On June 12, 2023, financial news across the world rummages over the latest filing of Kingsview Wealth Management LLC and their purchase of shares in the First Trust Managed Municipal ETF (NASDAQ:FMB). The SEC’s most recent 13F filing reveals that this institutional investor procured 4,848 shares in FMB with an estimated value of $243,000 during the fourth quarter of last year.
Kingsview is known for its extensive portfolio management services with a specialized focus on providing advice to high net worth individuals and institutions. With such a high management priority enlisted by the firm, it is no surprise that they have evinced interest in FMB – notable for its strategic investment approach to managing municipal bond exposure.
But who else has invested in this relatively unheard-of ETF? Investors and market analysts alike are turning to HoldingsChannel.com for their latest updates on all insider trades and holdings of hedge funds involving FMB.
The interest garnered by FMB comes at a time when there is speculation over cuts in corporate tax rates by governments worldwide, which could dampen demand for municipal bonds. Despite this, what lends buoyancy to investors’ confidence in this fund is its recently declared monthly dividend payout which was made on May 31st. Shareholders who had invested prior to May 24th received a dividend payment of $0.1275 per share.
This generous dividend payment translates to an annualized yield of over three percent as shareholders stand to earn around $1.53 annually through dividends alone. However, it should be noted that the ex-dividend date was on May 23rd which means that investors who purchased shares after this date will not receive any dividends until next quarter.
As economic climates continue to sway with political uncertainties both within respective countries and internationally, astute investors will always have a keen eye out for stocks and ETFs with strong potential but also embody inherent diversification. First Trust Managed Municipal ETF offers such an avenue for investors and with the backing of a firm like Kingsview Wealth Management, it is poised to carry on garnering interest in the future.
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First Trust Managed Municipal ETF (FMB): A Promising Investment Opportunity for Institutional Investors
The investment landscape can seem like a maze to those who are not well-versed in the industry. With myriad funds, stocks, and bonds available for investment, it can be challenging to understand where to put your money and how much risk you’re willing to tolerate. One such fund that investors should pay attention to is the First Trust Managed Municipal ETF (FMB).
Recently, several institutional investors and hedge funds have upped their stakes in the FMB, indicating that they see promise in this actively managed ETF. Belpointe Asset Management LLC increased its stake by 14.9%, while Wells Fargo & Company MN raised its holdings by 15.7%. Stratos Wealth Advisors LLC and Commonwealth Equity Services LLC also increased their positions in the FMB.
Moreover, Financial Advocates Investment Management boosted its holdings by 35.9% during the third quarter of 2022. This reflects a growing trend of institutions investing more actively into municipal bonds via ETFs instead of buying directly from issuers.
At present, FMB has a year-low of $48.07 and a year-high of $52.00 with its current trading price at $50.47 on June 12th, 2023. The fund invests mainly in investment-grade fixed income securities backed by municipal bonds with some exposure to high-yield municipal bonds.
Launched on May 13th, 2014 under the management of First Trust Fund Managers LLC., FMB seeks high current income exempt from regular federal income tax while preserving capital alongside long-term growth prospects.
As we move deeper into the new decade, investments that promote sustainable and responsible growth will likely become even more important for both our financial system and our environment as well as social equity goals.
As investors become more interested in avoiding risks associated with environmentally or socially unfavorable projects/stocks/bonds ; such exchange-traded funds like FMB will continue to gain traction especially because they can help investors achieve better diversification in their portfolio while addressing the increasingly important environmental, social and governance (ESG) criteria.