NEW YORK, Aug. 05, 2019 (GLOBE NEWSWIRE) -- Blue Tractor Group, LLC (“Blue Tractor”) today announced that it has filed a ninth amended and restated application with the U.S. Securities and Exchange Commission (“SEC”) for its innovative Shielded Alpha℠ ETF structure for use by actively managed equity portfolio managers.
The Shielded Alpha℠ ETF structure would be highly transparent and would disseminate daily to the market a creation basket (a.k.a. the portfolio composition file or “PCF”) consisting of 100% of the securities in the fund’s actual portfolio but importantly, not their actual portfolio weightings, thereby fully obscuring an active manager’s alpha generation strategy. A Shielded Alpha℠ ETF’s creation basket weightings would have a minimum 90% asset value overlap with the fund’s actual portfolio weightings at the beginning of each trading day. As such, a Shielded Alpha℠ ETF would not be a non-transparent ETF, but rather a highly transparent ETF.
Because a Shielded Alpha℠ ETF would not be a non-transparent ETF, Blue Tractor’s proposal would provide asset managers additional choice over what type of actively managed ETF structure to utilize.
Said Terry Norman, Founder of Blue Tractor, “With this latest amendment we are very pleased to announce that in addition to domestic all-cap equity securities and ADRs, asset managers using the Shielded Alpha℠ ETF structure would also be able to invest in foreign equity securities from countries whose stock markets trade contemporaneously with the U.S. market. As such, the Shielded Alpha℠ ETF structure could be used in connection with a wider range of investment strategies.”
Added Simon Goulet, Co-Founder of Blue Tractor, “On June 14, 2019 we announced the beta release of our cloud hosted software that facilitates generation of the daily PCF file. We’ve been very pleased with the response and feedback from the ETF community. We welcome interested parties to contact Blue Tractor for an online demonstration and discussion.”
Blue Tractor seeks to enter into licensing agreements with investment advisers to utilize the Shielded Alpha℠ solution to bring to market their own Shielded Alpha℠ ETFs.
Blue Tractor’s application, filed on August 2, 2019, was prepared by Michael W. Mundt, Partner in the Washington, D.C. office of Stradley Ronon Stevens & Young, LLP and is available for review on the SEC’s website through the EDGAR database at sec.gov and at bluetractorgroup.com. The SEC has yet to approve the Shielded Alpha℠ ETF structure.
About Blue Tractor Group
Blue Tractor Group, LLC develops proprietary solutions to facilitate novel exchange-traded fund products. Blue Tractor’s Shielded Alpha℠ ETF structure (patent pending) permits active fund management within an ETF wrapper, while fully shielding the fund’s proprietary alpha strategy. More information can be found at bluetractorgroup.com.
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