Ivy launches high-yield fund with interest rate hedging via ProShares

By Susanna Moon

Chicago, April 26 – Ivy Investment Management Co. said it added a high-yield index fund to its lineup of five more mutual funds with ProShares as a sub-adviser.

The Ivy ProShares Interest Rate Hedged High Yield index fund is benchmarked to the Citi High Yield (Treasury Rate-Hedged) index.

The fund invests in a diversified portfolio of high-yield bonds with an interest-rate hedge using short Treasury futures to minimize the effects of rising rates, according to a company announcement.

The fund is offered by Ivy Distributors, Inc. and will be available through an advisory platform offered by Waddell & Reed, Inc., as well as through unaffiliated distribution, the release noted.

“Offering active and passive investment styles helps financial advisors bring strategic flexibility to the planning process when building client portfolios,” Thomas W. Butch, chief executive officer of Ivy Distributors, Inc., said in the press release.

“These new products allow us to pair a highly experienced index fund manager with our skilled in-house Ivy investment management team, whose focus of course is on active management.”

Ivy is based in Overland Park, Kan.

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