American Beacon Advisors is teaming up with Navigate Fund Solutions to launch a family of NextShares exchange-traded managed funds.
American Beacon also announced that it has established the American Beacon NextShares Trust and filed an application with the US Securities and Exchange Commission seeking exemptive relief to permit the firm to offer NextShares. The application incorporates by reference the terms and conditions of the exemptive order granted to Eaton Vance Management and related parties on 2 December, 2014.
“We are excited to be the first outside licensee of this innovative product,” says Gene . Needles, Jr, President and Chief Executive Officer of American Beacon. “We’ve been in close contact with Navigate throughout the development of NextShares, and are pleased to partner with Navigate as we move forward with the approval process.”
NextShares are a new type of exchange-traded product designed to provide investors with potentially better performance and enhanced tax efficiency by leveraging the best features of actively managed mutual funds and exchange-traded funds (ETFs). Like active mutual funds, NextShares seek to outperform their benchmark index and peer funds based on their manager’s investment insights and research judgments. Like ETFs, NextShares will utilise an exchange-traded structure with built-in cost and tax advantages. Compared to actively managed ETFs, NextShares offer the potential benefits of protecting the confidentiality of fund trading information and providing trading cost transparency to fund investors. Learn more by visiting nextshares.com.
“We are delighted to partner with American Beacon to support their development of a family of NextShares funds,” says Stephen W Clarke, President of Navigate. “Their commitment to investors is well demonstrated by their early embrace of this new fund structure with potentially significant shareholder benefits.”
