. Investments in sovereign and quasi-sovereign debt obligations involve special risks not present in corporate debt obligations. The issuer of the sovereign debt or the authorities that control the repayment of the debt may be unable or unwilling to repay principal or interest when due, and the Fund may have limited recourse in the event of a default. The Fund is not diversified.

There is no guarantee dividends will be paid.

There are special risks associated with margin investing. As with stocks, you may be called upon to deposit additional cash or securities if your account equity declines. 

Not FDIC Insured. May Lose Value. Not Bank Guaranteed.

Media Contact:

Hod Klein/Ryan Gorman


212-704-7385


hod@dlpr.com / rgorman@dlpr.com

 

SOURCE Cambria Investment Management



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