Columbia Management Investment Advisers Files For Columbia AMT-Free Muni Target 2017 ETF
Columbia Management Investment Advisers has filed paperwork with the SEC for a “Columbia AMT-Free Muni Target 2017 ETF.” The Fund generally seeks current income exempt from federal income tax, including the federal alternative minimum tax. They did not specify a trading symbol or expense ratio in the initial filing.
Principal Investment Strategies
Under normal circumstances, the Fund will invest at least 80% of its net assets in bonds and other fixed-income securities that pay interest exempt from federal income tax (including the federal alternative minimum tax). These securities are issued by states and their political subdivisions, agencies, authorities and instrumentalities and by other qualified issuers. The Fund may invest up to 20% of its total net assets in securities the interest on which is subject to federal income tax, including the federal alternative minimum tax.
The Fund will generally invest in securities that, at the time of purchase, are investment grade or are unrated but determined by Columbia Management Investment Advisers, LLC (the Investment Manager), the Fund’s investment adviser, to be of comparable quality. The Fund may invest in fixed or variable-rate debt securities, including zero-coupon bonds.
The Fund will invest principally in fixed-income securities that mature between June 1 and August 31of the year referenced in its name. As securities mature, proceeds will typically be re-invested into tax-exempt cash equivalents directly or through tax-exempt funds. The Fund will wind up and terminate on or about [August 31st] of the year referenced in its name. Upon its termination, the Fund will distribute substantially all of its net assets, after making appropriate provision for any liabilities of the Fund, to the then-current shareholders.
The Fund is non-diversified, which means that it can invest a greater percentage of its assets in a single issuer than can a diversified fund.
For the complete filing click: HERE