Investment Services Provider Launches Hedge Trust

September 5, 2013 (PLANSPONSOR.com) – Hennion & Walsh Asset Management, an investment services provider, has released its SmartTrust, Rising Interest Rates Hedge Trust, Series 1.

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.

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