1. FOR IMMEDIATE RELEASE
Contact | Morrison Shafroth | CSG/PR | (720) 470-3653
GRAIL ADVISORS BRINGING FIXED INCOME TO ACTIVELY-MANAGED ETF MARKETPLACE
Two New Bond Funds Will Feature Strategic Partnership With McDonnell Investment Management
SAN FRANCISCO – October 5, 2009 – Grail Advisors, an firm based in suburban Chicago. The firm manages approximate-
innovator in the development and distribution of active-managed ly $13 billion in assets for institutions, private clients, mutual fund
exchange traded funds (ETFs), today announced the registration of companies, and private investment funds across the U.S., Europe,
two new actively-managed fixed-income ETFs—Grail McDonnell and Asia. McDonnell is 100% owned by its employees and is an
Intermediate Municipal Bond ETF and Grail McDonnell Core Taxable SEC-registered investment adviser.
Bond ETF. Grail McDonnell Intermediate Municipal Bond ETF Objective: High
McDonnell Investment Management, LLC (McDonnell), a Chicago- level of current tax-exempt income and higher risk-adjusted returns
based fixed-income specialist responsible for more than $13 billion relative to its benchmark.
assets1 under management, will serve as the sub-adviser to both of
the funds. Grail Advisors will serve as the funds’ manager. Grail McDonnell Core Taxable Bond ETF Objective: High level of current
income and higher risk-adjusted returns relative to its benchmark.
Similar to traditional actively-managed bond funds, the new Grail Mc-
Donnell offerings will allow portfolio managers unrestricted trading.
As of 9/30/09.
“Our stated goal has been to bring a full lineup of traditional, active
Ordinary brokerage fees apply.
fund managers and strategies to the ETF marketplace,” said William 3
Exchange trading of ETFs further enhances their tax efficiency. Inves-
M. Thomas, CEO of Grail Advisors LLC. “These new fixed-income tors who want to liquidate shares in an ETF simply sell them to other
ETFs, both very important additions to our actively-managed list, investors through exchange trading. Because of this unique structure,
are made even more compelling by the skill and experience of ETFs are not required to sell securities to meet investor cash re-
McDonnell Investment Management.” demptions, potentially generating capital gains tax liability for remain-
McDonnell specializes in fixed-income investment management, of- ing investors. Keep in mind that the sale of an ETF will generate capital
fering both investment-grade taxable and tax-exempt strategies and gains/losses for the investor liquidating shares.
below investment-grade strategies using separate accounts, struc- 4
ETFs are considered transparent because their portfolio holdings
tured products, and other private investment vehicles. Investment are disclosed daily.
mandates include core, limited maturity/duration, multi-sector, cus-
tomized benchmark blends, and below investment-grade credit. The William M.Thomas is a registered representative of ALPS Distributors, Inc.
firm is wholly-owned by a team of professionals who were instru- Shares are not individually redeemable and the owners
mental in developing the separate account management business in
1987, when the group operated as part of Van Kampen Investments.
of Shares may purchase or redeem Shares from a Fund in
McDonnell was formed as an independently-owned, registered in- Creation Units only.
vestment advisor in 2001. There are risks involved with investing including possible loss of principal.
“We recognize that the investment demands of the marketplace are The ETFs will be actively managed and the Shares may trade above or
shifting in response to today’s market environment,” said Edward below their net asset value.The trading price of Shares may deviate signifi-
Treichel, President and CEO of McDonnell. “We stand poised with cantly from net asset value during periods of market volatility. Shares will
Grail Advisors to respond with client-tailored investment solutions like not be FDIC insured, may lose value, and will have no bank guarantee.
these new Grail McDonnell ETFs.” An investor should consider investment objectives, risks,
Grail Advisors rolled out the market’s first true, actively-managed eq- charges, and expenses carefully before investing. The
uity ETF in May—the Grail American Beacon Large Cap Value ETF Prospectus contains this and other information. For more
(NYSE: GVT). That fund was designed to incorporate traditional complete information about the Grail McDonnell ETFs and
investment management approach and a multi-manager format into the Grail American Beacon Large Cap Value ETF or to obtain
an active ETF structure. The Grail McDonnell offerings will combine a Prospectus, call 415-677-5870. Please read the Prospectus
all the benefits of an ETF structure—lower costs2, tax efficiency3, trans- carefully before investing.
parency of holdings4, and intra-day trading—with actively-managed The information in the Prospectus is not complete and may be
strategies from a veteran fixed-income management team.
changed.The Grail McDonnell ETFs may not sell their Shares
San Francisco-based Grail Advisors intends to increasingly make the until the registration statement filed with the Securities and
benefits of ETFs available to the large pool of investors who currently Exchange Commission is effective. The Prospectus is not an
select traditional mutual funds or other vehicles to access active port- offer to sell the ETFs’ Shares, and the ETFs are not soliciting
folio management. Mr. Thomas says Grail Advisors is currently in an offer to buy their Shares in any jurisdiction where the offer
discussions with a number of leading financial institutions and asset or sale is permitted.
managers, and expects to launch a number of customized, actively-
managed ETFs that will provide full, daily disclosure on all holdings. The Grail McDonnell ETFs are new and have no operating history.
About Grail Advisors LLC - Grail Advisors LLC, an innovator in the The Grail American Beacon Large Cap Value ETF is new and has limited
creation and distribution of actively managed Exchange Traded operating history.
Funds, partners with established asset managers, distributors, and ALPS Distributors, Inc. is not affiliated with the mentioned entities –
related financial institutions to design and deliver actively managed McDonnell Investment Management, LLC and Van Kampen Investments.
ETFs. Grail Advisors was created to deliver ETFs using fully disclosed
active portfolio management to the global investment community. Grail McDonnell Intermediate Municipal Bond ETF, Grail McDonnell Core
More information is available at www.grailadvisors.com. Taxable Bond ETF, and Grail American Beacon Large Cap Value ETF are
distributed by ALPS Distributors, Inc. ###
About McDonnell Investment Management, LLC - McDonnell Invest-
ment Management, LLC is a private fixed-income asset management GRL000145 | EXP 09/30/10