This two-year trust product (ticker symbol: SMRRAX) primarily seeks to achieve the potential for total return during market environments when interest rates increase. It also attempts to generate a high level of current income. In order to accomplish these goals, the trust invests in a diversified, unmanaged portfolio allocated to securities of asset classes that performed well during previous periods of rising interest rates based upon historical research conducted by Hennion & Walsh.
“We believe interest rates will begin to increase on a measured basis over the next two to three years, and in response to the expressed needs of the many financial advisers we work with across the country, we have introduced a strategy that we believe will help advisers meet with growth and income objectives of their clients if this prediction becomes a reality,” said Kevin Mahn, president and chief investment officer (CIO) of Hennion & Walsh.
The trust’s portfolio is divided into:
- Approximately 40% common stocks of domestic large-cap companies;
- About 30% common stocks of closed-end funds that generally invest in senior corporate loans and other income-producing securities;
- Approximately 20% common stocks of one or more exchange-traded funds (ETFs) with returns that correspond to the inverse of at least one U.S. Treasury index; and
- Approximately 10% to the common stock of at least one ETF with returns corresponding to one or more convertible bond indices.
More information on this product is available here.
« DOL Posts New FAQ About the ACA