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Eaton Vance plans to launch 18 such
non-transparent ETFs, called the exchange-traded managed funds (ETMF),
which will be listed and traded on an exchange.
Eaton Vance said its unit Navigate Fund LLC will offer ETMFs
called "NextShares," a new type of open-ended fund that will
list and trade its shares on an exchange at prices directly
linked to the fund's next-determined daily net asset value.
"With the introduction of NextShares, investors will, for the
first time, be able to access active strategies through a
structure that provides the cost and tax efficiencies of an
exchange-traded fund, while protecting the confidentiality of
fund trading information," Eaton Vance CEO Thomas Faust said in
a statement
Eaton Vance filed for an exemptive relief to offer
exchange-traded managed funds on March 27, 2013.
The move by the SEC is in contrast to its decision taken last
month, where it denied similar proposals from BlackRock Inc and
Precidian Investments to create non-transparent ETFs.
The regulators also rejected a proposal by the NYSE to list
"non-transparent" ETFs last month, citing reasons like
non-disclosed funds would lead to wide bid-ask spreads and cause
intraday market prices to significantly deviate from their net
asset values.
Other firms like State Street Corp, Invesco Ltd's PowerShares
and Fidelity Investments are also seeking permission from the
SEC to offer exchange-traded funds.
(Reporting by Rishika Sadam in Bangalore and Ashely Lau in New
York; Editing by Gopakumar Warrier)
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