NEWTOWN, Pa., April 2, 2020 /PRNewswire/ -- Precidian
Investments commented today on the launch of American Century
Investment's (ACI) two new Actively Managed ETFs utilizing their
proprietary ActiveShares® structure. Legg
Mason, Inc. (NYSE: LM) currently owns a 19.9% stake in Precidian.
"We are truly appreciative of ACI's perseverance in making
ActiveShares® a reality," stated Dan
McCabe, Chief Executive Officer of Precidian Investments.
"I'd like to thank ACI CEO Jonathan
Thomas, as well as Ed
Rosenberg, Matt Lewis,
Cleo Chang, and Rene Casis for their tireless efforts and
unwavering support in bringing the launch of these funds to
fruition."
"I'd also like to thank our ETF community, but notably, the
Cboe, BNY Mellon, State Street Bank, JP Morgan, Mizuho, Cantor
Fitzgerald, Rosenblatt Securities, Citadel, GTS Mischler and
Foreside, for their commitment to the ActiveShares® model."
"We are incredibly proud of this structure, which we believe
combines the best attributes of active management with the
additional flexibilities of an ETF wrapper. ActiveShares should
provide a much better experience for both investors and asset
managers." he continued.
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.
Potential benefits include:
- Investors: Lower operating costs, improved tax
efficiency, lower potential cash drag, benefits of exchange
trading, lower liquidity charges and eliminates multiple share
classes.
- Active managers: No changes in day-to-day
responsibilities, but greatly improved flexibility. Significant
improvement in tax efficiency enables more effective implementation
without fear of front-running or loss of intellectual
property.
- Markets: Diversifies the markets away from concentration
in index-based ETFs and associated price discovery challenges,
supporting goals of regulators. The availability of additional
investment capabilities within the ETF structure can lead to more
robust asset allocation models.
"We believe these features, added to the ETF landscape, will
provide investors significant benefits, including reduced fees and
tax advantages," McCabe said.
About Precidian Investments
An industry leader in the creation of innovative financial
products, Precidian specializes in ETF and mutual fund development,
and associated trading and pricing technologies. We design and
develop next-generation tools for the mutual fund industry, ETF
providers and leading financial services institutions to meet the
needs of today's more sophisticated investors. Precidian
Investments' expertise in product development, trading, clearance,
sales, technology, and securities law enables us to more
efficiently design and build cutting-edge financial
instruments.
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SOURCE Legg Mason, Inc.