Staff statement regarding the risk legend used by non-transparent exchange-traded funds operating in reliance of an exemptive order under the Investment Company Act of 1940

Division of Investment Management Staff To date, the Commission has granted exemptive relief to a number of sponsors to operate actively managed ETFs that do not provide daily portfolio transparency (non-transparent ETFs). Under the terms of its exemptive relief, each non-transparent ETF uses in its prospectus, fund website and any...

SEC Staff Clarifies Position on Disaggregation for Section 13(d) and 16(a) Reporting by Certain ETF Authorized Participants

The SEC’s Division of Corporation Finance recently posted new compliance and disclosure interpretations concluding that any registered broker-dealer acting as an authorized participant (AP) for any ActiveShares exchange-traded fund (ETF) may rely on the Commission’s disaggregation guidance to separately report ownership of securities acquired in a confidential brokerage account (Confidential...

GAMCO Investors to Offer Gabelli Financial Services Opportunities ETF (GABF)

GREENWICH, Conn.--(BUSINESS WIRE)--GAMCO Investors, Inc. (“GAMCO”) (NYSE: GBL) will launch Gabelli Financial Services Opportunities ETF (NYSE: GABF), on or around May 10, 2022. GAMCO will offer a “loyalty” program under which the first $25 million of the Fund’s assets under management will incur no fees and expenses. GABF’s investment objective...

First Manhattan Co. Launches Inaugural Actively Managed ETF – FMC Excelsior Focus Equity ETF (Ticker: FMCX)

FMCX Seeks to Comprise a High-Conviction Portfolio from a Firm with Decades-Long Investing Experience FMCX’s Strategy Mirrors First Manhattan’s Fundamentals-Based, Research-Intensive Approach Across Sectors First Manhattan Pursues Impactful Engagement with Management Teams on Long-Term Strategy, Growth, and Governance NEW YORK - (BUSINESS WIRE) - First Manhattan Co. (“First Manhattan”), an...

DoubleLine Launches Its Own ETFs

DoubleLine Capital, an investment manager with $134 billion in assets under management founded by Jeffrey Gundlach, entered the ETF space today with two very different actively managed funds, the DoubleLine Shiller CAPE U.S. Equities ETF (DCPE) and the DoubleLine Opportunistic Bond ETF (DBND). The former comes with an expense ratio...

SEC’s Precidian Ruling is a Game Changer for Active ETF Space

With the Securities and Exchange Commission (SEC) pushing forward with non-transparent exchange traded funds, more money managers may enter the ETF space with their own active strategies without worrying about others stealing their secret sauce. “What it means for us is we can bring out strategies – true alpha generating...

DoubleLine Licenses Precidian’s ActiveShares® Exchange-Traded Fund Structure

DoubleLine has entered into a licensing agreement with Precidian Investments, LLC. (Precidian) to use ActiveShares®, Precidian’s proprietary actively managed exchange-traded funds (ETFs) structure. The ActiveShares® methodology will allow DoubleLine to deliver actively managed investment strategies via ETF vehicles without disclosing holdings on a daily basis. “At DoubleLine, we continually review...

First Manhattan Co. Announces Agreement With Precidian Investments, LLC

NEW YORK--(BUSINESS WIRE)--First Manhattan Co., an independently owned and operated investment advisory and wealth planning firm, today announced that it has entered into an agreement to license ActiveShares®, the proprietary actively managed exchanged-traded fund structure from Precidian Investments, LLC. The Precidian model enables a company to deliver actively managed investment...

ETFs Evolve, Yet Again

Almost 30 years have passed since the birth of ETFs and many milestones have been reached along the way. The latest helps to address the long-awaited needs of confidential active management.  By: Reginald M. Browne, Principal, GTS   On March 9, 2020, the global ETF industry will celebrate its 30th...

Precidian Paves the Way for Non-transparent Active ETFs

Since 2014, Precidian Investments has sought Securities and Exchange Commission (SEC) approval for a new kind of active exchange-traded fund (ETF) that does not disclose its daily holdings. No longer. Taken from: Brown Brothers Harriman's Exchange Thoughts ETF Newsletter by Shawn McNinch, Ryan Sullivan and Alison Flores.   On May 20, the...