EQ/High Yield Bond Portfolio to launch with two share classes

By Toni Weeks

San Diego, April 25 - EQ Advisors Trust said it will offer a new portfolio that focuses on investments in high-yield bonds. According to an N-1A filing with the Securities and Exchange Commission, the EQ/High Yield Bond Portfolio will launch with class IB and class K shares. Ticker symbols have not yet been released.

The fund will seek to maximize current income by investing, under normal circumstances, at least 80% of its net assets, plus borrowings for investment purposes, in high-yield bonds, including corporate bonds, bank loans, municipal bonds, mortgage-backed and asset-backed securities, convertible securities and preferred stocks.

At least 25% of the portfolio's assets will be invested in bank loans.

The portfolio's assets will be allocated among two portions, with about 30% passively managed by investing in exchange-traded funds and about 70% of the assets actively managed.

The adviser to the active allocated portion will use credit analysis and relative value across and within each sector of the high-yield and bank loans markets, while the adviser to the ETF allocated portion will generally invest in the iShares iBoxx $ High Yield Corporate Bond Fund and the SPDR Barclays High Yield Bond ETF.

Kenneth T. Kozlowski, Alwi Chan and Xavier Poutas will comprise the portfolio management team under FMG LLC, the portfolio's investment manager. Jeffrey B. Abrams and Kevin H. Gundersen will make up the active allocation portfolio management team under Guggenheim Investment Management, LLC, the portfolio's investment adviser. Both the manager and the adviser are based in New York.

There will be no shareholder fees. Management fees are 0.6%. Including other fees and expenses, the total annual portfolio operating expenses are expected to be 1.32% for class IB and 1.07% for class K shares.

The portfolio's shares will be sold only to some insurance company separate accounts, other tax-qualified retirement plans, other portfolios managed by FMG that currently sell their shares to such accounts and plans and other investors eligible under applicable tax regulations.

Class K shares are sold only to other portfolios of the trusts, portfolios of AXA Premier VIP Trust and some annuity and retirement plans.

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