American Century Investments is seeking regulatory approval for another pair of actively managed, semi-transparent ETFs, according to a Securities and Exchange Commission filing.
The $175 billion asset manager plans to launch the American Century Growth ETF and American Century Value ETF later this year.
The firm, based in Kansas City, Missouri, already has an agreement with Precidian Investments to license the firm’s ActiveShares methodology, which would allow ETF issuers to launch actively-managed, semi-transparent ETFs upon approval by regulatory authorities.
Precidian, which is part-owned by Legg Mason, has struck deals with JP Morgan Asset Management, BlackRock and Nationwide to offer their strategies via an ETF structure that does not disclose holdings on a daily basis, but retains the liquidity and tax advantages of the vehicle.
Ed Rosenberg, head of ETFs for the firm said that the move to register these funds now is in an attempt to stay ahead. He explained that when regulatory authorities finally give the greenlight to launch these semi-transparent ETF products, the registration and the waiting window afterwards could take another 75 to 90 days.
'It’s all about being ready and prepared. If you don’t have a filing out there when it’s approved, you have to put one in,’ Rosenberg said. ‘It’s all about being ready.’
An American Century spokeswoman confirmed the content of the filing.
American Century made its entrance into the ETF market in January this year with two ETFs: the index-based American Century Stoxx US Quality Value ETF and the actively-managed American Century Corporate Bond ETF.
The firm also made a series of hires to prepare for its first foray into the market. In January, it hired a pair of BlackRock iShares alumni Rene Casis as a portfolio manager and Sean Walker as an ETF specialist.