Overview
Investment Objective
The Advent Convertible Bond ETF (ACVT) is an enhanced fixed income solution designed to deliver total return through a combination of income and capital appreciation. The fund invests in convertible securities with a lower delta, generally meaning reduced sensitivity to equity market movements. ACVT serves as a differentiated strategy that complements the defensive portion of a portfolio, designed to offer a balance of income generation, capital growth potential, and wealth preservation.
Investment Philosophy
Defensive, Credit-First Approach
ACVT follows a defensive investment strategy rooted in bottom-up fundamental analysis. The portfolio focuses on identifying securities with the potential for positive asymmetry, those that may offer limited downside relative to the broader convertible market while maintaining the ability to participate in the underlying equity upside.
Growth & Income with a Value Bias
ACVT utilizes a growth and income strategy with a distinct value orientation. The fund targets securities from companies and sectors that are temporarily out of favor, where both equity and bond valuations appear attractive. The objective is to capitalize on mispriced opportunities with strong recovery potential.
Where can ACVT Fit?
Within Fixed Income allocations
ACVT serves as an enhanced fixed income solution that can help lower overall portfolio risk while maintaining or potentially improving total return potential. It offers a differentiated approach compared to traditional core bond strategies.
As part of Equity allocations
Given its potential to participate in equity upside while mitigating downside risk, ACVT can also function as a defensive, de-risking solution within equity allocations. It seeks to provide equity-like return potential with a more conservative risk profile.
Why Advent?
Dedicated Credit Specialists that have been a market leader in the convertible asset class since 1995
Credit Driven Research Process from one of the largest teams of investment professionals dedicated to the convertible asset class
One of the largest investment platforms in the world that emphasizes convertibles as an asset class
Convertible Security Dynamics
What is a Convertible Security?
Structured as a fixed-income instrument, the convertible security can be a corporate bond or preferred stock with the added feature of an embedded option that allows the holder to convert the security into a preset number of common shares of the issuer. The hybrid nature of these securities combine both equity and debt features, allowing the investor the potential to participate in equity price appreciation, while benefiting from income and downside support, generally provided by the debt feature. This favorable upside/downside capture of equity market movements creates an attractive characteristic called positive asymmetry.
Corporate Bond
or Preferred
Stock
+
Embedded
Option
=
Convertible Security
What Makes a Convertible Structure Attractive?
Distressed
Bond Like
Balanced
Equity Surrogate
One of the benefits of holding convertible securities is that they offer the potential for upside participation when the stock market rises. They also offer a bond floor, which is the minimum value that the bond should trade for, equivalent to the present value of future cash flows if the conversion option is not exercised. A bond floor can help investors protect their investments against downside risk (See the black Bond Value (Bond Floor) line).
If the convertible security is out of the money, it behaves like a conventional corporate bond, where changes in interest rates and credit quality may have a much greater influence on pricing. However, a convertible bondholder has the right, but not the obligation, to convert the bond into shares of common stock. Therefore, in an extended negative market environment, the right to convert will not be exercised, and the bond will be repaid at the par value. ACVT focuses on out-of-favor convertible securities trading close to their Bond Value (bond floor), exhibiting strong recovery potential with defensive characteristics provided by the debt feature.
Source: Advent Capital Management, LLC. This chart is for illustrative purposes only and is not intended to represent the performance of any specific product or holding.
Fund Details and Pricing
Fund Details
(As of 4/30/2025)
| Detail | Value |
|---|---|
| Ticker | ACVT |
| NAV | $25.06 |
| Market | $25.06 |
| Premium/Discount | -0.03% |
| Exchange | NYSE Arca, Inc. |
| Inception Date | 4/30/2025 |
30 Day
Median Bid/Ask
(As of 4/30/2025)
| 30 Day Median Bid/Ask |
|---|
| - |
| Premium/Discount | (As of -) |
|---|
| Days at premium |
| Days at NAV |
| Days at discount |
Performance
Annualized Total Returns (%)
(As of 4/30/2025 4/30/2025)
| 1M | YTD | 1YR | Since Inception | |
|---|---|---|---|---|
| ACVT NAV | - | - | - | - |
| ACVT MKT | - | - | - | - |
| ICE BofA All Yield Alternatives US Convertible Index | - | - | - | - |
| Bloomberg US Aggregate Index | - | - | - | - |
| QTD | YTD | 1YR | Since Inception | |
|---|---|---|---|---|
| ACVT NAV | - | - | - | - |
| ACVT MKT | - | - | - | - |
| ICE BofA All Yield Alternatives US Convertible Index | - | - | - | - |
| Bloomberg US Aggregate Index | - | - | - | - |
Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Return periods greater than one year are annualized.
ICE BofA All Yield Alternatives U.S. Convertible Index: This index is a subset of the ICE BofA US Convertible Index (the “Parent Index”) and measures the performance of U.S. convertible securities with a delta less than 0.4. The Parent Index measures the performance of the U.S. dollar denominated market for convertible securities of U.S. companies.
Bloomberg U.S. Aggregate Index: This index is a broad-based benchmark that measures the investment grade, U.S. dollar- denominated, fixed-rate taxable bond market.
Portfolio
Top 10 Holdings
(As of 4/30/2025)
| Security Name | Ticker | CUSIP | Face Value | Market Value | Weight % |
|---|
Subject to Change
Fund holdings and/or sector allocations are subject to change.
Fund Facts
(As of 4/30/2025)
| Name | Fund |
|---|---|
| Net Assets | $501,250 |
| Number of Holdings | - |
| Weighted Average Price | - |
| Duration | - |
| Delta | - |
| Median Conversion Premium | - |
| Investment Premium | - |
Duration is a measurement of a bond's interest rate risk that considers a bond's maturity, yield, coupon, and call features. The maturity date refers to the moment in time when the principal of a fixed income instrument must be repaid to an investor.
Delta is a measure of a convertible security’s sensitivity to movements in its underlying stock price. Higher deltas indicate greater equity sensitivity.
Conversion premium is the amount by which the market price of a convertible security exceeds the conversion value, expressed as a percentage. It is a gauge of equity participation.
Investment premium is the amount that the market price of the convertible security is above its investment value, expressed as a percentage. It is a gauge of equity participation.
Credit Quality of Bonds
(As of 4/30/2025)
| Class | % |
|---|---|
| AAA | - |
| AA | - |
| A | - |
| BBB | - |
| BB | - |
| B | - |
| CCC and below | - |
| Unrated Securities | - |
Quality ratings reflect the credit quality of the underlying securities in the fund's portfolio and not that of the fund itself. Quality ratings are subject to change. Standard & Poor’s (S&P) assigns a rating of AAA as the highest to D as the lowest credit quality rating.
Maturity Schedule
(As of 4/30/2025)
| Range | % |
|---|---|
| < 1 Year | - |
| 1 to 5 Years | - |
| 5 to 10 Years | - |
| 10 to 20 Years | - |
| 20 to 30 Years | - |
| > 30 Years | - |
| Equities and Other | - |
Yield
(As of 4/30/2025)
| Name | % |
|---|---|
| 12-Month Distribution Yield (As of 4/30/2025) |
- |
| 30-day SEC yield (As of 4/30/2025) |
- |
| Unsubsidized 30-Day SEC yield (As of 4/30/2025) |
- |
| Yield to Maturity (As of 4/30/2025) |
- |
12-Month Distribution Yield: The sum of a fund's total trailing 12-month interest and dividend payments divided by the most recent day's ending share price (NAV).
30-Day SEC Yield: Reflects the dividends and interest earned by the Fund during the 30-day period ended as of the date stated above after deducting the Fund's expenses for that same period.
30-Day Unsubsidized Yield: Represents net investment income earned by a fund over a 30-day period, expressed as an annual percentage rate based on the fund's share price at the end of the 30-day period. Unsubsidized yield does not adjust for any fee waivers and/or expense reimbursements in effect.
Yield to Maturity: The internal rate of return of a security based on the given market price. It is the discount rate that equates a security price (including accrued interest) with its projected cash flow.
Sector
(As of 4/30/2025)
| Sector | % Of Assets | Index |
|---|
Distributions
Distributions
Schedule: Monthly
| Frequency | Income |
|---|
Total Capital Gains
Schedule: Annual
| Year | Capital Gains |
|---|
Fees and Expenses
Fund Information
| Name | Fund |
|---|---|
| Inception Date | 4/30/2025 |
| Ticker | ACVT |
| CUSIP number | 75526L845 |
Fees
| Expense | % |
|---|---|
| Total (Gross) | 0.80 |
| Total (Net) | 0.65 |
Advent Capital Management, LLC (the “Adviser”) has contractually agreed to waive its advisory fee and/or reimburse expenses in order to limit Total Annual Fund Operating Expenses to 0.65% of the Fund’s average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account and could cause Total Annual Fund Operating Expenses after Fee Waivers and/or Expense Reimbursement to exceed 0.65%, as applicable: acquired fund fees and expenses, if any, brokerage commissions, extraordinary items, interest, and taxes. These contractual limitations are in effect until April 30, 2026, and may not be terminated prior to that date without the approval of the Board of Trustees (the “Board”) of The RBB Fund Trust (the “Trust”).
