EatonVance releases new information on proposed actively-managed ETF structures
Eaton Vance Corp has released information concerning the regulatory status of proposed "portfolio-protected" active exchange-traded fund (ETF) structures that, if approved, could be competitive with the firm’s new NextShares funds.
Included on the NextShres.com website is a letter dated 17 April, 2015 from the staff of the US Securities and Exchange Commission (SEC) addressing the exemptive application filed by Precidian ETFs Trust, et al on 22 December, 2014. The letter was obtained under a Freedom of Information Act request and concludes that the SEC staff is "unwilling to support the request for exemptive relief" and "will recommend denial" unless applicants withdraw or revise the proposal.
NextShares are a new type of actively managed fund designed to provide better performance for investors. As exchange-traded products, NextShares are designed to have built-in cost and tax efficiencies. Unlike conventional ETFs, they protect the confidentiality of fund trading information and provide buyers and sellers of shares with transparency and control of their trading costs. A range of leading asset managers have announced plans to offer NextShares funds to their investors.