Acacia Files for Two Repo ETFs
Acacia Asset Management LLC filed new fund registrations for Acacia 10:30am US Government 1-Day Overnight Term Repo ETF and Acacia 10:30am US Government 7-Day Maximum Term Repo ETF." The principal investment strategy says, "The Fund seeks to achieve its investment objective by investing, by 10:30 am ET each Business Day, on a daily basis, in repurchase agreements ("Repos") with overnight maturity ("overnight repos") that are fully collateralized by U.S. Government Securities. Under normal market conditions, the Fund will invest at least 80% of the value of its net assets in overnight repos that are fully collateralized by U.S. Government Securities. The Adviser deems an overnight repo to be "fully collateralized" only if the Fund receives from its Financing Counterparty, for maintenance in the Fund's custody account(s), U.S. Government Securities or cash instruments ("Collateral") having a market value equal to or greater than the Resale Price. The Adviser defines "U.S. Government Securities" as: Bills, bonds and notes that are under 10 years in maturity, and issued and guaranteed by the U.S. Treasury ("Treasuries"); Securities issued by any department, agency, instrumentality or establishment of the U.S. government, which are guaranteed by the U.S. government ("Guaranteed Agency Securities"); Securities issued by any department, agency, instrumentality, establishment or Government Sponsored Entity ("GSE") of the U.S. government ("Agency Securities"); and Mortgage-backed securities, including trust receipts, fixed and adjustable rate pass-throughs and strips, issued or guaranteed by the Federal National Mortgage Corporation, the Government National Mortgage Association or the Federal Home Loan Mortgage Corporation ("Agency MBS")." It adds, "`On any day the Fund has excess cash, the Fund may invest all or a portion of such excess cash in short duration fixed income exchange-traded funds ("ETFs") and money market funds that invest principally in Treasuries. The Fund may invest up to 20% of its net assets in such ETFs and money market funds and generally invests in ETFs and money market funds that are rated "AAA" by at least one rating agency." The new funds will have an expense ratio of 0.03% (or 0.15% before a 0.12% fee waiver).
