At a glance
- Days later it listed actively managed Japan fund NJPN on NYSE Arca at a 0.49% fee.
- In taxable accounts, if the reorganization qualifies as intended, the move into the ETF would not itself generate a capital-gains distribution for holders, and the ETF trades intraday rather than pricing once a day.
- A conversion carries an existing portfolio and shareholder base into the wrapper.
Nomura converted two mutual funds into ETFs, its first such conversions. Days later it listed actively managed Japan fund NJPN on NYSE Arca at a 0.49% fee.
Lyrical Asset Management took the conversion route at larger size, moving $1 billion across two value strategies into ETFs LYR and LYRI in a reorganization the manager says is intended to qualify as tax-free.
In taxable accounts, if the reorganization qualifies as intended, the move into the ETF would not itself generate a capital-gains distribution for holders, and the ETF trades intraday rather than pricing once a day. Lyrical's two strategies have run since 2009 and 2019.
A conversion carries an existing portfolio and shareholder base into the wrapper. A launch starts at zero assets, so a converted ETF can show a strategy record that predates its listing.
The Nomura listings came during a busy stretch: 19 ETFs launched in the seven days to Nov. 12, with Nomura and Lazard each listing three funds, according to ETF Express.
Nomura used both routes within days: the converted funds first, NJPN after them, and the 0.49% fee applies only to the newly launched fund.
Nomura and Lazard accounted for six of 19 launches in a week
ETFs listed in the seven days to Nov. 12, by issuer
| Part | Value | Share |
|---|---|---|
| 3 | 15.8% | |
| 3 | 15.8% | |
| 13 | 68.4% |
Reported by the Active desk from ETF Express, Nomura and Lyrical Asset Management. Published . Corrections
Continue this analysis
Get the complete ETFs analysis and every detail that follows.
Enter a valid work email to continue reading.
Already a reader? Sign inETF Daily, from Private Wealth Daily. Unsubscribe anytime.