Bringing you live news and features since 2006 

Invesco enters final phase for active non-transparent ETF model

RELATED TOPICS​

Invesco has reached the final regulatory stage in it its effort to build its own active non-transparent ETF model. The US Securities and Exchange Commission (SEC) has published a notice regarding Invesco’s exemptive application, indicating its plan to grant the needed relief subject to any comments it receives.

“Invesco is always looking for solutions to best solve for our clients’ investment outcomes in an innovative manner and we have high conviction that the Invesco active non-transparent ETF model will bring together the right combination of active and passive strategies,” says Anna Paglia, Global Head of ETFs and Indexed Strategies at Invesco. “The unique perspective and specialised background of Invesco’s active managers, housed within an ETF wrapper has exciting potential for client portfolios.”

The proposed Invesco active non-transparent ETF model will retain a number of the characteristics that investors find attractive in an ETF structure, including an effective arbitrage mechanism, tax efficiency and intraday tradability. Under the proposed model, each trading day Invesco will publish key data metrics to offer a clear view into an ETF’s portfolio value without fully disclosing the ETF holdings. The Invesco non-transparent model would thereby maintain confidentiality of a fund’s strategy and help mitigate the risk of front-running by keeping a portion of the fund’s holdings shielded from the market. If approved, the Invesco non-transparent active ETFs will strike at least two NAVs per day, thus providing multiple creation and redemption3 windows to authorised participants throughout the day.

Invesco also filed for an exemptive order to license Fidelity’s active equity ETF methodology in July 2020, which was granted in October 2020. Once the proprietary Invesco application is approved, the firm plans to utilise both the Fidelity active non-transparent equity model and the Invesco model to create Invesco active non-transparent ETFs. 

Latest News

News came last night from the US that the SEC has approved CBOE’s proposal to list and trade VanEck’s spot..
Irish domiciled funds surpassed EUR4.3 trillion AuM (Assets under Management) at end-March 2024, a 15 per cent increase in net..
European white label ETF platform, HANetf, has announced its total assets under management (AUM) has now exceeded USD4.31 billion...
New research from European ETF provider Tabula Investment Management shows investors are expecting improvements in ESG from the gold mining..

Related Articles

Timothy Rotolo, Range Funds
In 2023, Timothy Rotolo launched his business, Range Fund Holdings, the parent company for Range Indices and Range ETFs, followed...
Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by