LocalShares is marking the year end of the Nashville Area ETF (NASH), the first city-based exchange-traded fund in the US, with a 14.6 per cent performance gain.
The fund’s annual shareholders meeting is on 21 August at the Hutton Hotel, and will feature a panel of CEOs of holdings in the fund led by Tennessee State Commissioner of Economic and Community Development Bill Hagerty and including Bill Carpenter, CEO of LifePoint Hospitals; Damon Hininger, CEO of Corrections Corporation and America; and Colin Reed, CEO of Ryman Hospitality Corporation.
The fund's investment adviser has agreed to waive fees and expenses so that the fund's total annual operating expenses will not exceed 0.49 per cent. This fee waiver will remain in effect until 31 December 2016 and may be extended thereafter by the adviser in its sole discretion.
NASH debuted on the New York Stock Exchange on 1 August 2013 with an opening share price at USD25 per share, creating an investment opportunity in a basket of publicly traded companies headquartered in greater Nashville. At the close of the first year, the Nashville Area ETF has realised a 14.6 per cent cumulative return.
Initially listed at USD25 per share, NASH closed at USD28.44 at the end of the trading day, on 31 July, up USD3.44 since inception (plus USD0.20 of income and gain distributions during the year).
The basket of 23 companies represents diverse industry sectors ranging from healthcare, to building products, to consumer retailers. The fund has grown to USD7,047,500 in assets under management.
"Certain US regions provide strong economic opportunity for the companies based there, which is why corporate relocation to these markets continues to climb," says William S Decker of LocalShares. "Nashville is one such economy benefitting from the markedly low taxes of the state of Tennessee and other attributes. We are pleased with the performance of the fund, which we believe reflects both the vitality of this specific economy and the fact that geographic eco-systems like Nashville add competitive value to companies based there."