Rockefeller Asset Management, a division of Rockefeller Capital Management, has introduced its first actively managed fixed income ETFs with a trio of funds that aim to capture opportunities across the tax-exempt municipal bond market.
Alex Petrone, Director of Fixed Income at Rockefeller Asset Management.
The funds – the Rockefeller Opportunistic Municipal Bond ETF (RMOP US), Rockefeller California Municipal Bond ETF (RMCA US), and Rockefeller New York Municipal Bond ETF (RMNY US) – have been listed on the NYSE, each with an expense ratio of 0.55%.
RMOP targets a broad range of municipal bonds across the United States, whereas RMCA and RMNY are tailored to bonds issued specifically within California and New York, respectively.
The ETFs are overseen by portfolio managers Scott Cottier, Mark DeMitry, and Michael Camarella. This experienced trio joined Rockefeller in June 2024, transitioning from Invesco, where they previously managed strategies encompassing over $25 billion in assets.
Employing a value-oriented, credit-intensive investment approach, the investment team aims to achieve yield-driven total returns over various market cycles. This strategy capitalizes on market inefficiencies by utilizing a bottom-up method for fundamental credit analysis, which focuses on relative value.
Each fund also strategically explores riskier segments of their respective markets to enhance potential yields. RMOP, for instance, is expected to allocate at least half of its portfolio to bonds rated BBB+ or lower. Similarly, RMCA and RMNY plan to dedicate at least a quarter of their assets to bonds rated BB+ or below.
Commenting on the launch, Alex Petrone, Director of Fixed Income at Rockefeller Asset Management, said: “We are excited about the prospects of higher-yielding municipal bonds as they offer tax-efficient yields and income, alongside historically low correlations with equities. The addition of this seasoned team enhances our capabilities and aligns with our strategy to leverage inefficiencies within the municipal bond market.”
Scott Cottier, Portfolio Manager at Rockefeller Asset Management, added, “High yield municipal bonds are poised to benefit from a favorable fundamental and technical environment. They are a crucial part of a diversified investment portfolio, particularly for high taxpayers. Our team is eager to apply our extensive experience and comprehensive capabilities to unearth opportunities across the credit and duration landscape, aiming to generate alpha through these dynamic, actively managed strategies.”