NEW YORK, May 21, 2019 /PRNewswire/ -- Precidian
Investments today announced that the U.S. Securities and Exchange
Commission (SEC) granted exemptive relief for Precidian's
non-transparent exchange-traded fund (ETF) structure,
ActiveShares®.
Once approved for listing and trading on a national stock
exchange, funds utilizing the ActiveShares intellectual property
will be able to offer semi-transparent active portfolios with the
tax efficiency, cost effectiveness and intraday trading
capabilities of an ETF. While there are structural differences
between ActiveShares and traditional ETFs, ActiveShares is an
enhanced version of the traditional ETF structure.
"ActiveShares will enable active managers to offer new and
existing strategies in an ETF vehicle, combining the best of active
management with the many benefits of an ETF," said Dan McCabe, CEO of Precidian. "ActiveShares will
fit seamlessly onto existing platforms and into investment models
that utilize ETFs. For active managers that had been hesitant to
utilize transparent ETF structures due to concerns of infringement,
a non-transparent structure is the option they have been waiting
for."
Legg Mason, a global asset
manager, holds a minority stake in Precidian, and is working with
its investment affiliate, ClearBridge Investments, to launch
products utilizing ActiveShares.
Precidian currently has signed contracts with 10 asset
management firms that make up approximately 25% of the active U.S.
equity mutual fund market. Precidian is currently in discussions
with a number of other firms interested in licensing
ActiveShares.
About Precidian
Precidian Investments® designs and
develops 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's
expertise in product development, trading, clearance, sales,
technology and securities law enables the company to more
efficiently design and build cutting-edge financial instruments. We
pride ourselves on our ability to create novel, state-of-the-art
financial products that address specific investor needs and
differentiate us from the competition.
About Legg Mason
Guided
by a mission of Investing to Improve Lives™, Legg Mason helps investors globally achieve
better financial outcomes by expanding choice across investment
strategies, vehicles and investor access through independent
investment managers with diverse expertise in equity, fixed income,
alternative and liquidity investments. Legg
Mason's assets under management are $768 billion as of April
30, 2019. To learn more, visit our website, our
newsroom, or follow us on LinkedIn, Twitter, or Facebook.
This release contains forward-looking statements subject to
risks, uncertainties and other factors that may cause actual
results to differ materially. For a discussion of these risks and
uncertainties, see "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in
Legg Mason's Annual report on Form
10-K for the fiscal year ended March 31,
2018 and, in the Company's, quarterly reports on Form
10-Q.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/precidian-investments-receives-exemptive-relief-from-the-sec-for-its-activeshares-intellectual-property-300854377.html
SOURCE Legg Mason, Inc.