BOSTON, April 27, 2015 /PRNewswire/ -- Eaton Vance Management (Eaton Vance) and Navigate Fund Solutions LLC (Navigate), wholly owned subsidiaries of Eaton Vance Corp. (NYSE: EV), today announced the filing by The NASDAQ Stock Market LLC (Nasdaq) with the U.S. Securities and Exchange Commission (SEC) of a proposed rule change to list and trade under Nasdaq Rule 5745 the shares of the below-listed NextShares™ exchange-traded managed funds (Funds):
Eaton Vance Balanced NextShares™
Eaton Vance Bond NextShares™
Eaton Vance 5-to-15 Year Laddered Municipal Income NextShares™
Eaton Vance Floating-Rate & High Income NextShares™
Eaton Vance Global Dividend Income NextShares™
Eaton Vance Global Macro Absolute Return NextShares™
Eaton Vance Government Obligations NextShares™
Eaton Vance Growth NextShares™
Eaton Vance High Income Opportunities NextShares™
Eaton Vance High Yield Municipal Income NextShares™
Eaton Vance Large-Cap Value NextShares™
Eaton Vance National Municipal Income NextShares™
Eaton Vance Richard Bernstein All Asset Strategy NextShares™
Eaton Vance Richard Bernstein Equity Strategy NextShares™
Eaton Vance Small-Cap NextShares™
Eaton Vance Stock NextShares™
Parametric Emerging Markets NextShares™
Parametric International Equity NextShares™
Nasdaq initially filed the rule change request on April 10, 2015 and the SEC gave public notice on April 23, 2015. No later than 90 days after publication of the notice in the Federal Register, the SEC will either approve or disapprove the proposed rule change or institute proceedings to determine whether the proposed rule change should be disapproved.
The SEC approved Nasdaq Rule 5745 governing the listing and trading of NextShares in November 2014. Under Rule 5745, Nasdaq must receive separate approval to list and trade each NextShares fund. The Funds are the first NextShares funds for which Nasdaq is requesting listing and trading approval.
"This action by Nasdaq is a further step toward the approval and launch of NextShares," said Thomas E. Faust Jr., Chairman and Chief Executive Officer of Eaton Vance Corp.
"The Nasdaq filing provides a template for future rule change requests submitted for NextShares funds to be offered by other leading managers," said Stephen W. Clarke, President of Navigate.
Eaton Vance will be investment adviser to each Fund. Eaton Vance affiliate Parametric Portfolio Associates LLC will subadvise the two Parametric-branded Funds and Richard Bernstein Advisors LLC, an independent investment advisory firm, will subadvise Eaton Vance Richard Bernstein All Asset Strategy NextShares™ and Eaton Vance Richard Bernstein Equity Strategy NextShares™.
In December 2014, the SEC issued an order granted Eaton Vance and the Funds' series trusts (Trusts) exemptive relief to permit the offering of NextShares. Each Trust is registered with the SEC as an open-end investment company and has filed a registration statement on Form N-1A, which must be declared effective prior to Fund launch.
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. NextShares offer significant advantages over both mutual funds and ETFs as vehicles for active investment strategies. A range of leading asset managers have announced plans to offer NextShares funds to their investors. Learn more by visiting nextshares.com.
About Navigate and Eaton Vance
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 to 1924. Eaton Vance and its affiliates managed $303.4 billion in assets as of March 31, 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 information purposes only and is not intended to constitute, and should not be construed as, an offer to sell securities. The launch of NextShares funds by Eaton Vance is conditional upon final 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. Prices of all NextShares trades will be linked to the fund's next daily net asset value per share (NAV) and determined after NAV is computed. NextShares will not offer investors the opportunity to buy and sell at prices determined intraday. 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 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. 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.