FYI: While there seemed to be a wide range of news on liquid alternatives this past week (see the articles below), I think the most significant news in our industry was the Securities and Exchange Commission’s notice that it intends to grant Eaton Vance permission to launch non-transparent ETFs, which Eaton Vance is calling exchange traded managed funds, or ETMFs. This new category of funds will have the benefit of trading like an ETF on an exchange, but have the less frequent transparency of a mutual fund. In addition, the new fund structure will also eleminate many of the expenses incurred by mutual funds, hence taking on the more attractive, and low cost, expense structure of an ETF. This can ultimately be a big savings for investors as fund sponsors, over time, shift away from mutual funds and migrate toward ETMFs structures.
Regards,
Ted
http://dailyalts.com/weekend-reading-eaton-vance-etmfs-liquid-alts-currency-etfs/
Comments
Been worried actually that daily reporting for active ETFs puts them at a bit of a disadvantage to traditional mutual funds that require only quarterly reporting of holdings.
Thanks Brian (and Ted) for calling to our attention.