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SEC Expands Permitted Holdings for Non-Transparent ETFs

The Amended Order permits a Fund to invest in other securities and instruments including but not limited to fixed income securities, foreign investments that do not trade contemporaneously with Shares, and derivatives.
The Amended Order permits a Fund to invest in other securities and instruments including but not limited to fixed income securities, foreign investments that do not trade contemporaneously with Shares, and derivatives.

The SEC Division of Investment Management issued an amended order allowing an actively managed exchange-traded fund to expand its permitted investments without being subject to a daily portfolio transparency requirement.

In the order, the SEC amended a prior exemption granted to Blue Tractor ETF Trust and Blue Tractor Group, LLC. Under the prior order, the funds were restricted to investing primarily in domestic exchange-traded equity securities and related futures.

The amended order permitted the funds to invest in a broader range of securities and instruments. The expanded universe included fixed income securities, foreign investments that did not trade contemporaneously with the funds' shares, and derivatives. The relief granted exemptions from provisions governing redeemable securities pricing, dealer markups, and affiliated transactions.

The exemptions were effective immediately and remained subject to the conditions detailed in the applicants' amended application.

 

Primary Sources

  1. In the Matter of : Blue Tractor ETF Trust : Blue Tractor Group, LLC: ORDER UNDER SECTIONS 6(c) AND 17(b) OF THE INVESTMENT COMPANY ACT OF 1940

Tags

Regulated Activities
Disclosures
Regulated Entities
Investment Funds (SEC Registered)
Sub-Entity
ETFs
Body of Law
Securities Law
Jurisdiction
US - Federal
Organization
SEC