Alternative Investments: Legg Mason’s First Semi-Transparent ETF
Legg Mason uses the semi-transparent technology of Precidian Investments LLC, ActiveShares.
Legg Mason has launched The ClearBridge Focus Value ETF (CBOE: CFCV) on the Chicago Board Options Exchange (CBOE). It is a fund aiming for long-term capital appreciation. The ETF is of the semitransparent kind, a technology offered by Precidian’s ActiveShares format. The active fund managers, in this case, ClearBridge Investments, LLC, can, therefore, keep its strategy confidential in the interests of the fund and its investors. (ETF EXPRESS)
The ETF began trading on the CBOE on May 28, 2020.
Best of both worlds
The semitransparent structure is an amalgam of the best features from the ETF structure and active fund management.
The ClearBridge Focus Value ETF will invest in a select number of large-capitalization stocks through fundamental research, identifying companies with strong business franchises and attractive valuations.
These are companies with a market cap that is typically greater than $ 5 billion. The managers will combine the bottom-up fundamental analysis with macro outlook and arrive at a portfolio of 30-40 companies.
“Precidian’s ActiveShares structure is not only an evolution in ETFs, but also a potential game-changer for active management,” said Joseph A. Sullivan, Chairman and CEO of Legg Mason. “It has the potential over time to transform how retail investors access the best active strategies.”
“This is another exciting step in the development of ETFs, giving investors greater choice and more opportunities to invest in otherwise inaccessible active strategies in a highly efficient and confidential ETF wrapper,” said Terrence Murphy, CEO of ClearBridge Investments.
The fund has an expense ratio of 0.50%.
As of June 4, 2020, the fund had total net assets of $2.69 million.
Blackrock wades into non-transparent ETFs
Meanwhile, BlackRock (NYSE: BLK), the parent of iShares, filed for four actively managed ETFs—three transparent and one nontransparent with the Securities and Exchange Commission on Wednesday.
iShares manages more than $1 trillion in ETFs.
Related Story: Semi-transparent ETFs Advisor Love
Latest Alternative Investment News
Funds and accounts advised by T. Rowe Price Associates, Inc. led an investment round worth $2.5 billion in electric vehicle maker Rivian. Participants in this investment round include Soros Fund…
PE Partnership Terms – Best Practices Callan, an institutional investment consulting firm, released its Private Equity Fees and Terms Study to serve as a reference for institutional investors. This study…
Clear, a blockchain startup founded in 2018, specializes in removing complex frictions in B2B trade. One such pain point is the contractual settlement and reconciliation for roaming agreements between telecom…
Alternative Investment: Vanguard Launches Its First ESG-focused Fixed Income Product For U.S. Investors
Vanguard filed a preliminary prospectus for a corporate bond ETF that will offer U.S. investors investment-grade corporate bonds with additional exposure to environmental, social, and governance (ESG) criteria. Vanguard has…