ALPS To Launch NextShares Via Turnkey ALPS ETMF Trust
By DailyAlts Staff Denver-based ALPS is the latest company to license Eaton Vance’s NextShares-branded exchange-traded managed funds (“ETMFs”) via Eaton Vance’s Navigate Fund Solutions subsidiary. The agreement between ALPS and Eaton Vance runs both ways, though: The ALPS NextShares ETMFs will be launched through the ALPS ETMF Trust, which is designed to provide turnkey solutions for investment managers looking to launch new NextShares Funds. “It’s clear to us that NextShares can offer certain advantages as vehicles for active investment strategies,” said ALPS CEO Ned Burke, in a recent statement. “As pioneers in product development, we look forward to working with Navigate to bring this new product initiative to the marketplace.” “We believe that the improved performance and tax efficiency of NextShares is what fund investors have been waiting for,” said Stephen W. Clarke, President of Navigate Fund Solutions, in the same press release. “We look forward to working with ALPS to introduce this game-changing idea to investors and the financial advisors who serve them.” NextShares, which received regulatory approval in November 2014, facilitate active management within funds that trade intraday, much like shares of stock. Unlike mutual funds, which can only be bought or sold at the end of each trading day, ETMFs trade when the stock market is open. But unlike ETFs and shares of stock, ETMFs aren’t price in “dollars and cents” per share, but instead, at a premium or discount to the net assets of the fund. This quirk allows ETMF managers to avoid disclosing their holdings on a daily basis, which would undermine active-management performance. ALPS has been steadily growing its presence in the industry in 2015. In April, the firm acquired Red Rocks Capital , a firm specializing in listed private equity funds. Then in July, ALPS launched a pair of equal-weighted (“EW”) ETF products that offered a “twist” on the conventional EW approach by equalizing weightings among sectors. The launch date of ALPS’s first NextShares products is unknown at this time. According to a statement from ALPS, the timing will depend on final regulatory approval and “market readiness.” For more information, visit nextshares.com . Share this article with a colleague