Putnam is a welcome entrant to ETFs given their history as one of oldest investment managers in the US, and as it emerges as a survivor of the tumultuous mutual fund times of the early 21st century.
The initial four funds they are proposing to launch are:
- Putnam Focused Large Cap Growth ETF
- Putnam Focused Large Cap Value ETF
- Putnam Sustainable Future ETF
- Putnam Sustainable Leaders ETF
The investment objectives and strategies are already covered in the FT article, but here is some more information on the nuts 'n bolts of the funds.
Putnam appears to have entered into some type of agreement with Fidelity to use Fidelity's actively-managed ETF approach, wherein the funds do not completely disclose their daily holdings.
Rather, each fund publishes a daily "Tracking Basket" that lists:
- some fund holdings
- ETFs that are indicative of the fund's holdings
- cash.
In addition, each fund will also publish a daily "Tracking Basket Weight Overlap", which is a percentage number that shows how much the Tracking Basket is similar to the fund's actual holdings.
Links to the initial registration (prospectus) and exemptive relief application here:
https://www.etfhearsay.com/2021/03/putnam-enters-etf-game.html
Here is the Putnam prospectus (initial registration statement):
https://www.sec.gov/Archives/edgar/data/1845809/000092881621000211/0000928816-21-000211-index.htm
Here is the Fidelity exemptive relief application for actively-managed ETFs using the "Tracking Basket" methodology:
https://www.sec.gov/Archives/edgar/data/35336/000119312519287794/d829357d40appa.htm
No comments:
Post a Comment