New Information on Proposed Actively-Managed Exchange-Traded Fund Structures
BOSTON, July 27, 2015 /PRNewswire/ -- Eaton Vance Corp. (NYSE: EV) announced today the availability on NextShares.com of information concerning the regulatory status of proposed "portfolio-protected" active exchange-traded fund (ETF) structures that could be competitive with NextShares™ if approved. Included on the website is a letter dated April 17, 2015 (the April 17th Letter) from the staff of the U.S. Securities and Exchange Commission (SEC) addressing the exemptive application filed by Precidian ETFs Trust, et al. on December 22, 2014 (SEC File No. 812-14405). The April 17th Letter (available at www.NextShares.com/secprecidian) was obtained pursuant to a Freedom of Information Act request. The letter 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.
Eaton Vance will host a conference call and webcast at 11:00 AM ET this morning to discuss this and other recent developments relating to the Company's NextShares initiative. To participate, please call (877) 201-0168 (domestic) or (647) 788-4901 (international) and refer to "Eaton Vance NextShares Update." A webcast of the discussion can also be accessed via NextShares.com. Beginning later today, a replay of the call will be available for one week by calling (855) 859-2056 (domestic) or (404) 537-3406 (international) or by accessing the NextShares website. Listeners to the telephone call-in replay must enter the Conference ID number 95018464.
NextShares are a new type of actively managed fund designed to provide better performance for investors. As exchange-traded products, NextShares have built-in cost and tax efficiencies. Unlike conventional ETFs, NextShares 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. Learn more by visiting NextShares.com.
Navigate Fund Solutions LLC (Navigate) is a wholly owned subsidiary of Eaton Vance Corp. formed to develop and commercialize NextShares. Aspects of the operation of NextShares are protected intellectual property owned by Navigate.
Eaton Vance Corp. is one of the oldest investment management firms in the United States, with a history dating back to 1924. Eaton Vance and its affiliates managed $307.3 billion in assets as of June 30, 2015, offering individuals and institutions a broad array of investment strategies and wealth management solutions. For more information, see eatonvance.com.
This press release is for informational purposes only and is not intended to constitute, and should not be construed as, an offer to sell securities. The launch of NextShares is conditional upon fund regulatory approval, the likelihood and timing of which cannot be predicted. Commercial success also requires completion of enabling implementation technology and acceptance by market participants, which cannot be assured. Like mutual funds, NextShares will 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 and may vary significantly from anticipated levels during periods of market volatility. Although limit orders may be used to control trading costs, they cannot be used to control or limit trade execution prices. There can be not 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. Market trading prices of NextShares may be above, at or below NAV, will fluctuate in relation to NAV based on supply and demand in the market for shares and other factors, and may vary significantly from NAV. 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. The performance of actively managed NextShares will depend in part on the portfolio managers' successful application of analytical skill and investment judgment. A NextShares fund is not a complete investment program, and there is no guarantee that it will achieve its investment objective. It is possible to lose money on an investment in NextShares. Investors in NextShares should have a long-term investment perspective and be able to tolerate potentially sharp declines in value. An investment in NextShares is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, entity or person.
SOURCE Eaton Vance Corp.
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