Victory Capital has made a preliminary agreement with Navigate Fund Solutions to support the launch of a family of NextShares exchange-traded managed funds.
“NextShares are a natural extension of our multi-boutique investment model,” says David Brown, Chairman and Chief Executive Officer of Victory Capital. “Our goal is to deliver best-in-class investment solutions managed by autonomous investment franchises and NextShares will enable us to provide our clients with an actively managed vehicle that features lower costs and greater tax efficiencies.”
NextShares are a new type of actively managed fund seeking to provide a lower cost structure, enhanced tax efficiency, and potentially better performance for investors. Like actively managed mutual funds, NextShares are managed by an investment team using a specific investment philosophy and approach that seeks to outperform a benchmark index over time. Like exchange-traded products, NextShares also have built-in cost and tax advantages. Additionally, compared to conventional exchange-traded funds, NextShares provide buyers and sellers of shares with transparency of their trading costs and protect the confidentiality of fund trading information. NextShares were developed by Navigate Fund Solutions LLC, a subsidiary of Eaton Vance Corp., and have been licensed to a range of leading asset managers who plan to offer NextShares funds to their investors.
“We welcome Victory Capital to the NextShares family and we look forward to partnering with them to offer this new fund structure with potentially significant benefits for financial advisors and their clients,” says Stephen W Clarke, President of Navigate. “Their investment experience and strong commitment to serving their clients will benefit the introduction of NextShares to the marketplace.”