SOURCE: Hennion & Walsh, Inc.

June 12, 2007 09:55 ET

Hennion & Walsh Asset Management Launches a Trio of SmartGrowth Lipper Funds

Unique Funds-of-ETFs Track Lipper-Created ETF Optimal Target Risk Indices

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:

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

Contact Information

  • Contact:
    Scott Tanner
    Millennium Media Consulting
    Email Contact