Companies thinking about launching actively managed exchange-traded funds in the U.S. might want to see first what kind of splash they make across the pond. In March Bear Stearns Asset Management filed papers with the Securities and Exchange Commission to launch an actively managed ETF. The proposed YYY Trust would invest in both money market and short-term fixed income tools. But the process has not been a quick one. The company, which has been negotiating with regulators, does not plan to introduce the product to the public for between three and six months. When it does, the industry will watch with interest at how investors respond to what might become the biggest investment innovation in years, according to Investment News. Experts suggest that because European regulations surrounding the development and release of new products are less rigid, introducing unconventional tools there e before rolling them out in the U.S. may make better business sense. If the Bear Stearns product is successfully received, not everyone may be willing to wait for the U.S. regulatory rigmarole before coming to market. “Europe is catching up rapidly and in some ways passing the U.S.,” said Greg Ehret, senior managing director and head of sales and distribution in Europe for Boston-based State Street Global Advisors. The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.
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