Eaton Vance lands first outside firm to license 'nontransparent' NextShares

Eaton Vance lands first outside firm to license 'nontransparent' NextShares
American Beacon signs on to structure that combines aspects of mutual funds and ETFs.
JAN 14, 2015
Eaton Vance Corp. is getting its first partner in a concept to bring to exchanges actively managed funds that don't disclose their holdings. American Beacon Advisors Inc. said Thursday that it would license NextShares, a hybrid investment product that combines characteristics of exchange-traded and mutual funds. The firm, based in Fort Worth, Texas, manages $57.2 billion in assets. Last year, the NextShares technology became the first of its kind to win regulatory approval. Managers of the funds are not required to disclose their underlying holdings daily, as is the case with many ETFs. The transparency of funds' investment strategies had become an obstacle to active management's gaining traction in the market for ETFs.

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