Gencap, the firm behind the FactorShares ETFs that brings funds to market on behalf of third-party clients, updated its regulatory paperwork seeking permission to offer active funds. It still hopes a Mongolia-focused equity fund will be the first ETF launched once it obtains approval.
FactorShares was purchased by Gencap, a firm headed by former MacroMarkets Chief Executive Sam Masucci, and involving a number of ETF industry veterans.
Gencap helps clients bring passive funds to market under the Securities Act of 1933 and the Investment Company Act of 1940, and hopes to market actively ‘40 Act ETFs too. Gencap has indicated it might even help clients launch ETNs. Gencap planned from the first to use the permission that FactorShares already had to market’33 Act funds as well as passively managed ’40 Act funds.
Gencap is behind eight ETFs, including three metals and mining funds under the brand name “PureFunds” and five “FactorShares” bull-and-bear leveraged spread strategies that pair S&P 500 exposure with other asset classes, including oil, Treasurys, the dollar and gold.
The PureFunds ETFs—PureFunds ISE Diamond/Gemstone (NYSEArca: GEMS); PureFunds ISE Junior Silver (Small Cap Miners/Explorers) (NYSEArca: SILJ); and PureFunds ISE Mining Service (NYSEArca: MSXX)—were all launched under FactorShares’ exemptive relief. The funds, like other miner-related equities funds, are frequently on IndexUniverse’s daily Best/Worst ETF Returns tables.
Gencap’s petition to offer active funds initially surfaced in a June 2012 filing from Active Relief LLC, which was identified in the latest filing as a predecessor entity of Gencap.
Today the news is full of stories about the collapsing pound. Not so much.
Real-world tracking difference is incredibly important. So why does nobody look at it?
The latest SPIVA scorecard is pretty depressing news for active managers.
Today’s headlines on these quant/active strategies have us scratching our heads.