Eaton Vance Management made filing with the U.S. Securities and Exchange Commission to offer exchange traded managed futures (ETMF) in a bid to prevent front-running in relevant to disclosures rules on actively managed exchange traded fund structure.
ETMFS is set to act as a new type of open-end fund providing confidentiality of portfolio holdings while retaining cost and tax efficiencies, according to the SEC filing.
With prices associated with the daily net asset value (NAV) of ETMFS, the fund will be trading on an exchange. The product allows a type of trading that is based on NAV.
Eaton would be getting help from this new product in an attempt to cease front runners from making exploitation of the strategies that could result in the mimicry of the holdings and strategy.
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