NEW YORK, June 2, 2016 /PRNewswire/ -- AdvisorShares has announced its intention to replace TrimTabs Asset Management (TTAM), the investment adviser that conceived the TrimTabs Float Shrink ETF (NYSE Arca: TTFS), and the manager after which the fund was named and branded, thereby changing the ETF strategy.
Through the use of TrimTabs' data-driven methodology, the ETF has earned a coveted five-star Morningstar rating. Since inception, TrimTabs' proprietary methodology has delivered annualized returns of 19.22%1 as of March 31, 2016, and was recently named by On Wall Street as the number one performing actively managed ETF over the past three years.2
Since inception, TTFS has also outperformed both the NASDAQ Buyback Achievers Index (NASDAQ Index) by 2.2%3 annually and the Russell 3000 Index (Russell 3000) by 2.49%4 annually. Additionally, TTFS gained 3.81% in the first quarter of 2016.5
In light of this performance record, TrimTabs questions the appropriateness of the decision by the AdvisorShares' Trust to replace the manager and thereby change the ETF's strategy.
"We have a wonderful community of loyal investors who believe in our float-shrink strategy, based on 30 years of our investment research," said Charles Biderman, founder and CEO of TTAM. "Our shareholders have expressed disappointment that they would now be forced to accept a different investment strategy than what they originally purchased."
TTAM intends to offer the Float Shrink strategy in a separately managed account (SMA) format with a lower minimum investment and lower fees to accommodate its clients. "We stand by our commitment to our investors. They are our priority," said Ted Theodore, the portfolio manager of TTFS. "We intend to continue to employ our strategies in an effort to deliver investment solutions that reflect that commitment."
About TrimTabs Asset Management
TrimTabs Asset Management was founded in 2005 to develop and manage investment products based on TrimTabs Investment research. TTAM is under the leadership of founder and CEO, Charles Biderman, who is interviewed regularly on CNBC, Bloomberg TV, Barron's, The Wall Street Journal, and Forbes. He holds a B.A. from Brooklyn College, and an M.B.A. from Harvard Business School. TTAM has a veteran staff averaging 35 years of experience in portfolio management, marketing, trading, compliance and operations.
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Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost.
The performance shown is for the stated time periods only; due to market volatility, each account's performance may be different. Returns are shown net of fees and expenses.
Nothing contained herein constitutes investment, legal, tax or other advice nor is it to be relied on in making an investment or other decision. Opinions expressed herein are those of TrimTabs Asset Management or the attributed party only.
The NASDAQ US Buyback Achievers Index is comprised of United States (US) securities issued by corporations that have effected a net reduction in shares outstanding of 5% or more in the trailing 12 months.
The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market. One cannot invest directly in an index.
There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of principal amount invested. Investing in mid and small capitalization companies may be riskier and more volatile than large cap companies. Other Fund risks include market risk, equity risk, large cap risk, liquidity risk and trading risk. Please see prospectus for details regarding risk.
The Morningstar Rating™ is provided for those exchange-traded funds ("ETFs") with at least a three-year history. Ratings are based on the ETF's Morningstar Risk-Adjusted Return measure which accounts for variation in monthly performance, placing more emphasis on downward variations and rewarding consistent performance. An ETF's risk-adjusted return includes a brokerage commission estimate. This estimate is intended to reflect what an average investor would pay when buying or selling an ETF. PLEASE NOTE, this estimate is subject to change and the actual brokerage commission an investor pays may be higher or lower than this estimate. Morningstar compares each ETF's risk-adjusted return to the open end mutual fund rating breakpoints for that category. Consistent with the open-end mutual fund ratings, the top 10% of ETFs in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The overall rating for an ETF is based on a weighted average of the time-period ratings (e.g., the ETF's 3, 5, and 10 year rating). The determination of an ETF's rating does not affect the retail open end mutual fund data published by Morningstar. Past performance is no guarantee of future results.
The On Wall Street ratings were provided for 18 actively managed ETFs with at least a three-year history and assets under management of at least $100 million. The ratings were based on average annual total returns over the most recent three-year period. All data from Morningstar.
Ratings may not be representative of any one client's experience, since the ranking/rating aggregates all or a sample of all experiences.
Ratings are not indicative of future performance, nor are they a recommendation to invest in the rated fund.
TTAM did not pay a fee to participate in either of the ratings.
1 AdvisorShares fact sheet, 2016, available at: http://advisorshares.com/fund/ttfs. Performance figures noted are based on Net Asset Value (NAV) returns. Market returns by the ETF during the specific periods noted are the same as NAV returns.
3See AdvisorShares Fact Sheet, 2016.
5See AdvisorShares Fact Sheet, 2016.
SOURCE TrimTabs Asset Management