PARSIPPANY, NJ--(Marketwire - June 12, 2007) - Hennion & Walsh Asset Management, a registered investment advisor, is pleased to announce the debut of a trio of new funds-of-ETFs, the SmartGrowth Lipper® Funds. These mutual funds help take the guess work out of choosing the right mix of exchange-traded funds ("ETFs") from among the ever-growing universe of ETFs and allow investors a chance to avoid some common pitfalls such as selecting inferior, unproven or inappropriate ETFs and increasing risk through sector or security overlap.
Each fund possesses its own unique risk/reward profile from conservative to moderate to growth, and tracks to an index of ETFs independently created by Lipper, Inc., a leading provider of mutual fund research and subsidiary of Reuters.
The trio of funds includes the SmartGrowth ETF Lipper Optimal Conservative Index Fund, SmartGrowth ETF Lipper Optimal Moderate Index Fund, and the SmartGrowth ETF Lipper Optimal Growth Index Fund. Each fund closely tracks to one of Lipper's proprietary Optimal Target Risk Indices which are composed of objectively identified and carefully selected high quality, liquid ETFs from across the available universe of ETFs that trade on U.S. stock exchanges.
Individual ETFs are chosen from all broad-based, sector and industry-specific domestic equity, international equity, fixed-income, and commodity asset classes. Lipper then determines the optimal ETF allocations for each index with the goal of maximizing return and mitigating risk. All indexes will be rebalanced by Lipper, as necessary, on a quarterly basis.
Hennion & Walsh Asset Management, the Parsippany, NJ-based asset management affiliate of full-service broker/dealer Hennion & Walsh, Inc., is the investment advisor to all three mutual funds. The firm has an exclusive licensing arrangement through which Lipper independently oversees each of the three underlying indices while Hennion & Walsh provides the day-to-day mutual fund management.
"The exchange-traded fund marketplace has become overcrowded to a point of saturation, causing investors and advisors much confusion as to which to choose and how to best incorporate them into portfolios," said Kevin D. Mahn, Chief Investment Officer at Hennion & Walsh Asset Management and portfolio manager for the three funds-of-ETFs. "Lipper's disciplined process of identifying the best-of-breed ETFs allows us to optimize the potential risk and return for each fund. Better still, each of these revolutionary, low cost asset allocation tools is packaged by us in the familiar, easy-to-understand and easy-to-use mutual fund structure, helping investors to better navigate the burgeoning ETF landscape."
The new SmartGrowth Lipper Funds are ideal for use by investors and advisors as core portfolio investments which may then be supplemented with specific satellite investments, or as satellite investments themselves serving to complement or enhance other core security holdings. The funds are also designed to be used for retirement plans including Individual Retirement Accounts.
"Target date mutual funds can give investors a false sense of security as they allocate assets according to a set-in-stone, predetermined formula that assumes that all investors retiring within the same time span have equal resources, goals and needs," said Bill Walsh, President of Hennion & Walsh Asset Management. "By design, our new SmartGrowth Lipper Funds focus on target risk and aren't constrained by artificial asset allocation limitations."
"Lipper's quantitative, objective ETF selection and index construction process will redefine the rules for optimizing the building of diversified investment portfolios," commented Rich Hennion, Executive Vice President of Hennion & Walsh Asset Management.
The funds are now available for purchase directly by investors or through their financial advisors. The minimum initial investment in each fund is $1,000.
About Hennion & Walsh Asset Management
Hennion & Walsh Asset Management is an affiliate of full-service broker/dealer Hennion & Walsh, Inc. Founded by Richard Hennion and William Walsh, Hennion & Walsh, Inc. has been serving clients as a full-service securities firm, specializing in municipal bonds since 1990. The firm has built its reputation on developing strong, mutually beneficial relationships designed to last a lifetime. The firm offers 13 proprietary unit investment trusts under the SmartTrust™ brand, as well as managed money portfolios to both individuals and retirement plans. As of December 31, 2006, the advisor had $170 million in assets under management. Additional information is available at: www.hennionandwalsh.com.
Mutual fund investing involves risk, including loss of principal. There is no guarantee that a Fund will meet its objective. An investor will indirectly bear the operating expenses of the underlying ETFs in which the funds invest.
To determine if a Fund is an appropriate investment for you, carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and other information can be found in the each of the Fund's prospectus, which may be obtained by calling 1-888-465-5722. Please read the prospectus carefully before investing.
The SmartGrowth Lipper Funds are distributed by SEI Investments Distribution Co. which is not affiliated with the Advisor.
To Reporters and Editors: To learn more about any of the SmartGrowth Lipper Funds or to schedule a discussion with portfolio manager Kevin D. Mahn, please contact Scott Tanner, Millennium Media Consulting 703-519-1922 or sctanner33@aol.com.
Hennion and Walsh (http://www.hennionandwalsh.com) responds to the most asked questions from investors and retirement account holders in the midst of what many have described as the worst market conditions since the 1930s, "How do I invest now?" and "Should I be in cash only?" They give investors three must do steps to help them achieve their investment goals while relieving some of their collective fears as expressed through a VIX level that reached 89.53 this month.
The VIX number, often referred to as the "investor fear gauge" is typically 20 or less during less stressful, even complacent, market times. Conversely, a VIX level of 30 or greater is usually associated with a large amount of volatility as a result of investor fear or uncertainty. The history making number of 89.53 reflects vast amounts of volatility, fear and uncertainty that Hennion and Walsh is observing in recent investor questions.
"The questions 'How should I invest now?' and 'Should I put everything in cash?' are the top questions we are hearing from investors," says Bill Walsh, President of Hennion and Walsh. "There is no one simple answer but investment goals, risk reduction and asset allocation are key elements in our response."
"While bank savings accounts, CDs and money markets can help one sleep better at night, they can be terrible long-term assets because they will have trouble keeping pace with inflation over time," continues Walsh. "However, for many investors, the prospect of a slight erosion of value due to inflation seems like a reasonable tradeoff given the drastic losses suffered recently by virtually every stock market around the world. Ultimately, the only way to beat inflation is to accept some degree of risk in exchange for an inflation-beating return. If your goal is to be a long-term investor, being out of the market presents more risks over the long term."
Kevin Mahn, Chief Investment Strategist at Hennion and Walsh Asset Management adds, "There are three steps every investor should take. First, the investor needs to work out his investment goals in a realistic way. These should take into account one's age, dependents, marital status, occupation, and risk tolerance. This helps to determine if the investor needs funds for child education, retirement or a new home, and how much and how long one will need to invest to reach their goals."
"Second, there are roughly 11 types of risks an investor should be aware of: capital risk, selection risk, timing risk, legislation risk, liquidity risk, market (systemic) risk -up or down due to the market as a whole, credit risk, inflationary (purchasing power) risk, interest rate risk, reinvestment risk, and call risk for bond holders. Additionally, one's tax bracket and future tax ramifications of investments should be known and factored into investment planning," continues Mahn.
"Third is working out the asset allocation of one's portfolio, taking into consideration one's investment goals, age, etc. This includes how much should be allocated to cash or cash equivalents, bonds, and stocks. It also includes working out specific strategies that will help protect one's capital and reduce the 11 types of risk listed above while working to achieve one's investment goals. This can be a full time job and if someone doesn't have the time or expertise to devote to this, they should find a knowledgeable professional they trust to work with," concludes Mahn.
Currently, oil prices are down, a new President-Elect appears dedicated to addressing the economy as a top priority, and the VIX is falling which may give investors a small ray of light on the horizon. However, this is not the time to relax. It is more important than ever for investors to take the above three steps to ensure their portfolios are set up to take advantage of future market conditions while meeting their investment goals in a diversified and strategic manner.
Media Contact: Melinda Staab JC PR, Inc. 1055 Parsippany Boulevard Suite 304 Parsippany, NJ 07054 (973) 732-3521 - Office Melinda@jcpublicrelations.com
About Hennion and Walsh
Hennion and Walsh was founded in 1990 by Richard Hennion and Bill Walsh, with a single goal in mind: to become the nation's premier provider of investment services to and advocate for individual investors. As such, a disciplined, personalized approach has helped thousands of individuals grow and protect their investments. Hennion & Walsh's heritage is being one of the nation's leading independent specialists in municipal bonds, for individual investors, as will as offering a full suite of equity and fixed-income products and services including asset management.
Hennion & Walsh was founded in 1990 with a single goal in mind: to become the nation’s premier provider of investment services to and advocate for individual investors. As such, our disciplined, personalized approach has helped thousands of individuals grow and protect their investments. Hennion & Walsh’s heritage is being one of the nation’s leading independent specialists in municipal bonds for individual investors, but we offer a full suite of equity and fixed-income products and services including wealth management.
Philosophy At Hennion & Walsh , we believe it is both our responsibility and our privilege to help our clients prepare for a secure financial future. We are constantly building and strengthening long-term client relationships through our integrity, trustworthiness, and personal service. Our goal is to be the nation’s premier investment advisor to and advocate for individual investors, providing every investor the institutional-quality care to which we believe they’re entitled.
Founder’s Note We tend to consider wealth not as an end in itself, but as a means to an end: freedom; the reward for years of hard work; the power to embrace life’s full potential. All too often, however, wealth becomes not a thing to be enjoyed but a burden to be worried over. People fear losing what they have worked so hard to build, but they lack the specialized knowledge, resources, and most importantly, the time to properly manage it.
It’s no wonder that many people turn to professionals to help guide, manage, defend, and grow their investments. The question is to whom they should give this responsibility.
At Hennion & Walsh, we believe that the management of wealth should be taken as personally as its accumulation. We recognize the commitment our clients have made to building and maintaining their investments. And knowing this, how could we not manage and protect those investments as carefully – and as personally – as we can? When this company was founded, we recognized that individual investors didn’t always experience the same benefits, the same access to resources, and the same level of service that institutional investors enjoyed at other firms. We set out to change that. And over the many years since its inception, Hennion & Walsh has always been its clients’ fiercest champion and most passionate advocate. We promise that you will experience nothing less.
This section outlines our unique approach to investing, the strategies and philosophy behind it, and the reasons we believe your investment will have a prosperous home with Hennion & Walsh.
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Hennion and Walsh (http://www.hennionandwalsh.com) worked overtime to bring the Christmas celebration of a lifetime to 35 underprivileged Morris County children, ages 5 to 12. Over 80 executives and staff, including Hennion and Walsh partners Bill Walsh and Richard Hennion, participated in the preparations and event day activities to make this season a special one for all the children involved.
The Christmas celebration donated by Hennion and Walsh included a traditional turkey and ham Christmas dinner with all of the trimmings. The program for the day included Christmas caroling, arts and crafts activities, and the reading of Christmas poems and stories.
The children eagerly unwrapped loads of toys and gifts brought by Santa in answer to their Christmas wish lists. Additionally, to help with the more practical side of life, each child received shoes, socks, scarves and gloves from their friends at Hennion and Walsh.
“The event was tremendous and everyone present, both young and old, experienced the happiness and joy of the season,” said Bill Walsh, President of Hennion and Walsh. “As a Firm, we pride ourselves in the work that we do with individuals, and coming together to work for these young individuals, bringing smiles to their faces, is some of most gratifying work we do all year long.”
The Hennion and Walsh event brought such happiness and joy to these children and their families that it was featured on the front page of Morris County newspaper, The Neighbor News.
Hennion and Walsh was founded in 1990 by Richard Hennion and Bill Walsh, with a single goal in mind: to become the nation’s premier provider of investment services and advocate for individual investors. As such, a disciplined, personalized approach has helped thousands of individuals grow and protect their investments. Hennion and Walsh’s heritage is being one of the nation’s leading independent specialists in municipal bonds for individual investors, as well as offering a full suite of equity and fixed-income products and services, including asset management. For more information, visit http://www.hennionandwalsh.com or call (800) 836-8240.
PARSIPPANY, N.J. -- Hennion and Walsh is pleased to announce the introduction of its SmartTrust[TM] Diversified Dividend Trust (2007 Series A), a unit investment trust (UIT) whose objective is to provide investors with the potential for capital appreciation and current dividend income.
The portfolio of The SmartTrust Diversified Dividend Trust (2007 Series A), which came to market on May 10, 2007, invests in the common stock of a diversified group of 19 closed-end investment companies from among 13 investment managers each with its own disciplined investment strategy. These individual closed-end funds were carefully chosen by Hennion & Walsh for their quality management, high liquidity, current low levels of leverage, and distribution history, a large portion of which may qualify for a Federal Tax Rate of 15%. In addition, the closed-end funds in the portfolio overall have not been trading at a significant premium on a weighted basis.
"The SmartTrust Diversified Dividend Trust, like other UITs we have sponsored and that investors have wholeheartedly embraced, offers many of the features that demanding investors and their advisors want built in to investment products today," said Bill Walsh, President of Hennion & Walsh. "Specifically, they desire portfolio transparency, the option of reinvesting or receiving their dividends in cash, a predictable predetermined maturity date, and the potential opportunity to roll the assets at maturity into a succeeding investment trust, if one is offered, at a reduced sales charge," he added.
"In addition, The SmartTrust Diversified Dividend Trust allows investors to tap into the investment prowess of a variety of extremely talented and very successful investment firms and their managers, all in one, easy-to-access portfolio that we have assembled," added Rich Hennion, Executive Vice President of Hennion & Walsh. Included in this SmartTrust UIT are closed-end funds from Allianz Global Investors Fund Management, Alpine Woods Capital Investors, Alps Advisers, BlackRock Advisors, Calamos Advisors, Eaton Vance Management, Evergreen Investments, ING Investments, IQ Investment Advisors, Legg Mason, Morgan Keegan, Nuveen Asset Management, and Pioneer Investments.
Hennion and Walsh's newest SmartTrust Diversified Dividend Trust offers access to a diversified portfolio structured so that approximately 85% of assets are invested in closed-end funds that currently focus on different areas of the domestic equity and/or global equity and real estate markets, while approximately 15% of the remaining portfolio invests in those closed-end funds which currently employ fixed-income oriented strategies.
"The change in the taxation policy on dividends, coupled with investors' growing appetite for dividend-generating investments, has facilitated Hennion & Walsh's development of an appealing investment vehicle that can help to provide for an attractive total return," said Kevin D. Mahn, Chief Investment Officer at Hennion & Walsh Asset Management, the Portfolio Supervisor for the Trust. "By investing across a mix of diversified closed-end funds with an emphasis on generating dividends and the opportunity for capital appreciation, we hope to achieve returns for investors that have the potential to mimic pure-equity returns." Consequently, the SmartTrust Diversified Dividend Trust could be an appropriate investment vehicle for qualified retirement plans including IRAs.
The SmartTrust Diversified Dividend Trust is being offered now through August 10, 2007 and has a two-year term which will end on/about May 12, 2009. Dividends are expected to be paid monthly, with the first dividend payment due on June 29, 2007 to shareholders of record as of June 15, 2007.
Hennion and Walsh, Inc., a full-service broker/dealer, serves as the sponsor and underwriter of this UIT. Hennion & Walsh Asset Management, an affiliated company, serves as the portfolio supervisor.
About Hennion & Walsh
Hennion and Walsh, Inc., Member NASD, SIPC, was founded by Richard Hennion and William Walsh and has been serving clients as a full-service securities firm, specializing in municipal bonds since 1990. The firm has built its reputation on developing strong, mutually beneficial relationships designed to last a lifetime.
Hennion and Walsh offers 13 proprietary unit investment trusts under the SmartTrust[TM] brand, as well as managed money portfolios to both individuals and retirement plans. Hennion & Walsh Asset Management Company serves as the investment advisor to three mutual funds under the SmartGrowth Lipper Funds name. These funds track to Lipper's proprietarily-created optimal indices comprised of Exchange Traded Funds ("ETFs"). Additional information is available at: www.hennionandwalsh.com.
An investor can lose money by investing in this Trust. The Trust is not actively managed and will not sell securities in response to ordinary market fluctuations. There is no guarantee that the Trust will meet its investment objectives, that the stocks comprising the portfolio will pay dividends, or that the unit price will not decline. Past performance is not a guarantee of future results.
