Nottingham Company has filed with the SEC to launch an Actively-Managed ETF which will look invest in US equities. Nottingham is the latest addition to an increasingly longer line of issuers that have expressed their interest in bringing Active ETFs to market or have filed to launch these products. Some of the big names that have entered the spotlight of late are JP Morgan, Eaton Vance, Legg Mason and RiverPark Advisors.
Archive for March, 2010
HAV is an actively-managed ETF that invests in North American (primarily US) equities in order to achieve long-term capital appreciation and income. The sub-advisors, Patient Capital Management, utilize a value methodology to pick investments. The fund aims to purchase investments at favourable valuations, identified through research on company balance sheets, cash flows and management strength.
HAC is an actively-managed ETF that has a unique seasonal rotation investment strategy, developed by Don Vialoux and Brooke Thackray. It invests across equities, fixed income, commodities and currencies to achieve long-term capital appreciation. HAC’s investment methodology is dictated by a seasonal investment timeline which identifies industries, sectors and stock market segments that have done well historically in different months of the year.
More and more mutual fund players are starting to get interested in the Actively-Managed ETF space, but with the SEC reconsidering its moves before granting exemptive relief to new issuers, companies will be looking for ways to skip the line and jumpstart their Active ETFs before other competitors do. One such short cut that has been talked about is to convert existing actively-managed mutual funds into Active ETFs.
HAG is an actively-managed ETF that looks to achieve capital appreciation through exposure to the investment strategies of The Gartman Letter. HAG utilizes equities, futures and ETFs to gain both long and short exposure to global equities, commodities, fixed income and currencies. Dennis Gartman uses fundamental, macro-economic and technical analysis to identify profitable investment opportunities through all business cycles.
HAX is an actively-managed ETF that tries to achieve long-term capital growth by investing in large-caps which are constituents of the S&P/TSX 60 Index. The fund managers, Front Street, employ top-down research to identify companies that will underperform or outperform the index and then proceed to underweight or overweight those securities respectively.
On March 25th, the SEC announced in this release that it is going to defer granting exemptive relief to certain funds and ETFs which invest significantly in derivatives, while it conducts a review of the usage of these instruments in mutual funds and ETFs. The release specifically mentions that certain requests from actively-managed ETF issuers and leveraged ETF issuers are going to be affected by this deferment.
ActiveETFs | InFocus spoke with – Ken McCord, President of Horizons AlphaPro. AlphaPro is the sister company of Horizons BetaPro and is the only company in Canada to provide actively-managed ETFs to investors. Ken talks to us about AlphaPro’s plans, how AlphaPro will handle competition and where the opportunities and challenges lie for Active ETFs.
