Threadneedle joins the race for ETF market share licencing NextShares
Columbia Threadneedle Investments has filed with the US SEC for permission to launch﻿ NextShares and index-tracking ETFs﻿. Threadneedle, which﻿ has a set of five actively managed ETFs, seeks approval to build its own indices for stock and bond funds, and to manage NextShares, a hybrid of mutual funds and ETFs designed﻿ by Eaton Vance, which﻿ allows asset managers to keep their trades secret,unlike traditional ETFs. Eaton Vance plans to launch NextShares, aka ETMFs (Exchange Traded Managed Funds) later this year. They are expected to attract active managers which have refrained from managing ETFs due to concerns that the frequent disclosures required would expose their funds to risk of front-running. Threadneedle becomes the largest mutual fund manager to licence NextShares.﻿

Ameriprise Financial Inc.’s global asset management group Columbia Threadneedle Investments on Monday asked securities regulators for permission to launch a new set of both NextShares and index-tracking exchange-traded funds.

The fund company becomes the latest traditional mutual fund manager to seize on growth opportunities with financial advisers and various types of investors who have made ETFs into a $3 trillion market globally.

(More: Eaton Vance’s NextShares gets its first custodian on board)

The firm already has a set of five actively managed ETFs. It’s under no obligation to launch funds even if it receives approval from the Securities and Exchange Commission.

But the firm’s filings Monday would allow Columbia to manage index-tracking funds, as well as NextShares, a hybrid of mutual funds and ETFs that allows managers to keep their trades secret, unlike traditional ETFs.

(More: Precidian goes back to SEC for approval of active ETF plan)

The firm becomes the largest mutual fund company to license NextShares, which are owned by Eaton Vance Corp.

A separate pending request would, if approved by the SEC, allow Columbia to build its own indexes for stock and bond funds.