PALM DESERT, Calif. – While speculation on the first actively- managed fund has focused on when one will be introduced and who will be the first to offer such a product, the Securities and Exchange Commission is seeking the industry’s help in figuring out how an actively-managed exchange-traded fund will work.

The SEC is preparing to issue a concept release seeking the fund industry’s comments and ideas on the development of an actively- managed exchange-traded fund, said Paul Roye, the SEC’s director of investment management. Roye made his comments here at a conference sponsored by the Investment Company Institute of Washington D.C. and the Federal Bar Association, also of Washington. The SEC is trying to determine what purpose such a product should serve, what cost advantages it might have and how the product would operate, he said.

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