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Tuesday, July 28, 2015|
The SEC Sends an Eaton Vance Rival Back to the ETF Drawing Board, Again
Tom Faust and his team are letting the world know as one of their rivals stumbles again.
Yesterday Eaton Vance's [profile] NextShares revealed a letter that the SEC sent this spring to Morgan Lewis Bockius' John McGuire, attorney for NextShares rival Precidian Investments. The six-page letter (available for download on NextShares.com) details SEC staffers' concerns with Precidian proposed non-transparent, active ETF structure. Eaton Vance got the letter through a Freedom of Information Act request.
A number of publications picked up Eaton Vance's announcement of its rival's setback. Those pubs include: Barron's, InvestmentNews, Reuters, and the Wall Street Journal.
Daniel McCabe, chief of Precidian, is calling the SEC's April letter "a normal part of the ETF application process."
"They ask questions, you answer, and they ask more questions," McCabe tells Reuters. "I am glad to see that Eaton Vance is so focused on us, while we focus on doing our business."
Faust is betting big on exchange-traded managed funds (ETMFs), under the NextShares brand, and is licensing the structure to many other mutual fund shops. Unlike Precidian, which now has to revise its proposal again to address the SEC's latest concerns, NextShares has received the green light from the SEC. Yet no NextShares funds, from Eaton Vance or other fund shops, are yet available.
Printed from: MFWire.com/story.asp?s=52302
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