Bringing you live news and features since 2006 

Precidian secures approval for non-transparent ETF


Precidian Investments has just received approval on its filing for non-transparent actively managed ETFs. The firm writes that its ActiveShares structure is an enhanced version of an ETF with a blind trust and supporting processes.

While an ActiveShares portfolio is not transparent to investors, each fund will publish a verified intraday indicative value every second, as opposed to ETFs which currently quote net asset values to the marketplace every 15 seconds.

The ActiveShares funds will have AP representatives, known as trusted agents, that will provide data on portfolio holdings and use confidential accounts to do the creations and redemptions for the authorised participants.

“These features will result in a seamless addition to the ETF landscape providing significant benefits to investors in reduced fees and tax advantages,” says Precidian CEO Daniel McCabe, adding, “For this reason, the support of large, established broker-dealers has already materialised and will continue to grow.”

Precidian cites advantages to investors in the form of lower costs and greater efficiency, to active managers in terms of flexibility and tax efficiency, and to markets in terms of diversifying the ETF market, among other benefits.

Commenting on Twitter, Nutmeg’s James McManus says: “An inevitable development but we continue to favour daily disclosure for ETFs. Could this be the tipping point for active managers to use the ETF wrapper and allow investors to benefit from a secondary market?”

Latest News

Figment Europe, a provider of institutional staking infrastructure, writes that it is solidifying its presence in the heart of Europe’s..
Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..

Related Articles

Ryan McCormack, Invesco
This year sees the 25th anniversary of Invesco’s QQQ, the USD240 billion ETF – the fifth largest ETF in the...
The European ETF market achieved a record 28 per cent growth – reaching over USD1.8 trillion assets under management (AUM)...
Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by