ALPS Advisors has adopted the $75 million Activa Value Fund, merging the Wellington Management-subadvised offering into a newly created product of ALPS' Financial Investors Trust. ALPS executives said the Activa deal is the first of what would be "a number of fund adoptions" for the Denver firm.
An ALPS representative was not immediately available for further comment.
Company Press Release
Denver, CO–September 2, 2009–ALPS Advisors, Inc. (ALPS), a leading provider of advisory solutions to the investment management industry, today announced the adoption of the Activa Value Fund. Shareholders have approved the replacement of Activa Asset Management, the fund’s previous adviser, with ALPS Advisors, Inc.
Wellington Management Company, LLP, Activa Value Fund’s sub-adviser, will continue to manage the investment portfolio. The approximate $75 million fund–the successor to the Amway Mutual Fund launched in 1971–has been merged into a newly created offering of the ALPS-sponsored Financial Investors Trust. “Fund adoptions”, unlike fund closings or liquidations, allow a sub-scale fund with a good track record to find new life with an acquiring asset manager. The ALPS adoption of the Activa Value Fund will provide investors continued access to Wellington Management’s ‘Value Intersection’ investment approach.
“Our mission at ALPS is to fill niche investment segments with distinctive solutions, and I can’t imagine a more ideal fit to that strategy than Wellington Management’s ‘Value Intersection’ approach,” said Corey Dillon, Vice President and Director of Institutional Advisory Services for ALPS Advisors, Inc. “Having a top-notch manager like Wellington Management running such an important investment space gives us an impressive edge in the marketplace.”
Activa Value Fund’s portfolio manager, Mammen Chally, CFA, will maintain his role for ALPS. Mr. Chally is a member of Wellington Management’s Intersection team and manages the Activa Value Fund by using a blend of quantitative and fundamental analysis. Wellington Management’s proprietary methodology blends the advantages of quantitative and fundamental analysis, allowing the portfolio manager room to adapt to market conditions while remaining consistent on style and results.
Fund Adoptions
The fund represents the first of what ALPS believes will be a number of fund adoptions for its Financial Investors Trust. The dramatic drop in asset values from the market’s peak in 2008 has forced many asset managers and mutual fund companies to reevaluate product lineups and many are choosing to consolidate their smaller, often unprofitable, offerings.
The process is highly attractive for a progressive firm like ALPS as it can adopt specific funds to plug specific spaces without having to buy an entire complex. “A key strategy for us going forward will be adopting products in areas we’re not already managing and relying on our distribution platform to build assets,” says Dillon. “The Activa Value Fund is a perfect example of the kind of quality offering we’re looking to add to our investment lineup."
The Activa Value Fund is being offered in two share classes covering institutional and retail audiences and will be available on most mutual fund platforms and through financial intermediaries.
Shareholders who have received or may receive profit sharing bonuses from Amway Global will continue to have a portion of their profit sharing invested in Activa Value Fund and employees of Amway Global will continue to have the option to invest their retirement assets in the Value Fund.
An investor should consider investment objectives, risks, charges, and expenses carefully before investing. The Prospectus contains this and other information. For more complete information about the Activa Value Fund or to obtain a Prospectus, call (800) 346-2670. Please read the Prospectus.
An investment in the Fund involves risk, including loss of principle.
About ALPS Advisors, Inc.
ALPS Advisors, Inc. ™ is a Denver-based outsourcing solution for administration, compliance, fund accounting, legal, marketing, tax administration, transfer agency and shareholder services for open-end, closed-end, hedge, and exchange-traded funds. ALPS has approximately $18 billion in client mutual fund assets under administration and ALPS Distributors, Inc. provides distribution services to over $220 billion in client assets, as of June 30, 2009. For more information, visit www.alpsinc.com.
ALPS is a registered trademark or trademark of ALPS Fund Services, Inc.™ in the United States and other countries. All other brand names, product names, or trademarks belong to their respective holders.
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