GAMCO Investors, Inc. Licenses ActiveShares℠ Exchange-Traded Fund Structure
August 28 2017 - 2:00PM
Business Wire
GAMCO Investors, Inc. (“GAMCO”) (NYSE:GBL) today announced that
it has entered into a license agreement with Precidian Investments
LLC (“Precidian”) to support the launch by GAMCO of a family of
ActiveShares℠ actively-managed, semi-transparent exchange-traded
funds (ETFs).
The Precidian model, subject to applicable regulatory approvals,
would allow GAMCO to deliver actively-managed investment strategies
in an ETF vehicle without disclosing holdings on a daily basis.
Precidian is currently seeking approval for use of ActiveShares℠
from the SEC.
“The ActiveShares℠ structure gives Gabelli Funds access to a new
set of investors as the actively-managed ETF market grows,” said
Mario J. Gabelli, Chairman and CEO of GAMCO. “Our agreement with
Precidian adds another tax-efficient structure for delivery of our
strategies.”
“We are honored to work with GAMCO Investors to provide an
innovative investment solution in the form of
an actively-managed, periodically-disclosed ETF,” said
Precidian CEO Dan McCabe. “The ActiveShares℠ ETF structure not
only provides clients with expanded vehicle options, but it also
protects the integrity of the underlying portfolio serving the best
interest of the investor.”
GAMCO joins JP Morgan Asset Management, Blackrock, Capital
Research, ClearBridge, Royce and Nationwide in licensing
Precidian’s intellectual property. Precidian’s ActiveShares℠
structure seeks to combine the most beneficial aspects and
protections of the traditional mutual fund with the efficiencies
and flexibilities of an ETF. The patented ETF structure seeks to
provide asset managers with the ability to generate alpha without
daily disclosure of their proprietary strategies while
simultaneously creating significant improvements in tax efficiency,
manager flexibility and lower operating costs.
About GAMCO
GAMCO Investors, Inc. through its subsidiaries, manages private
advisory accounts (GAMCO Asset Management Inc.) and open-end and
closed-end funds (Gabelli Funds, LLC). As of June 30, 2017, GAMCO
had $41.4 billion in assets under management. For further
information please visit www.gabelli.com.
About Precidian Investments
Precidian Investments is an industry leader in the creation of
innovative financial products, specializing in exchange-traded fund
(ETF) and mutual fund development, and associated trading and
pricing technologies. Precidian designs and develops
next-generation tools for the mutual fund industry, ETF providers
and leading financial services institutions to meet the needs of
today’s more sophisticated investors. Expertise in product
development, trading, clearance, sales, technology, and securities
law enables Precidian to more efficiently design and build
cutting-edge financial instruments.
This press release is for information purposes only and is not
intended to constitute, and should not be construed as, an offer to
sell securities. The launch of ActiveShares funds by GAMCO is
conditional upon regulatory approval, the likelihood and timing of
which cannot be predicted. Commercial success also requires
completion of enabling implementation technology and acceptance by
market participants, which cannot be assured. An ActiveShares fund
is not a complete investment program, and there is no guarantee
that it will achieve its investment objective. It is possible to
lose money on an investment in ActiveShares. Investors in
ActiveShares should have a long-term investment perspective and be
able to tolerate potentially sharp declines in value. An investment
in ActiveShares is not a deposit in a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any
other government agency, entity or person.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170828005807/en/
GAMCO Investors, Inc.Chris Marangi, 914-921-5219Co-Chief
Investment Officer
Gamco Investors (NYSE:GBL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Gamco Investors (NYSE:GBL)
Historical Stock Chart
From Apr 2023 to Apr 2024