Understanding Why the 'Precidian' Model Could Be a Major Gamechanger for Active

The video discusses a new ETF structure approved by the SEC, which could revolutionize the industry by allowing active assets to move into ETFs. It compares this structure with Next Shares, highlighting differences and potential advantages. The video also explores the interest from asset managers, investor perspectives, and the challenges faced by smart beta funds. Finally, it addresses the transition to active management for these new products.

What is the potential impact of the new structure approved by the SEC on the asset management industry?

• It will only benefit small asset managers.

• It will lead to the decline of ETFs.

• It could become a trillion-dollar idea.

• It will have no significant impact.

How does the Presidium structure differ from NextShares?

• NextShares are cheaper than Presidium.

• Presidium trades throughout the day, unlike NextShares.

• NextShares are more transparent than Presidium.

• Presidium is a type of mutual fund.

Why are some major asset managers interested in the Presidium structure?

• It offers a new way to manage passive funds.

• It is mandated by the SEC.

• It allows for nontransparent active management.

• It is cheaper than other ETF options.

What is one challenge that smart beta funds face according to the transcript?

• They lack transparency.

• They are not regulated by the SEC.

• Advisors find them difficult to understand.

• They are too expensive for most investors.

What is the potential role of Presidium funds for active managers?

• They serve as a bridge to passive investments.

• They are primarily for international markets.

• They replace traditional mutual funds.

• They offer a new form of active management.