BEDMINSTER, N.J., Sept. 26, 2018 /PRNewswire/ -- Precidian Investments, LLC. ("Precidian") announced today that it has licensed its proprietary ActiveSharesSM actively-managed, exchange-traded funds (ETFs) structure to Nuveen, a TIAA company.
The Precidian model, subject to applicable regulatory approvals, would allow Nuveen to deliver actively-managed investment strategies in an ETF vehicle without disclosing holdings on a daily basis. Precidian is currently seeking approval for use of ActiveSharesSM from the SEC.
"As the actively-managed ETF market continues to grow, Nuveen is pleased to partner with Precidian to provide an innovative structure to offer myriad active investment strategies through an ETF," said Martin Kremenstein, Senior Managing Director, Head of ETFs at Nuveen. "Our license with Precidian adds another efficient structure for delivery of our strategies."
"We are honored to work with Nuveen in our collective effort to deliver an innovative investment solution in the form of an actively-managed, periodically-disclosed ETF," said Precidian CEO Dan McCabe. The ActiveSharesSM ETF structure provides clients with expanded vehicle options while it also protects the integrity of the underlying portfolio thereby, serving the best interest of investors."
Nuveen joins JP Morgan Asset Management, Blackrock, Capital Research, Legg Mason, American Century, GAMCO Investors, and Nationwide among others, in licensing Precidian's intellectual property. Precidian's ActiveShares℠ structure seeks to combine the most beneficial aspects and protections of the traditional mutual fund with the efficiencies and flexibilities of an ETF. The patented ETF structure seeks to provide asset managers with the ability to generate alpha without daily disclosure of their proprietary strategies while simultaneously creating significant improvements in tax efficiency, manager flexibility and lower operating costs.
Nuveen, the investment management arm of TIAA, offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has $973 billion in assets under management as of 6/30/18 and operations in 16 countries. Its affiliates offer deep expertise across a comprehensive range of traditional and alternative investments through a wide array of vehicles and customized strategies. For more information, please visit www.nuveen.com. Nuveen Securities, LLC, member FINRA and SIPC.
About Precidian Investments
Precidian Investments is an industry leader in the creation of innovative financial products, specializing in exchange-traded fund (ETF) and mutual fund development, and associated trading and pricing technologies. Precidian designs and develops next-generation tools for the mutual fund industry, ETF providers and leading financial services institutions to meet the needs of today's more sophisticated investors. Expertise in product development, trading, clearance, sales, technology, and securities law enables Precidian to more efficiently design and build cutting-edge financial instruments.
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 ActiveSharesSM funds by Nuveen is conditional upon 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. An ActiveSharesSM 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 ActiveSharesSM. Investors in ActiveSharesSM should have a long-term investment perspective and be able to tolerate potentially sharp declines in value. An investment in ActiveSharesSM 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 Legg Mason, Inc.; Precidian Investments