Ivy NextSharesTM to Launch Late Summer 2016
April 20 2016 - 6:45AM
Business Wire
Ivy NextShares in three strategies to be
available
Ivy NextShares, managed by Ivy Investment Management Company, a
subsidiary of Waddell & Reed Financial, Inc., has filed a
registration statement with the Securities & Exchange
Commission to register three Ivy NextShares exchange-traded managed
funds (NextShares). Ivy becomes the first fund sponsor to submit a
filing to register NextShares since the first NextShares funds were
launched by Eaton Vance Management, which obtained the initial
exemptive order for NextShares, earlier this year.
The three Ivy NextShares, anticipated to launch by late summer
this year, include:
- Ivy Focused Growth NextShares,
which will invest primarily in a portfolio of common stocks issued
by large capitalization, growth-oriented companies that the
investment manager believes have the ability to sustain growth over
the long term. The portfolio typically will maintain a limited
number of stocks, generally 15 to 25. It will be managed by veteran
portfolio managers Daniel P. Becker, senior vice president of Ivy
Investment Management Co. (IICO), and Philip J. Sanders, senior
vice president and Chief Investment Officer of IICO.
- Ivy Focused Value NextShares,
which will invest primarily in the common stocks of companies that
the investment manager believes are undervalued, trading at a
significant discount relative to the intrinsic value of the company
as estimated by IICO and/or are out of favor in the financial
markets but have a favorable outlook for capital appreciation. The
portfolio typically will maintain a limited number of stocks,
generally 15 to 25. It will be managed by veteran portfolio manager
Matthew T. Norris, senior vice president of IICO.
- Ivy Energy NextShares, which
will invest at least 80% of its net assets in securities of
companies within the energy sector, which includes all aspects of
the energy industry, such as exploration, discovery, production,
distribution or infrastructure of energy and/or alternative energy
sources. The portfolio typically will hold 50 to 65 stocks. It will
be managed by veteran portfolio manager David P. Ginther, senior
vice president of IICO.
“Ivy NextShares is the latest step in our efforts to provide
clients with unique, progressive investment products,” said Thomas
W. Butch, executive vice president of IICO’s parent firm Waddell
& Reed Financial, Inc. “Ivy NextShares offer the potential for
competitive investment returns by applying the strength of Ivy’s
experienced portfolio managers and proprietary investment research
with a structure designed to provide cost savings. We are pleased
to partner with NextShares Solutions as one of the first firms to
seek to bring NextShares funds to market.”
NextShares are a new way to invest in actively managed
strategies. Because they are actively managed, NextShares offer the
potential for competitive investment returns by applying their
managers’ proprietary investment research. Because they trade on an
exchange, NextShares may offer cost and tax efficiencies that have
the potential to enhance shareholder returns. NextShares may invest
across all fund asset classes and are expected to be offered by a
range of well-known asset managers.
“We congratulate the Ivy Funds for being among the first firms
to bring NextShares to investors,” said Stephen W. Clarke,
president of NextShares Solutions. “They are leading the evolution
of active fund investing to a potentially better-performing, lower
cost and more tax efficient structure.”
Ivy Funds obtained an exemptive order to operate NextShares in
September 2015. The launch of Ivy NextShares is subject to listing
and trading approvals from the Securities and Exchange
Commission.
About Ivy Funds
Ivy Investment Management Company (IICO) is an affiliate of
Waddell & Reed Financial, Inc. (NYSE: WDR). Through its
subsidiaries, Waddell & Reed provides investment management and
financial planning services to clients throughout the U.S. Waddell
& Reed had approximately $104 billion in total assets under
management at December 31, 2015. IICO serves as investment advisor
to the Ivy Funds. For more information, visit www.ivyfunds.com.
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.
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, see eatonvance.com.
# # #
THE INFORMATION IN THIS PRESS RELEASE IS NOT COMPLETE AND MAY
BE CHANGED. WE MAY NOT SELL THESE SECURITIES UNTIL THE
REGISTRATION STATEMENT FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION BECOMES EFFECTIVE. THIS PRESS RELEASE IS NOT AN
OFFER TO SELL THESE SECURITIES AND IS NOT SOLICITING AN OFFER TO
BUY THESE SECURITIES IN ANY STATE WHERE THE OFFER OR SALE IS NOT
PERMITTED.
The launch of Ivy NextShares funds by IICO 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. Shares of NextShares funds are traded in
the secondary market through a broker, and may not be individually
purchased or redeemed from the fund. Buyers and sellers of shares
normally transact with each other, rather than with the fund. These
transactions do not affect the fund or its investments. When the
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 seller 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 do not have an 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. Used
with permission.
All investments are subject to risks, including possible loss
of principal. Please consider the investment objectives, risk,
charges and expenses of Ivy NextShares before investing. Please
carefully read a copy of the Ivy NextShares prospectus or summary
prospectus before investing, which contains this and other
information about Ivy NextShares; you can obtain a copy of the
prospectus or summary prospectus by calling 800-532-2780.
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version on businesswire.com: http://www.businesswire.com/news/home/20160420005264/en/
Ivy FundsRoger Hoadley, 913-236-1993VP, Director of
Communicationsrhoadley@waddell.com
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