OVERLAND PARK, Kan.--(BUSINESS WIRE)--Ivy Investment Management Company (“Ivy”) announced that it has executed a fund adoption transaction agreement with Emerging Managers Group (“EMG”) through which Ivy will take over responsibility as investment adviser and distributor of the Selector Management Fund SICAV, an umbrella UCITS fund range domiciled in Luxembourg.
Following the closing of the fund adoption, expected on or around June 30, 2014, the UCITS funds will be distributed internationally by Ivy Funds Distributor, Inc., and will be managed by Ivy (its affiliate Waddell & Reed Investment Management Company previously served as subadvisor to the funds). Both Ivy entities are subsidiaries of Waddell & Reed Financial, Inc.
Ivy Funds intends to create a new subsidiary of Ivy Funds Distributor, Inc., to be called Ivy Global Investors, Inc., that will be responsible for the distribution of the UCITS fund range. It also is intended that the SICAV be re-named Ivy Global Investors, with that name attaching to each of the sub-funds within the SICAV (e.g., Ivy Global Investors Asset Strategy Fund).
“This transaction enables us both to serve the non-resident customer market through national broker/dealer firms in the United States and to establish greater international distribution of Ivy’s investment management capabilities,” said Thomas W. Butch, president and CEO of Ivy Funds Distributor, Inc. “It expands our distribution network as well as the range of investors that can access the investment management expertise offered through the Ivy Funds.”
Sub-funds of the SICAV included in the fund adoption transaction are EMG Ivy Asset Strategy Fund and EMG Ivy High Income Fund, which have combined assets under management of approximately $247 million. Three other sub-funds of the SICAV . are under review in Luxembourg: EMG Ivy US Mid Cap Growth Fund, EMG Ivy US Large Cap Growth Fund and EMG Ivy Science and Technology Fund.
As part of the transaction, Ivy Funds expects to hire approximately eight former EMG employees, principally involved in sales and marketing.
Going forward, EMG will partner with Ivy through the distribution of the Ivy products in numerous offshore jurisdictions in Italy, Brazil, and certain Middle Eastern markets, as well as through an EMG SICAV, currently in the process of formation, in the management of a fund-of-funds UCITS that invests in various offshore active funds, including Ivy-managed sub-funds, “smart beta” funds and ETFs.
"We are very pleased to be able to continue to work closely with EMG as they help distribute Ivy products in a number of important global markets and include Ivy in their planned fund-of-funds products," said Butch. "We have worked together effectively, and expect this will continue and even be enhanced as we go forward."
Through its subsidiaries, Waddell & Reed Financial, Inc. (NYSE: WDR) provides investment management and financial planning services to clients throughout the U.S. The firm had approximately $131 billion in total assets under management at March 31, 2014. Ivy Investment Management Company serves as investment advisor to the Ivy Funds, while Ivy Funds Distributor, Inc. serves as principal underwriter and distributor to the Ivy Funds.
This release does not constitute or contain an offer, solicitation, recommendation or investment advice with respect to the purchase of the UCITS fund described herein or any security. Prospective investors should carefully consider fund objectives, risks, charges, tax considerations and expenses and other relevant information before investing. For this and more information on the Selector Management Fund SICAV, please request a prospectus and read it carefully before you invest. Prospective investors should also consult their professional advisers as to the suitability of any investment in light of their particular circumstances and applicable citizenship, residence or domicile. Selector Management Fund SICAV has been authorized in Luxembourg as an Undertaking for Collective Investments in Transferable Securities (UCITS). Shares of Selector Management Fund SICAV are only available for certain non-U.S. persons in select transactions outside the United States. The views expressed herein represent the opinions of Ivy Investment Management Co. and are not intended as a forecast or guarantee of future results for any product or service. Investment return and principal value will fluctuate, and it is possible to lose money by investing. Past performance is not a guarantee of future results.
