Legg Mason seeks OK to offer actively managed ETFs

Legg Mason Inc. yesterday filed papers with the Securities and Exchange Commission seeking permission to offer actively managed exchange-traded funds. A number of firms have recently filed such applications — including rival T. Rowe Price Inc. — but few actively managed ETFs currently exist. “I think everyone views the active ETF space as relative new, and that it still has a lot of opportunities,” said Mary Athridge, a spokeswoman for Legg Mason. “We hope to be one of the first wave.” The filing provides few details about the proposed ETFs, but does suggest that the funds will provide full transparency, as do other actively managed exchange-traded funds on the market. Transparency has always been a sticking point in the development of actively managed ETFs. Many industry watchers continue to argue that few managers will agree to full transparency because they don't want to telegraph securities selection. But some in the industry, such as Grail Advisers LLC — which offers seven actively managed ETFs — believe managers will learn to live with such transparency.