The Nottingham Company (Nottingham), a fund services administrator and private label issuer to the mutual fund and ETF industry, has received Security and Exchange Commission (SEC) approval for the short form exemptive relief application for Blue Tractor’s Shielded Alpha ETF Structure.This SEC action sets the stage for Nottingham and affiliate investment advisor OBP Capital and the Spinnaker ETF Series, to bring non-transparent ETFs to market for new and existing clients.
“Non-transparent ETFs are expected to be the next wave of innovation and growth in ETF formations, as portfolio managers look to incorporate active strategies in managing portfolios while preserving their intellectual property,” says Kip Meadows, Founder and CEO of Nottingham. “Now that this exemptive relief application is effective, we are well-positioned to launch active ETF structures on behalf of interested clients, making us possibly the first private label ETF issuer to do so.”
Nottingham entered into an agreement with Blue Tractor due to their innovation and thought leadership in non-transparent ETFs. Blue Tractor’s Shielded Alpha℠ structure effectively masks a portion of the fund manager’s portfolio and trading strategy, yet still provides authorised participants (APs) and market makers with the transparency necessary to conduct efficient market trading.
“We believe non-transparent ETFs will be a central focus of OBP Capital’s growth over the next few years,” says Katherine Honey, Managing Member of OBP Capital LLC. “The Blue Tractor model is a key element of that strategy.”