has filed to launch two actively managed ETFs that invest in non-agency mortgage-backed securities collateralized by pools of
prime and Alternative-A residential mortgage loans. Ian Salisbury picked up the
January 16 SEC filing
Wall Street Journal Fund Track column
Salisbury notes the challenges PowerShares faces with its proposed funds, coming as it is against the backdrop of a tough climate. "For one, the new funds will lack the track record of a vehicle like Pimco Total Return," Salisbury writes. "There also could be questions about the new funds' novel legal structure," he adds, noting that
ETFs only recently started incorporating active management.
Also, Salisbury points out that fixed income ETFs have run into some issues lately, such as costly trading spreads and hard-to-gauge prices.
The PowerShares Prime Non-Agency RMBS Opportunity Fund
Alt-A Non-Agency RMBS Opportunity Fund
will be distributed by Invesco Aim Distributors
. Bank of New York
will serve as the funds' administrator, custodian, transfer agent and dividend disbursing agent.
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