State Street Global Advisors has won exemptive relief from the Securities and Exchange Commission for its exchange-traded funds, permitting fund firms to invest higher amounts in the instruments.

Current Investment Company Act of 1940 rules prevent registered investment companies from acquiring more than 3% of the total outstanding voting stock of another investment company or for investing more than 5% in a single or 10% in two or more investment firms.

The exemptive relief applies to all of State Street’s funds.

“The relief will allow mutual funds greater flexibility to invest in State Street-managed ETFs, to achieve their portfolio management goals,” said James Ross, senior managing director of State Street. “Previously, they were restricted by the ’40 Act stipulation in the amount they could invest, and we are pleased that this obstacle has been removed.”

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