PARSIPPANY, N.J., December 17, 2014 /PRNewswire/ — Hennion & Walsh, a provider of investment services and an advocate for individual investors, today announced the launch of its SmartTrust® Closed-End Fund Advisors Select BDC Trust, further expanding its suite of proprietary SmartTrust® Unit Investment Trust (UIT) portfolios. Developed in partnership with Closed-End Fund Advisors (CEFA), a registered investment advisory firm led by John Cole Scott that specializes in closed-end funds, the Trust seeks to provide investors with total return potential through a combination of current income and capital appreciation.
“As investors today continue to search for alternative sources of income, BDCs can be an option worthy of consideration with attractive total return potential,” said Kevin Mahn, Chief Investment Officer of SmartTrust®. “The Closed-End Fund Advisors Select BDC Trust is the first BDC offering from SmartTrust®, and with CEFA’s expertise in the space and support as a portfolio consultant, we are confident that advisors and clients will realize the potential of this new strategy.”
The two-year Trust seeks to achieve its objective by investing in the publicly traded common stock of closed-end investment companies that have elected to be treated as business development companies (BDCs). Under the Investment Company Act of 1940, BDCs are publicly traded closed-end funds that make investments in private, or in some cases public companies, typically with lower trading volumes, designed to facilitate capital formation for small and middle-market companies.
“BDCs have the potential to perform well when interest rates rise,” said Bill Walsh, Chief Executive Officer of Hennion & Walsh. “With the Fed poised to take rate action in the near term, we believe this is the perfect time to bring a BDC offering to market as a complement to other traditional fixed income investments.”
SmartTrust® UITs offer diversified income and total return opportunities through innovative investment strategies. Assets grew by 27 percent year to date in 2014 while the number of Trusts outstanding grew by more than 38 percent over the same period. For more information about Hennion & Walsh’s SmartTrust® UIT products, please contact the firm’s Internal Support Desk at 888-505-2872, or visit www.smarttrustuit.com
About Hennion & Walsh
Hennion & Walsh, a full service brokerage firm specializing in municipal bonds, was founded in 1990 by Richard Hennion and Bill Walsh. Their mission is to be the individual investor’s fiercest and most passionate advocate. Investment guides, webinars, seminars and online content are just some of the ways they help investors become better informed and make better investment decisions. The firm has built its reputation on developing strong, mutually beneficial relationships designed to last a lifetime, serving over 15,000 clients with brokerage accounts and managed portfolios. They are committed to providing individual investors with the institutional-quality service and guidance they believe they are entitled to. Additional information on Hennion & Walsh is available at www.hennionandwalsh.com.
About Closed-End Fund Advisors
Closed-End Fund Advisors (CEFA), based in Richmond, VA is a 25 year-old privately held Registered Investment Advisory firm specializing in closed-end fund research and trading since 1989.The firm publishes The Scott Letter: Closed-End Fund Report containing in-depth portfolio manager interviews. CEFA manages eight discretionary portfolio strategies with varying options for investors seeking to experience both growth and regular income. The firm offers; a comprehensive weekly “CEF Universe” data service, a monthly “Best Ideas List” and a daily “News and SEC Filing Alert” service covering all US listed CEFs and BDCs. They can work as a fractional CEF analyst on a one-time or ongoing basis and as a sub-advisor. CEFA blends a strong fundamental analysis while seeking to exploit the repeatable alpha inherent to the structure of a closed-end fund. Additional information about CEFA is available at www.CEFadvisors.com.
SOURCE Hennion & Walsh