MutualFundWire.com: A Year Post-Sale, a $10B-AUM Boutique Enters the ETF Biz

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Monday, December 19, 2022

A Year Post-Sale, a $10B-AUM Boutique Enters the ETF Biz

The team at a $10.2-billion-AUM (as of September 30) boutique is powering their first ETF, about a year after selling to a publicly traded multiboutique.

George Robert Aylward
Virtus Investment Partners, Inc.
President, CEO

Today, James Craige, co-chief investment officer and head of emerging markets at Stone Harbor Investment Partners, and Bill Smalley, managing director of Virtus Investment Partners, Inc.'s Virtus ETF Solutions [profile], unveil the launch of the Virtus Stone Harbor Emerging Markets High Yield Bond ETF (VEMY on the NYSE Arca, Inc.). The new fund is a series of Virtus ETF Trust II.

VEMY's inception date was last Monday, December 12, and as of December 16 it had $3.746 million in AUM. The actively managed fund comes with an expense ratio of 55 basis points.

Virtus ETF Advisers LLC serves as VEMY's investment advisor, and Virtus Fixed Income Advisers LLC (VFIA), through its Stone Harbor division, serves as subadvisor. (Virtus bought Stone Harbor almost a year ago.) The new fund's PM includes four Stone Harbor folks: Darin Batchman, portfolio manager for emerging markets corporate debt, Latin America; Richard Lange, portfolio manager for emerging markets corporate debt, Asia, Euro high yield; Stuart Sclater-Booth, portfolio manager for emerging markets debit, global sovereign, asset allocation; and Craige himself. Virtus ETF Solutions serves as the fund's administrator, and VP Distributors serves as distributor.

"For investors who are seeking an alternative income-opportunity adding emerging markets debt can provide the opportunity for a significantly attractive yield pickup, even when compared to U.S. high yield fixed income, where many investors have recently sought out incremental yield," Craige states, putting the launch in the context of the Stone Harbor team's prediction of "a faster economic recovery and prolonged growth coming."

Smalley, for his part, lauds the Stone Harbor team for their experience "allocating risk in complex areas of fixed income markets."

VEMY's other service providers included: Bank of New York Mellon (BNY Mellon) as accounting services administrator, custodian, dividend paying agent, and transfer agent; PricewaterhouseCoopers LLP as independent accounting firm; and Stradley Ronon Stevens & Young LLP as counsel.

Printed from: MFWire.com/story.asp?s=65283

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