August 18, 2020
SEC approves the firm’s short form exemptive relief application for Blue Tractor’s Shielded Alpha℠ Non-Transparent ETF Structure
ROCKY MOUNT, N.C.–(BUSINESS WIRE)–The Nottingham Company, Inc. (“Nottingham”), a leading fund services administrator and private label issuer to the mutual fund and exchange-traded fund (“ETF”) industry, announced today the Security and Exchange Commission (“SEC”) has approved the short form exemptive relief application for Blue Tractor’s Shielded Alpha℠ ETF Structure.
This SEC action sets the stage for Nottingham and affiliate investment advisor OBP Capital and the Spinnaker ETF Series, to bring non-transparent ETFs to market for new and existing clients.
“Non-transparent ETFs are expected to be the next wave of innovation and growth in ETF formations, as portfolio managers look to incorporate active strategies in managing portfolios while preserving their intellectual property,” commented Kip Meadows, Founder and CEO of Nottingham. “Now that this exemptive relief application is effective, we are well-positioned to launch active ETF structures on behalf of interested clients, making us possibly the first private label ETF issuer to do so.”
Nottingham entered into an agreement with Blue Tractor due to their innovation and thought leadership in non-transparent ETFs. Blue Tractor’s Shielded Alpha℠ structure effectively masks a portion of the fund manager’s portfolio and trading strategy, yet still provides authorized participants (APs) and market makers with the transparency necessary to conduct efficient market trading.
“We believe non-transparent ETFs will be a central focus of OBP Capital’s growth over the next few years,” remarked Katherine Honey, Managing Member of OBP Capital LLC. “The Blue Tractor model is a key element of that strategy.”
Nottingham has been providing consulting, accounting and administration for pooled investment vehicles including open end mutual funds, ETFs, closed end interval funds, private investment, and hedge funds since 1988. The firm also offers unitized accounting and reporting to foundations, endowments, and government investment pools. It remains one of the largest privately held fund administration firms in the U.S., currently administering over $31 billion in AUA.
Nottingham affiliate OBP Capital LLC was established to assist Nottingham clients with ETFs, holding exemptive orders for both active and passive ETF structures. OBP Capital provides the oversight and compliance management necessary to effectively operate as an ETF investment advisor and does not compete in any way with the subadvisor portfolio managers of Nottingham-administered ETFs.
See the original press release here.