RYE, N.Y.--(BUSINESS WIRE)--GAMCO Investors, Inc. (“GAMCO”) (NYSE:GBL) today announced that it has entered into a license agreement with Precidian Investments LLC (“Precidian”) to support the launch by GAMCO of a family of ActiveShares℠ actively-managed, semi-transparent exchange-traded funds (ETFs).
The Precidian model, subject to applicable regulatory approvals, would allow GAMCO to deliver actively-managed investment strategies in an ETF vehicle without disclosing holdings on a daily basis. Precidian is currently seeking approval for use of ActiveShares℠ from the SEC.
“The ActiveShares℠ structure gives Gabelli Funds access to a new set of investors as the actively-managed ETF market grows,” said Mario J. Gabelli, Chairman and CEO of GAMCO. “Our agreement with Precidian adds another tax-efficient structure for delivery of our strategies.”
“We are honored to work with GAMCO Investors to provide an innovative investment solution in the form of an actively-managed, periodically-disclosed ETF,” said Precidian CEO Dan McCabe. “The ActiveShares℠ ETF structure not only provides clients with expanded vehicle options, but it also protects the integrity of the underlying portfolio serving the best interest of the investor.”
GAMCO joins JP Morgan Asset Management, Blackrock, Capital Research, ClearBridge, Royce and Nationwide in licensing Precidian’s intellectual property. Precidian’s ActiveShares℠ structure seeks to combine the most beneficial aspects and protections of the traditional mutual fund with the efficiencies and flexibilities of an ETF. The patented ETF structure seeks to provide asset managers with the ability to generate alpha without daily disclosure of their proprietary strategies while simultaneously creating significant improvements in tax efficiency, manager flexibility and lower operating costs.
GAMCO Investors, Inc. through its subsidiaries, manages private advisory accounts (GAMCO Asset Management Inc.) and open-end and closed-end funds (Gabelli Funds, LLC). As of June 30, 2017, GAMCO had $41.4 billion in assets under management. For further information please visit www.gabelli.com.
About Precidian Investments
Precidian Investments is an industry leader in the creation of innovative financial products, specializing in exchange-traded fund (ETF) and mutual fund development, and associated trading and pricing technologies. Precidian 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. Expertise in product development, trading, clearance, sales, technology, and securities law enables Precidian to more efficiently design and build cutting-edge financial instruments.
This press release is for information purposes only and is not intended to constitute, and should not be construed as, an offer to sell securities. The launch of ActiveShares funds by GAMCO is conditional upon regulatory approval, the likelihood and timing of which cannot be predicted. Commercial success also requires completion of enabling implementation technology and acceptance by market participants, which cannot be assured. An ActiveShares fund is not a complete investment program, and there is no guarantee that it will achieve its investment objective. It is possible to lose money on an investment in ActiveShares. Investors in ActiveShares should have a long-term investment perspective and be able to tolerate potentially sharp declines in value. An investment in ActiveShares is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, entity or person.