Ivy has expanded the way investors can access active investment management that is packaged with the tax and cost efficiencies found in exchange trading.
Ivy Investment Management Company (IICO) today introduced its first three Ivy NextShares as part of a planned lineup of NextShares exchange-traded managed funds. IICO becomes among the first to offer the new structure.
“NextShares represent another step in our effort to provide clients with unique, progressive investment products. We are pleased to be one of the first firms to bring them to market,” said Thomas W. Butch, president and CEO of Ivy Distributors, Inc. “Ivy NextShares offer the potential for competitive investment returns by applying the strength of Ivy’s experienced portfolio managers and proprietary investment research in a cost-effective and tax-effective structure.”
The three Ivy NextShares, effective today, include:
“We congratulate Ivy on the launch of their three NextShares funds,” said Stephen W. Clarke, president of NextShares Solutions, LLC. “Ivy is leading the evolution of active fund investing to a potentially better-performing, lower cost and more tax efficient structure.”
NextShares, an innovative way to invest in actively managed strategies, offer the potential for benchmark-beating returns by applying their managers’ proprietary investment research. As exchange-traded products, NextShares may offer cost and tax efficiencies that have the potential to enhance shareholder returns. NextShares may invest across all fund asset classes and are expected to be offered by a range of well-known asset managers.
NextShares are currently available through Folio Investing and Folio Institutional, leading online brokerage services. Interactive Brokers Group, an automated global electronic broker and market maker, and Envestnet, a provider of unified wealth management technology and services, have both announced their intentions to make NextShares available on their platforms in the near term. In July 2016, UBS Financial Services announced plans to become the first full-service wealth manager to offer NextShares through its financial advisor network in early 2017.
The first NextShares funds were launched by Eaton Vance Management earlier this year, at which time they began trading on the Nasdaq Stock Market LLC. In December 2014, the SEC granted exemptive relief to permit the offering of NextShares exchange-traded managed funds, and a year later, they declared effective the registration statements for NextShares funds sponsored by Eaton Vance Management. The Eaton Vance order prescribed that a short-form application could be used for future exemptive relief requests submitted by other advisers that agreed to abide by the terms and conditions of the Eaton Vance order. IICO used the short-form to secure the appropriate approvals from the SEC to launch Ivy NextShares.