Matisse Capital Files for Two Discounted Closed-End Fund ETFs

Matisse Capital has filed for two actively managed ETFs designed to capitalize on closed-end funds trading below their net asset values. The Matisse Discounted Closed-End Fund Strategy ETF will invest at least 80% of its assets in discounted closed-end funds across equity and fixed income markets, while the Matisse Discounted Bond CEF Strategy ETF will focus on discounted closed-end funds primarily holding bonds. Both strategies will typically maintain portfolios of 30 to 90 funds, using proprietary quantitative models to identify opportunities where discounts could narrow over time. The funds aim to generate returns through underlying portfolio appreciation, discount narrowing, and regular cash distributions. The bond-focused ETF may gain substantial exposure to below-investment-grade debt, potentially reaching two-thirds of its portfolio. Both ETFs may use leverage, subject to regulatory limits.