ALPS Announces Initiative To Launch NextShares Exchange-Traded Managed Funds

DENVER–(BUSINESS WIRE)–ALPS, a DST Company providing products and services to the financial services industry, today announced it has entered into a preliminary agreement with Navigate Fund Solutions LLC (Navigate), a subsidiary of Eaton Vance Corp. (NYSE: EV), to support the launch of a family of ALPS NextShares™ exchange-traded managed funds.

“We believe that the improved performance and tax efficiency of NextShares is what fund investors have been waiting for”

The new ALPS NextShares funds will be launched through the ALPS ETMF Trust, which is designed to provide a turnkey solution for investment managers looking to launch new NextShares funds.

NextShares are a new type of actively managed fund seeking to provide better performance and improved tax efficiency for investors through lower operating costs and improved trading efficiency. NextShares can invest in all the same asset classes and strategies as mutual funds, including equity, income, alternative, and multi-asset investments. As exchange-traded products, NextShares have built-in cost and tax advantages. Unlike conventional exchange-traded funds, NextShares provide buyers and sellers of shares with transparency of their trading costs and protect the confidentiality of fund trading information. NextShares were developed by Navigate Fund Solutions LLC, a subsidiary of Eaton Vance Corp.

“It’s clear to us that NextShares can offer certain advantages as vehicles for active investment strategies,” says Ned Burke, Chief Executive Officer, ALPS Holdings, Inc. “As pioneers in product development, we look forward to working with Navigate to bring this new product initiative to the marketplace.”

The timing of the NextShares launch depends upon final regulatory approval and market readiness.

“We believe that the improved performance and tax efficiency of NextShares is what fund investors have been waiting for,” says Stephen W. Clarke, President of Navigate. “We look forward to working with ALPS to introduce this game-changing idea to investors and the financial advisors who serve them.”

More information on NextShares is available at nextshares.com.

About ALPS

Through its subsidiary companies, ALPS Holdings, Inc. is a leading provider of innovative investment products and customized servicing solutions to the financial services industry. Founded in 1985, Denver-based ALPS delivers its asset management and asset servicing solutions through offices in Boston, New York, Seattle, and Toronto. ALPS is a wholly-owned subsidiary of Kansas City-based DST Systems, Inc. For more information about ALPS and its services, visit www.alpsinc.com. Information about ALPS products is available at www.alpsfunds.com.

About Navigate and Eaton Vance

Navigate Fund Solutions LLC is a wholly-owned subsidiary of Eaton Vance Corp. formed to develop and commercialize NextShares. Aspects of the operation of NextShares are protected intellectual property owned by Navigate.

Eaton Vance Corp. is one of the oldest investment management firms in the United States, with a history dating to 1924. Eaton Vance and its affiliates managed $312.6 billion in assets as of July 31, 2015, offering individuals and institutions a broad array of investment strategies and wealth management solutions. For more information, see eatonvance.com.

This press release is for informational purposes only and is not intended to constitute, and should not be construed as, an offer to sell securities. The launch of NextShares by ALPS is conditional upon fund 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. Like mutual funds, NextShares will not offer investors the opportunity to buy and sell intraday based on current (versus end-of-day) determinations of fund value. NextShares trade execution prices will fluctuate based on changes in NAV and may vary significantly from anticipated levels during periods of market volatility. Although limit orders may be used to control trading costs, they cannot be used to control or limit trade execution prices. There can be no guarantee that an active trading market for NextShares will develop or be maintained, or that their listing will continue unchanged. Buying and selling NextShares may require payment of brokerage commissions and expose transacting shareholders to other trading costs. Market trading prices of NextShares may be above, at or below NAV, will fluctuate in relation to NAV based on supply and demand in the market for shares and other factors, and may vary significantly from NAV. The return on a shareholder’s NextShares investment will be reduced if the shareholder sells shares at a greater discount or narrower premium to NAV than he or she acquired the shares. The performance of actively managed NextShares will depend in part on the portfolio managers’ successful application of analytical skill and investment judgment. A NextShares 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 NextShares. Investors in NextShares should have a long-term investment perspective and be able to tolerate potentially sharp declines in value. An investment in NextShares 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.