BOSTON, Nov. 9, 2017 /PRNewswire/ -- Eaton Vance Management (Eaton Vance), a subsidiary of Eaton Vance Corp. (NYSE : EV ), today announced the expected mid-November launch of Eaton Vance Oaktree Diversified Credit NextShares (the Fund), a new Eaton Vance-sponsored exchange-traded managed fund. Eaton Vance will advise the Fund and Oaktree Capital Management, L.P. (Oaktree), a subsidiary of Oaktree Capital Group, LLC (NYSE : OAK ), will subadvise the Fund. The Fund will establish investment exposures to credit markets around the world by investing in high-yield bonds, senior loans, convertibles, real estate debt securities, corporate structured credit and
emerging-market debt. Eaton Vance has filed a registration statement for the Fund with the U.S. Securities and Exchange Commission.
The Fund will be the first Eaton Vance-sponsored NextShares fund to be subadvised by an external manager. The Fund was formed after engaging with the investment consulting firm NEPC, LLC to identify promising investment strategies and investment managers as candidates for NextShares subadvisory relationships with Eaton Vance.
"Eaton Vance is pleased to offer exclusive retail access to the Oaktree diversified credit strategy in a NextShares fund," said Thomas E. Faust Jr., Chairman and Chief Executive Officer of Eaton Vance. "Oaktree has a distinguished record of generating attractive, risk-adjusted investment performance across credit strategies and a breadth of experience managing multistrategy, diversified portfolios. We believe the Oaktree diversified credit strategy delivered in the NextShares structure can provide a compelling opportunity to income-seeking investors."
NextShares are an innovative way to invest in actively managed strategies, offering the potential for benchmark-beating returns by applying their manager's proprietary investment research. As exchange-traded products, NextShares may offer cost and tax efficiencies that can enhance shareholder returns. The first NextShares fund began trading on the Nasdaq Stock Market LLC in February 2016. Funds from multiple sponsors have since been introduced across a range of assets classes, with more launches expected in the coming months.
"We are pleased to partner with Eaton Vance to bring an innovative solution to retail investors through the NextShares vehicle," said Tony Harrington, Managing Director and Global Head of Marketing, Oaktree. "Through the Fund, individual investors and financial professionals can access Oaktree's broad and specialized array of credit strategies. These strategies are guided by the same fundamental value-driven approach that has served Oaktree clients for over 22 years."
The Fund's portfolio manager is Oaktree's Bruce Karsh, Co-Chairman and CIO, who leads the firm's multistrategy credit investment committee.
About Eaton Vance and NextShares Solutions, LLC
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 $419.3 billion as of September 30, 2017, offering individuals and institutions a broad array of investment strategies and wealth management solutions. For more information, visit eatonvance.com.
NextShares Solutions LLC (NextShares Solutions) 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.
Oaktree is a leader among global investment managers specializing in alternative investments, with $100 billion in assets under management as of September 30, 2017. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 900 employees and offices in 18 cities worldwide. For additional information, please visit Oaktree's website at oaktreecapital.com.
The information in this press release is not complete and may be changed. These securities may not be sold until the registration statement filed with the U.S. Securities and Exchange Commission is effective. This press release is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale would be prohibited.
About Risk: Investments rated below investment grade (typically referred to as "junk") are generally subject to greater price volatility and illiquidity than higher-rated investments. An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. 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. In emerging countries, these risks may be more significant. As interest rates rise, the value of certain income investments is likely to decline. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of nonpayment of principal and interest. 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 in a fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description.
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 normally bought and sold in the secondary market through a broker, and may not be individually purchased or redeemed from the fund. In the secondary market, buyers and sellers transact with each other, rather than with the fund. 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. 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. Redemptions may be effected partially or entirely in cash when in-kind delivery is not practicable or deemed not in the best interests of shareholders. A fund's basket is not intended to be representative of the fund's current portfolio positions and may vary significantly from current positions. 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 and ETFs.
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 sellers 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 have a limited 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. Commercial success of NextShares requires completion of enabling implementation technology and acceptance by market participants, which cannot be assured.
NextShares™ is a trademark of NextShares Solutions LLC. All rights reserved.
Before investing, investors should consider carefully the investment objectives, risks, charges and expenses of a NextShares fund. This and other important information is contained in the Fund's prospectus and summary prospectus, which can be obtained from a financial advisor. Prospective investors should read the prospectus carefully before investing.
Eaton Vance NextShares distributed by Foreside Fund Services, LLC.
SOURCE Eaton Vance Management