Franklin Templeton Investments is one step closer to launching its maiden active exchange-traded fund, dubbed the Franklin Short Duration Government ETF.

According to a regulatory filing, the fund will bet on mortgage-backed securities including adjustable rate mortgage securities (ARMs) as well as Treasury bonds. The portfolio managers for the new offering are Roger Bayston and Patrick Klein.

The firm initially filed with the Securities and Exchange Commission to launch the ETF in June 2012.

“While our focus continues to be on traditional active fund management, we have been evaluating the growing interest in actively managed ETF offerings to determine whether to extend our product offering,” according to an e-mailed statement from the firm.

“To that end, we filed and received approval from the SEC for the regulatory relief needed to offer an active ETF, specifically a fund that would invest in short duration fixed income securities, primarily securities issued or guaranteed by the U.S. government, its agencies or instrumentalities.”

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