Ivy Funds Joins NextShares in Plan to Introduce Exchange-Traded Managed Funds
July 21 2015 - 7:30AM
Business Wire
Ivy Investment Management Company, a subsidiary of Waddell &
Reed Financial, Inc. (NYSE: WDR) has entered into a preliminary
agreement with Navigate Fund Solutions LLC (Navigate), a subsidiary
of Eaton Vance Corp. (NYSE: EV), to support the launch by Ivy Funds
of a family of NextShares™ exchange-traded managed funds.
“Adapting to evolutions in the product landscape has always been
one of Ivy’s priorities, as we seek to deliver our investment
products in structures that the marketplace may desire,” said
Thomas W. Butch, president and CEO of Ivy Funds Distributor, Inc.,
and executive vice president of Ivy’s parent firm Waddell &
Reed Financial, Inc. “NextShares can be a progressive way to offer
Ivy’s actively managed products.” Butch indicated that NextShares
also may be considered for Waddell & Reed Advisors Funds,
Waddell & Reed’s other retail fund family.
NextShares are a new type of actively managed fund designed to
have built-in cost and tax efficiencies. Like actively managed
mutual funds, they are managed by an investment team that seeks to
outperform a benchmark index. However, unlike conventional
exchange-traded funds (ETFs), NextShares are designed to protect
the confidentiality of fund trading information and provide buyers
and sellers of shares with transparency and control of their
trading costs. As a result, NextShares potentially offer attractive
features unavailable in other investment products. Learn more by
visiting www.nextshares.com.
"Ivy Funds is an innovative and respected investment manager
that we’re pleased to add as a NextShares partner," said Stephen W.
Clarke, president of Navigate. "Together with broker-dealers, we
seek to evolve the delivery of active management to a
higher-performing and more efficient fund structure."
Among other things, the Ivy Funds launch of NextShares is
subject to securing exemptive order relief from the Securities and
Exchange Commission to allow it to manage exchange-traded managed
funds, as well as the development of implementation technology by
broker/dealers and other market participants.
About Ivy Funds
Ivy Funds offers a broad fund lineup covering all major asset
categories, including international and domestic equity funds,
specialty funds, fixed-income funds and money market funds.
Ivy Investment Management Company (IICO) is an affiliate of
Waddell & Reed Financial, Inc. (Waddell & Reed). Through
its subsidiaries, Waddell & Reed provides investment management
and financial planning services to clients throughout the U.S. and
internationally. Waddell & Reed had approximately $123 billion
in total assets under management at March 31, 2015. IICO serves as
investment advisor to the Ivy Funds. Ivy Funds Distributor, Inc. is
principal underwriter and distributor to the Ivy Funds. For more
information, visit www.ivyfunds.com.
About Navigate and Eaton Vance
Navigate is a wholly owned subsidiary of Eaton Vance Corp.
formed to develop and commercialize NextShares. Aspects of the
operation of NextShares are protected intellectual property owned
by Navigate.
Eaton Vance Corp. is one of the oldest investment management
firms in the United States, with a history dating to 1924. Eaton
Vance and its affiliates managed $307.3 billion in assets as of
June 30, 2015, offering individuals and institutions a broad array
of investment strategies and wealth management solutions. For more
information, see eatonvance.com.
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 agreement described herein is preliminary in
nature and non-binding, so therefore may not be executed. The
launch of Ivy NextShares funds by Ivy Funds 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. Like mutual funds, Ivy NextShares will not
offer investors the opportunity to buy and sell intraday based on
current (versus end-of-day) determinations of fund value. Ivy
NextShares trade execution prices will fluctuate based on changes
in NAV and may vary significantly from anticipated levels during
periods of market volatility. Although limit orders may be used to
control trading costs, they cannot be used to control or limit
trade execution prices. There can be no guarantee that an active
trading market for Ivy NextShares will develop or be maintained, or
that their listing will continue unchanged. Buying and selling Ivy
NextShares may require payment of brokerage commissions and expose
transacting shareholders to other trading costs. Market trading
prices of Ivy NextShares may be above, at or below NAV, will
fluctuate in relation to NAV based on supply and demand in the
market for shares and other factors, and may vary significantly
from NAV. The return on a shareholder’s Ivy 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. The performance of actively managed Ivy NextShares will
depend in part on the portfolio managers’ successful application of
analytical skill and investment judgment. An Ivy NextShares 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 Ivy NextShares. Investors in Ivy
NextShares should have a long-term investment perspective and be
able to tolerate potentially sharp declines in value. An investment
in Ivy NextShares 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.
All investments are subject to risks, including possible loss of
principal.
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version on businesswire.com: http://www.businesswire.com/news/home/20150721005223/en/
Ivy FundsInvestor Contact:Nicole Russell, 913-236-1880VP,
Investor RelationsorMedia Contact:Roger Hoadley, 913-236-1993VP,
Communications
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