Latest news with #InternationalEquityAdvantage
Yahoo
3 days ago
- Business
- Yahoo
Asset Managers Aren't Playing the Dual Share Class Waiting Game
As Tom Petty sang, 'the waiting is the hardest part.' For The Kinks it was, 'So tired, tired of waiting. Tired of waiting for you.' Lou Reed, Cyndi Lauper, and Fugazi have also tackled the subject. Nobody particularly likes waiting. For asset managers waiting for the Securities and Exchange Commission to approve dual share classes, that sentiment seems to apply. Even as the regulator is poised to act, numerous companies have converted mutual funds to ETFs. One of the biggest conversions, announced last week, is turning some heads: Akre Capital Management said its sole mutual fund, the $12 billion Akre Focus Fund, will switch to an ETF this fall, pending shareholder approval. The change will result in more tax efficiency, higher transparency, and lower fees, the company said. The proposed conversion 'is the best route forward for our shareholders,' John O'Bannon, director of the company's institutional fund distribution, said in the announcement. READ ALSO: Trump's Truth Social Files for Bitcoin ETF and Proxy Warfare Last month, JPMorgan disclosed that its $1.2 billion Unconstrained Debt Fund would convert to an ETF, with assets moving in September to the JPMorgan Flexible Debt ETF, the new product. Another firm, Lazard, which added its first ETFs this year and is currently prepping more, converted its International Equity Advantage mutual fund to the Lazard International Dynamic Equity ETF last month. The company is also converting its US Systematic Small Cap Equity Portfolio to an ETF later this year. Some of the other recent ETF conversions: Franklin Templeton announced plans last month to convert 10 municipal bond mutual funds from the Putnam Investments product line it acquired in 2024. Those funds would become ETFs in the fourth quarter of 2025 or first quarter of 2026. Thrivent similarly disclosed its intentions in May to switch its $330 million Core Small Cap Value and $27 million Mid Cap Value funds to ETFs in the fourth quarter of 2025. Waiting Room: Waiting for the SEC's approval of dual share classes might not be a great strategy for all firms, particularly if they don't already have a strong line of ETFs but have been planning for a while to break into that space. And even with the advent of dual share classes, adding a mutual fund or ETF share class may not be easy for all issuers and their distribution partners, as fund investors must have brokerage accounts that allow them to receive shares of whatever vehicle a company moves to. 'There are technology changes that have to occur at the asset manager side and the broker-dealer side to facilitate the ETF share class,' said Craig Kilgallen, relationship manager at Fuse Research Network. 'The broker-dealers need to decide if this is the right way to go. It could create fiduciary issues if someone is in the fund and not the ETF.' This post first appeared on The Daily Upside. To receive exclusive news and analysis of the rapidly evolving ETF landscape, built for advisors and capital allocators, subscribe to our free ETF Upside newsletter. Sign in to access your portfolio
Business Wire
12-05-2025
- Business
- Business Wire
Lazard Asset Management Completes Conversion of Mutual Fund to Launch International Dynamic Equity ETF
NEW YORK--(BUSINESS WIRE)--Lazard today announced that it has completed the conversion of the Lazard International Equity Advantage mutual fund into the exchange-traded fund (ETF), Lazard International Dynamic Equity ETF (NYSE: IEQ), listed on the New York Stock Exchange. IEQ offers investors a way to invest in international equities through a more tax-efficient, lower fee solution. 'We are seeing the pendulum start to swing toward international equities, which are becoming increasingly attractive to investors,' said Rob Forsyth, Lazard's Global Head of ETFs. 'This conversion allows us to broaden access to a strategy that has historically delivered consistent performance through different market cycles. Our Advantage team has long been trusted by leading institutional investors, and we're proud to make it accessible to a wider investor base through IEQ.' IEQ aims to deliver consistent excess returns by investing in a diversified portfolio of international equities, through a bottom-up selection process that avoids overreliance on a single style or factor. 'IEQ offers a unique opportunity to invest in great companies around the world,' said Paul Moghtader, Portfolio Manager and Head of Lazard's Quantitative Platform. 'Our proprietary approach uses a combination of machine intelligence and fundamental insights, enabling us to identify unique investment opportunities and effectively manage relative risk exposures, aiming to deliver consistent excess returns.' The launch of IEQ reflects Lazard's continued dedication to expanding and strengthening its actively managed ETF platform to meet the evolving needs of investors. It follows the launches of Lazard Equity Megatrends ETF (THMZ), Lazard Japanese Equity ETF (JPY), and the Lazard Next Gen Technologies ETF (TEKY) earlier this year. About Lazard Founded in 1848, Lazard is the preeminent financial advisory and asset management firm, with operations in North and South America, Europe, the Middle East, Asia, and Australia. Lazard provides advice on mergers and acquisitions, capital markets and capital solutions, restructuring and liability management, geopolitics, and other strategic matters, as well as asset management and investment solutions to institutions, corporations, governments, partnerships, family offices, and high net worth individuals. For more information, please visit and follow Lazard on LinkedIn. Lazard Asset Management, a subsidiary of Lazard, Inc. (NYSE: LAZ), offers a range of equity, fixed income, and alternative investment products worldwide. As of April 30, 2025, Lazard's asset management businesses managed approximately $231 billion of client assets. For more information about LAM, please visit LAZ-AM Risks and Disclosures Non-US Securities Risk: The Portfolio's performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity. Country Risk: Implementation of the Portfolio's investment strategy may, during certain periods, result in the investment of a significant portion of the Portfolio's assets in a particular country, such as Japan, and the Portfolio would be expected to be affected by political, regulatory, market, economic and social developments affecting that country. Please consider a fund's investment objectives, risks, charges, and expenses carefully before investing. For more complete information about Lazard ETFs and current performance, you may obtain a prospectus or summary prospectus by calling 800- 823-6300 or going to Read the prospectus or summary prospectus carefully before you invest. The prospectus and summary prospectus contain investment objectives, risks, charges, expenses, and other information about the Portfolio and Lazard ETFs that may not be detailed in this document. Investments involve risk. Principal loss is possible The Lazard ETFs are distributed by Foreside Fund Services, LLC.
