It looks like Tom Faust
and his team will get the chance to offer their next-generation mutual fund product structure to the world.
Yesterday the Securities and Exchange Commission (SEC
that, unless the commission orders a hearing, the regulatory agency is poised to grant Eaton Vance's
] exemptive relief request to launch "exchange-traded managed funds" [see the SEC's notice
]. The brand, Faust reveals, will be NextShares
. He has 18 ETMFs ready to go, all designed to trade in real time like an ETF but without an ETF's usual requirement of disclosing holdings daily.
The Financial Times
and the Wall Street Journal
all covered the news.
Yet Faust can't launch the NextShares just yet. The SEC would also have to approve NASDAQ's proposed rule governing the listing and trading of the ETMFs. The SEC would have to approve registration statements for the specific funds. And the commission also could order a hearing on the ETMFs -- anyone who wants to talk to the commission about Eaton Vance's idea has to speak up by December 1.
Eaton Vance first filed
for the ETMFs in March 2013, and they want other fundsters to launch ETMFs, too. Eaton Vance affiliate Navigate Fund Solutions
holds the intellectual property related to the ETMFs, intellectual property that Eaton Vance has asked
for permission to license to others.
Neil Anderson, Managing Editor
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