The RBB Fund (RBB) has signed an agreement with Precidian Investments to offer ActiveShares, its patented ETF technology.
The RBB Fund (RBB) has signed an agreement with Precidian Investments to offer ActiveShares, its patented ETF technology.This relationship enhances RBB’s turnkey platform for managers looking to access the ActiveShares technology, and further distinguishes RBB’s unique position within the marketplace – one that is completely independent of any bank sponsor or service provider.
“We are thrilled to partner with Precidian,” says RBB Chairman Arnold Reichman. “This relationship positions RBB at the forefront of newest innovations in ETF growth, and offers our current and prospective advisors a high quality option in the space.”
Designed to fit seamlessly into the existing ETF ecosystem, ActiveShares offers investors and managers a far more flexible structure than currently exists with today’s mutual funds or by other recently introduced active ETF models. Potential benefits include:
• Investors: Lower operating costs, pricing transparency, improved tax efficiency, benefits of exchange trading, lower liquidity charges and elimination of multiple share classes.
• Active managers: No changes in day-to-day responsibilities, but greatly improved flexibility. Significant improvement in tax efficiency, potential elimination of cash drag, lower trading costs and quarterly disclosure which enables more effective implementation without fear of front-running or loss of intellectual property.
• Markets: A per-second valuation of the actual portfolio is disseminated to all investors equally. In-kind creation and redemption through a trusted agent ensures an efficient arbitrage. The availability of additional investment capabilities within the ETF structure will lead to more robust asset allocation models.
“We are excited to welcome RBB to the rapidly growing list of asset managers and white label platforms who have chosen our industry leading solution,” says Stuart Thomas, Founding Principal of Precidian Investments. “Offering investors access to myriad investment strategies through a lower cost, more tax efficient structure than mutual funds while simultaneously providing pricing transparency and exchange access, has the potential to enhance investor experience and returns.”
