PT Asset Management Launches Actively Managed Short-Term Bond ETF

BY PR Newswire | CORPORATE | 04/09/24 11:21 AM EDT

STBF is a diversified portfolio seeking to thrive in all markets, regardless of interest rates

CHICAGO, April 9, 2024 /PRNewswire/ --?PT Asset Management, LLC (PTAM), a boutique fixed income asset manager with $7.7 billion in assets under management, proudly debuts its inaugural exchange traded fund (ETF), the Performance Trust Short Term Bond ETF , which began trading on the CBOE today. With over fifteen years of experience managing fixed income strategies, PTAM is confidently entering the ETF arena, aiming to offer investors a diversified, actively managed short-term bond strategy tailored to thrive in diverse market conditions.

STBF is a diversified portfolio seeking to thrive in all markets, regardless of interest rates

Leveraging their proprietary investment process, Shape Management, PTAM has garnered a reputation for challenging conventional bond metrics and not relying on macroeconomic predictions. Shape Management is a disciplined and repeatable mathematical approach aimed at analyzing the risk-return profile of a bond's future cash flows. With this proprietary methodology, PTAM endeavors to provide investors with an innovative fixed income solution designed to provide excess return regardless of interest rate movements.

"The launch of STBF marks a significant milestone for PTAM, showcasing our commitment to pioneering advancements in fixed income investing," said Sean Dranfield, CEO & Principal of PTAM. "We're thrilled to offer access to our proprietary methodology, Shape Management, now available in an investor preferred, tax-efficient ETF wrapper."

The underlying portfolio of STBF is meticulously curated to potentially deliver strong returns across varying market environments while maintaining predominantly high credit quality. "Typical short-term bond funds leave much to be desired. Our new ETF addresses this through its diversified portfolio that spans the full spectrum of fixed income sectors, including CLOs, Auto ABS, Municipals, and CMBS," said Taylor Huffman, CFA, Client Portfolio Manager at PTAM.

STBF sets itself apart through its math-based approach to portfolio construction combined with active management. PTAM is staffed with seasoned experts that have navigated previous credit cycles and are able to capitalize on pricing and structural inefficiencies. "Given the current shape of the yield curve and investor concerns around future interest rate volatility and uncertainty, we believe STBF is a compelling tool for enhancing existing portfolios," added Huffman.

For more information about STBF and PT Asset Management, visit PTAM.com

About PTAM
We are a Chicago-based, boutique fixed-income asset manager that applies a unique interest-rate agnostic approach that seeks to deliver superior long-term results in various market environments. As of March 31, 2024, PTAM had $7.7 billion in assets across multiple products, including mutual funds and separately managed accounts for institutional investors.

Disclosure

The Fund's investment objectives, risks, charges, and expenses must be considered carefully before investing. The summary and statutory prospectuses contain this and other important information about the investment company, and may be obtained by calling 1.877.738.9095. Read carefully before investing.?

Investing involves risk. Loss of principal is possible.

Fixed-income securities held by the Fund are subject to interest rate risk, call risk, prepayment and extension risk, credit risk, and liquidity risk. Interest rates may go up resulting in a decrease in the value of the fixed-income securities held by the Fund. An issuer may not make timely payments of principal and interest. An issuer may "call," or repay, its high yielding bonds before their maturity dates. Fixed-income securities subject to prepayment can offer less potential for gains during a declining interest rate environment and similar or greater potential for loss in a rising interest rate environment. Limited trading opportunities for certain fixed-income securities may make it more difficult to sell or buy a security at a favorable price or time. In addition to the normal interest rate, default and other risks of fixed-income securities, CDOs and CLOs carry additional risks, including the possibility that distributions from collateral securities may not be adequate to make interest or other payments, the quality of the collateral may decline in value or default, the Fund may invest in CDOs and CLOs that are subordinate to other classes, values may be volatile, and disputes with the issuer may produce unexpected investment results High-yield fixed-income securities or "junk bonds" are fixed-income securities rated below investment grade by a NRSRO. Although junk bonds generally pay higher rates of interest than higher-rated securities, they are subject to a greater risk of loss of income and principal. Junk bonds are subject to greater credit risk than higher-grade securities and have a higher risk of default. RMBS are subject to the risks generally associated with fixed-income securities and mortgage-backed securities. Credit risk on RMBS arises from losses due to delinquencies and defaults by borrowers in payments on the underlying mortgages. The rate of delinquencies and defaults on RMBS and the amount of the resulting losses depend on a number of factors, including general economic conditions, particularly those in the area where the related mortgaged property is located, the level of the borrower's equity in the mortgaged property and the individual financial circumstances of the borrower. The Fund's use of derivatives may cause losses due to the unexpected effect of market movements on a derivative's price, or because the derivatives do not perform as anticipated, or are not correlated with the performance of other investments which they are used to hedge. Because the use of derivative instruments often creates economic leverage, the Fund's investments in derivatives could create exposure greater than the value of the securities in the Fund's portfolio. Investing in derivative instruments involves risks different from, and possibly greater than, the risks associated with investing directly in securities and other traditional investments. The Fund is a recently organized, management investment company with no operating history. As a result, prospective investors have a limited track record on which to base their investment decision. There is also a risk that the Fund will not grow to or maintain an economically viable size, in which case it could ultimately liquidate without shareholder approval.

Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the funds. Brokerage commissions will reduce returns.

PT Asset Management, LLC ("PTAM") is the advisor to the PTAM Funds, which are distributed by Foreside Fund Services, LLC ("Foreside"). PTAM and Foreside are not affiliated.

?2024 PT Asset Management, LLC. All Rights Reserved.?

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SOURCE PT Asset Management

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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