Interactive Brokers Group To Offer NextShares™ Exchange-Traded Managed Funds
May 12 2016 - 9:15AM
Business Wire
Interactive Brokers Group, Inc. (NASDAQ: IBKR), an automated
global electronic broker and market maker, today announced plans to
offer NextSharesTM exchange-traded managed funds (NextShares) to
retail investors and financial professionals through its investing
and trading platforms.
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NextShares are a new way to invest in actively managed
strategies. Because they are actively managed, NextShares offer the
potential for benchmark-beating returns by applying their manager’s
proprietary investment research. Because they trade on an exchange,
NextShares may offer cost and tax efficiencies that can enhance
shareholder returns. NextShares were developed by NextShares
Solutions LLC, an affiliate of Eaton Vance Corp. (Eaton Vance), and
are expected to be offered by a range of well-known asset managers
and across fund asset classes. The first NextShares funds began
trading on the Nasdaq Stock Market LLC earlier this year.
“Offering high-quality services at a lower cost and providing
our customers with compelling investment opportunities are integral
features of our vision,” said Thomas Peterffy, Chairman, Founder
and Chief Executive Officer, Interactive Brokers Group, Inc.
“NextShares support this vision and can help investors meet their
long-term investment goals.”
“The potential performance and tax advantages of NextShares and
the advanced trading technology and customer focus of Interactive
Brokers are a powerful combination,” said Stephen W. Clarke,
President of NextShares Solutions. “NextShares on the Interactive
Brokers platform should be a highly competitive alternative to
mutual funds offered on fund supermarkets. We are proud to work
together to provide greater access to NextShares.”
The NextShares structure is broadly applicable across all asset
classes in which mutual funds invest. Eaton Vance launched an
initial three NextShares funds in the first quarter of this year
and expects to introduce additional funds later this year. Ivy
Investments (Ivy) has announced plans to launch its first three
NextShares funds by late summer. Including Eaton Vance and Ivy, a
dozen fund sponsors have indicated their intent to offer NextShares
funds by filing exemptive applications with the U.S. Securities and
Exchange Commission and entering into preliminary agreements with
NextShares Solutions.
About Interactive Brokers Group, Inc.
Interactive Brokers Group, Inc., together with its subsidiaries,
is an automated global electronic broker that specializes in
catering to financial professionals by offering state-of-the-art
trading technology, superior execution capabilities, worldwide
electronic access, and sophisticated risk management tools at
exceptionally low costs. The brokerage trading platform utilizes
the same innovative technology as the Company's market making
business, which specializes in routing orders and executing and
processing trades in securities, futures, foreign exchange
instruments, bonds and funds on more than 100 electronic exchanges
and trading venues around the world. As a market maker, we provide
liquidity at these marketplaces and, as a broker, we provide
professional traders and investors with electronic access to
stocks, options, futures, forex, bonds and mutual funds from a
single IB Universal Account™. Employing proprietary software on a
global communications network, Interactive Brokers is continuously
integrating its software with a growing number of exchanges and
trading venues into one automatically functioning, computerized
platform that requires minimal human intervention.
About NextShares Solutions and Eaton Vance
NextShares Solutions LLC is a wholly owned subsidiary of Eaton
Vance formed to develop and commercialize NextShares. Aspects of
the operation of NextShares are protected intellectual property
owned by NextShares Solutions. For more information, visit
nextshares.com.
Eaton Vance (NYSE: EV) is a leading global asset manager whose
history dates to 1924. With offices in North America, Europe, Asia
and Australia, Eaton Vance and its affiliates managed $315.1
billion in assets as of March 31, 2016, offering individuals and
institutions a broad array of investment strategies and wealth
management solutions. For more information, visit
eatonvance.com.
The information contained herein is provided for informational
purposes only, is not intended as investment or tax advice, and
does not constitute a solicitation of an offer to buy or sell
specific securities.
Shares of NextShares funds are normally bought and sold in the
secondary market through a broker, and may not be individually
purchased or redeemed from the fund. In the secondary market,
buyers and sellers transact with each other, rather than with the
fund. These transactions do not affect the fund or its investments.
When a NextShares fund does issue or redeem shares, the
transactions are made through designated authorized participants
and are normally in kind when practicable, meaning that the fund
receives or delivers securities rather than cash. By transacting in
kind, a NextShares fund can lower its trading costs and enhance
fund tax efficiency by avoiding forced sales of securities to meet
redemptions. As exchange-traded securities, NextShares can operate
with low transfer agency expenses by utilizing the same highly
efficient share processing system as used for exchange-listed
stocks.
Market trading prices of NextShares are linked to the fund’s
next-computed net asset value (NAV) and will vary from NAV by a
market-determined premium or discount, which may be zero. Buyers
and sellers of NextShares will not know the value of their
purchases and sales until after the fund’s NAV is determined at the
end of the trading day. Market trading prices may vary
significantly from anticipated levels. NextShares do not offer
investors the opportunity to buy and sell intraday based on current
(versus end-of-day) determinations of fund value. NextShares trade
execution prices will fluctuate based on changes in NAV. Although
limit orders may be used to control trading costs, they cannot be
used to control or limit trade execution prices. As a new type of
fund, NextShares have a limited operating history and may initially
be available through a limited number of brokers. There can be no
guarantee that an active trading market for NextShares will develop
or be maintained, or that their listing will continue unchanged.
Buying and selling NextShares may require payment of brokerage
commissions and expose transacting shareholders to other trading
costs. Frequent trading may detract from realized investment
returns. The return on a shareholder’s NextShares investment will
be reduced if the shareholder sells shares at a greater discount or
narrower premium to NAV than he or she acquired the shares.
NextShares funds issue and redeem shares only in specified creation
unit quantities in transactions by or through authorized
participants. In such transactions, a fund issues and redeems
shares in exchange for the basket of securities, other instruments
and/or cash that the fund specifies each business day. The basket
is not intended to be representative of the fund’s current
portfolio positions and may vary significantly from current
positions.
NextSharesTM is a trademark of NextShares Solutions LLC. All
rights reserved.
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version on businesswire.com: http://www.businesswire.com/news/home/20160512005750/en/
For Interactive Brokers Group, Inc.Caitlin Duffy,
203-913-1369media@interactivebrokers.comorRobyn Tice,
617-672-8940rtice@nextshares.com
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