BOSTON, March 28, 2016 /PRNewswire/ -- Eaton Vance Corp. (Eaton Vance) and Nasdaq, Inc. (Nasdaq) today announced the listing and trading of two additional NextShares™ exchange-traded managed funds, Eaton Vance Global Income Builder NextShares (Nasdaq: EVGBC) and Eaton Vance TABS 5-to-15 Year Laddered Municipal Bond NextShares (Nasdaq: EVLMC). On Wednesday, March 30, 2016, these Funds will list and begin trading on the Nasdaq Stock Market LLC (Nasdaq Stock Market) and become available to individual investors, financial advisors and institutions through Folio Investing® and Folio Institutional®, leading online broker-dealers. The first NextShares fund, Eaton Vance Stock NextShares, was listed on the Nasdaq Stock Market and began trading on February 26, 2016.
NextShares are a new way to invest in actively managed strategies. Because they are actively managed, NextShares offer the potential for benchmark-beating returns by applying their manager's proprietary investment research. Because they trade on an exchange, NextShares may offer cost and tax efficiencies that can enhance shareholder returns. NextShares may invest across all fund asset classes and are expected to be offered by a range of well-known asset managers.
Eaton Vance Global Income Builder NextShares (Nasdaq: EVGBC) will invest in common stocks, income obligations, preferred stocks and hybrid securities around the globe, seeking total return. Under normal market conditions, the Fund currently expects to invest 50 to 80 percent of its net assets in common stocks, 10 to 40 percent of its net assets in income obligations, including cash or cash equivalents, and up to 30 percent of its net assets in preferred stocks and other hybrid securities. Using a master-feeder structure, the Fund will hold its investments on an indirect basis through a separate registered investment company, Global Income Builder Portfolio (the Portfolio). Eaton Vance Global Income Builder Fund (Class A: EDIAX; Class C: EDICX; Class I: EDIIX; Class R: EDIRX), an open-end mutual fund, also invests through the Portfolio. The Portfolio is managed by Christopher Dyer, Jeffrey Mueller, Michael Allison and John Croft. Mr. Dyer and Mr. Mueller are Vice Presidents of Eaton Vance Management (International) Limited, a subsidiary of Eaton Vance Management. Mr. Allison and Mr. Croft are Vice Presidents of Eaton Vance Management.
Eaton Vance TABS 5-to-15 Year Laddered Municipal Bond NextShares (Nasdaq: EVLMC) will follow a rules-based, laddered approach to municipal bond investing, seeking current income exempt from regular federal income tax. The Fund will maintain approximately equal-weighted exposures across the 5-to-15 year maturity range of the municipal market, emphasizing investments identified as attractively valued based on credit research. Using a master-feeder structure, the Fund will hold its investments on an indirect basis through a separate registered investment company, 5-to-15 Year Laddered Municipal Bond Portfolio (the Portfolio). Eaton Vance TABS 5-to-15 Year Laddered Municipal Bond Fund (Class A: EALTX; Class C: ECLTX; Class I: EILTX), an open-end mutual fund, also invests through the Portfolio. The Portfolio is managed by James Evans, Christopher Harshman and Brian Barney, Vice Presidents of Eaton Vance Management, a subsidiary of Eaton Vance Corp.
Eaton Vance has registered 18 initial NextShares funds, representing a broad range of actively managed investment strategies, including equity, fixed income, floating-rate income, absolute return and multi-asset funds. Additional NextShares funds are expected to become available later in 2016.
"Eaton Vance is pleased to announce the introduction of our second and third NextShares to the marketplace," said Thomas E. Faust, Jr., Chairman and Chief Executive Officer. "By rolling out more NextShares funds, we further demonstrate the performance and trading characteristics of NextShares and position a broader range of investors to realize the potential benefits of this innovative fund structure."
"We're excited to be the listing venue for two new NextShares funds," said Jeff McCarthy, Head of Listings at Nasdaq. "Just a month after the initial Fund launched and made history in February, this collaboration reflects a joint commitment to providing investors with innovative products available on the Nasdaq Stock Market."
"We are pleased to offer advisors, investors and institutions a way to trade NextShares funds through Folio Investing and Folio Institutional," said Steven M.H. Wallman, CEO of Foliofn, Inc., a leading financial technology company. "We are committed to empowering investors by creating access to innovative investment solutions such as NextShares and our own powerful trading tools."
More information on how to trade NextShares on the Folio Institutional and Folio Investing brokerage platforms is available at www.folionextshares.com
About NextShares Solutions and Eaton Vance
NextShares Solutions LLC is a wholly owned subsidiary of Eaton Vance formed to develop and commercialize NextShares. Aspects of the operation of NextShares are protected intellectual property owned by NextShares Solutions. For more information, visit nextshares.com.
Eaton Vance (NYSE: EV) is a leading global asset manager whose history dates to 1924. With offices in North America, Europe, Asia and Australia, Eaton Vance and its affiliates managed $302.6 billion in assets as of January 31, 2016, offering individuals and institutions a broad array of investment strategies and wealth management solutions. The Company's long record of providing exemplary service, timely innovation and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today's most discerning investors. For more information, visit eatonvance.com.
Nasdaq (Nasdaq: NDAQ) is a leading provider of trading, clearing, exchange technology, listing, information and public company services across six continents. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to more than 3,500 listed companies with a market value of approximately $9.5 trillion and more than 10,000 corporate clients. To learn more, visit nasdaq.com.
About Folio Investing and Folio Institutional
Folio Investing is the online brokerage where investors can create an unlimited number of diversified investment portfolios, called folios, to combine the benefits of direct stock ownership with the convenience of ETFs, NextShares and mutual funds. Investors can customize each folio with up to 100 stocks, ETFs, NextShares, and mutual funds or choose from over 160 free, pre-made Ready-to-Go folios. Folio Institutional is a leading investment solutions and financial technology company that offers an integrated brokerage and custodial platform featuring state-of-the-art trading, portfolio management tools, and private placement capabilities. For more information about Folio, see folioinvesting.com and folioinstitutional.com.
The information contained herein is provided for informational purposes only, is not intended as investment or tax advice, and does not constitute a solicitation of an offer to buy or sell specific securities.
Shares of NextShares funds are traded in the secondary market through a broker, and may not be individually purchased or redeemed from the fund. Buyers and sellers of shares normally transact with each other, rather than with the fund. These transactions do not affect the fund or its investments. When the fund does issue or redeem shares, the transactions are made through designated authorized participants and are normally in kind when practicable, meaning that the fund receives or delivers securities rather than cash. By transacting in kind, a NextShares fund can lower its trading costs and enhance fund tax efficiency by avoiding forced sales of securities to meet redemptions. As exchange-traded securities, NextShares can operate with low transfer agency expenses by utilizing the same highly efficient share processing system as used for exchange-listed stocks.
Market trading prices of NextShares are linked to the fund's next-computed net asset value (NAV) and will vary from NAV by a market-determined premium or discount, which may be zero. Buyers and seller of NextShares will not know the value of their purchases and sales until after the fund's NAV is determined at the end of the trading day. Market trading prices may vary significantly from anticipated levels. NextShares do not offer investors the opportunity to buy and sell intraday based on current (versus end-of-day) determinations of fund value. NextShares trade execution prices will fluctuate based on changes in NAV. Although limit orders may be used to control trading costs, they cannot be used to control or limit trade execution prices. As a new type of fund, NextShares do not have an operating history and may initially be available through a limited number of brokers. There can be no guarantee that an active trading market for NextShares will develop or be maintained, or that their listing will continue unchanged. Buying and selling NextShares may require payment of brokerage commissions and expose transacting shareholders to other trading costs. Frequent trading may detract from realized investment returns. The return on a shareholder's NextShares investment will be reduced if the shareholder sells shares at a greater discount or narrower premium to NAV than he or she acquired the shares. NextShares funds issue and redeem shares only in specified creation unit quantities in transactions by or through authorized participants. In such transactions, a fund issues and redeems shares in exchange for the basket of securities, other instruments and/or cash that the fund specifies each business day. The basket is not intended to be representative of the fund's current portfolio positions and may vary significantly from current positions.
About Risk: Performance of Global Income Builder NextShares is sensitive to stock market volatility. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. For TABS 5-to-15 Year Laddered Municipal Bond NextShares, an imbalance in supply and demand in the municipal market may result in valuation uncertainties, greater price volatility and less liquidity. There generally is limited public information about municipal issuers. As interest rates rise, fixed income investments generally decline in value. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. No Fund is a complete investment program and you may lose money investing therein. The Funds may engage in other investment practices that may involve additional risks, and you should review the Fund prospectus for a complete description.
Before investing, investors should consider carefully the investment objectives, risks, charges and expenses of a NextShares fund or mutual fund. This and other important information is contained in the prospectus and summary prospectus available from a financial advisor. Prospective investors should read the prospectus carefully before investing.
Eaton Vance Global Income Builder NextShares, Eaton Vance TABS 5-to-15 Year Laddered Municipal Bond NextShares and Eaton Vance Stock NextShares and are distributed by Foreside Fund Services, LLC. Eaton Vance Global Income Builder Fund, Eaton Vance TABS 5-to-15 Year Laddered Municipal Bond Fund and Eaton Vance Stock Fund are distributed by Eaton Vance Distributors, Inc. For more information see eatonvance.com.
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SOURCE Eaton Vance Corp.