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Friday, November 7, 2014

U.S. SEC OKs Eaton Vance's new breed of ETFs, shares jump, (NYSE: EV)

U.S. regulators plan to allow investment management firm Eaton Vance Corp to launch a new breed of actively managed exchange-traded funds that can keep their holdings secret for months at a time, boosting Eaton Vance shares by 22 percent on Friday.In a notice published late Thursday night, the U.S. Securities and Exchange Commission said it intends to issue an order granting permission to Eaton Vance to launch the new funds, known as exchange-traded managed funds (ETMF), which are a hybrid between traditional mutual funds and exchange-traded funds.Eaton Vance shares surged to $45.75 on the New York Stock Exchange. The company's proposal is the first of several before the Commission to get the go-ahead for so-called non-transparent active ETFs.Eaton Vance plans to launch 18 of such ETMFs, which will be listed and traded like an ETF but do not have to reveal their holdings on a daily basis, like a mutual fund.

Eaton Vance Corp. is engaged in managing investment funds and providing investment management and advisory services to high-net-worth individuals and institutions. Shares of EV traded higher by 21.87% or $8.205/share to $45.72. In the past year, the shares have traded as low as $33.47 and as high as $43.82. On average, 740989 shares of EV exchange hands on a given day and today's volume is recorded at 3987583.