Recently at the annual ETF Boot Camp, Tom sat down with Stephen Clarke, CEO of Navigate Funds Solutions, to discuss the innovative way they’re approaching actively managed ETFs.
The reason for not getting in to the ETF space for a lot of active managers is due to the structure in which ETFs disclose their holdings at the end of each day – exposing trades and other strategic positions.
Navigate will be launching a line of Exchange Traded Managed Funds, that will be branded as NextShares, that aims to solve that problem. They will be licensing the approach to other active managers who would like to trade in the ETF space but protect their trades privacy.
The transparency of ETFs is a crucial part of how they price throughout the day, however, so the process and structure differ slightly from traditional ETFs. Tom and Stephen discuss the details and timeline of when you’ll see them on the market.