What You Need to Know
- PGIM is the fourth asset manager to launch an actively managed bond fund since March.
- BlackRock has completed two reorganizations of closed-end muni bond funds.
- The LGBTQ+ ESG100 ETF, focused on companies that align with the LGBTQ community, is set to launch May 18.
PGIM Investments has expanded its ETF lineup with the launch of the PGIM Active Aggregate Bond ETF (PAB), a diversified portfolio of investment-grade bonds.
The ETF has an expense ratio of 0.19% and under normal circumstances will invest at least 80% of assets in a variety of U.S. bonds — Treasuries, corporates and mortgage- and asset-backed securities. The new ETF will be managed by senior members of PGIM’s Fixed Income multi-sector team, Richard Piccirillo, Lindsay Rosner and Stewart Wong.
“Given the current low-yield environment and potential for increased market volatility, there has been strong client demand for active fixed income solutions,” said Stuart Parker, president and CEO of PGIM Investments.
PGIM has two other actively managed bond ETFs — the PGIM Active High Yield Bond ETF (PHYL) and the PGIM Ultra Short Bond ETF (PULS).
BlackRock Reorganizes Closed-End Muni Funds
BlackRock has completed the reorganization of the BlackRock New York Municipal Income Quality Trust (BSE) and BlackRock New York Municipal Income Trust II (BFY) into the BlackRock New York Municipal Income Trust (BNY). It has also finalized the reorganization of the BlackRock Strategic Municipal Trust (BSD), BlackRock MuniYield Investment Quality Fund (MFT) and BlackRock Municipal Income Investment Trust (BBF) into BlackRock Municipal Income Trust II (BLE).
Both reorganizations were effective April 12, and both were approved by the boards and shareholders of the funds involved.
Common shareholders of the closed funds received an amount of common shares of BNY and BLE equal to the aggregate net asset value of their holdings of the closed funds as of the close of business on April 9. Cash was distributed for any fractional shares.
BlackRock will update performance and certain other data for the BlackRock closed-end funds on a monthly basis on its website in the “Closed-end Funds” section of blackrock.com as well as certain other material information as necessary from time to time.
BNY Mellon Named Administrator for SkyBridge’s Bitcoin ETF
If and when the Securities and Exchange Commission approves the FirstTrust SkyBridge Bitcoin ETF Trust, which is one of several Bitcoin ETFs pending before the agency, BNY Mellon will provide ETF basket operations, order taking, fund accounting, fund administration and transfer agency services for the fund as administrator.
The ETF seeks to buy and sell Bitcoin “so that the total value of the Bitcoin held by the Trust is as close to 100% of the net assets of the Trust as is reasonably practicable to achieve,” according to its SEC filing.