Huntington Asset Advisors
] request to convert a mutual fund into an actively managed ETF has been turned down by the SEC
. Reuters reports
that the asset management arm of Huntington Bancshares Inc waited two years for the SEC's decision.
, president and CEO of the shop, said they are disappointed with the decision. Huntington will launch the Huntington Rotating Strategy Fund
-- an ETF clone of the mutual fund the firm had hoped to close -- on its own.
"We had wanted to be able to promote the track record of the fund with the new ETF and allow investors to do a tax-free exchange, but sometimes you have to just capitulate and move forward," he said.
This result has dampened the high hopes of other companies and advisers that are planning to convert mutual funds into ETFs.
"It would have been huge for ETFs," Dave Nadig
, research director at IndexUniverse
, told Reuters
. "Can you imagine being able to take a mutual fund stalwart like the American Funds Growth Fund of America or Fidelity's Contrafund and turn it into an ETF?"
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