Ropes & Gray Advises Invesco on Development of an Innovative Non-Transparent ETF Model

In The News
September 26, 2019

Invesco Ltd., a leading global provider of exchange-traded funds (ETFs), announced on Sept. 25, that it has filed an application with the U.S. Securities and Exchange Commission (SEC) requesting exemptive relief to build its own proprietary non-transparent active ETF model. Invesco is being advised and represented by Ropes & Gray on this matter.

The proposed Invesco non-transparent ETF model will retain a number of the characteristics that investors find attractive in an ETF wrapper, including an effective arbitrage mechanism, tax efficiency and intraday tradability. During market hours, Invesco's proposed model will offer a clear view into an ETF's portfolio value at regular intervals. If approved, the Invesco non-transparent model would maintain confidentiality of a fund's strategy and help mitigate the risk of front-running by keeping a portion of the fund's holdings confidential to the market.

The Ropes & Gray team is led by asset management partner Paulita Pike and includes asset management partners Tom Hiller and Gregory Sheehan, strategic transactions partner Ed Black, tax partner Jim Brown, and asset management counsel Ed Baer.

“We are delighted to have partnered with Invesco on the development of this innovative product and we look forward to working with the SEC and its Staff as Invesco pursues bringing its model to the market,” Ms. Pike said.