FMCX Seeks to Comprise a High-Conviction Portfolio from a Firm with Decades-Long Investing Experience
FMCX’s Strategy Mirrors First Manhattan’s Fundamentals-Based, Research-Intensive Approach Across Sectors
First Manhattan Pursues Impactful Engagement with Management Teams on Long-Term Strategy, Growth, and Governance
NEW YORK–(BUSINESS WIRE)–First Manhattan Co. (“First Manhattan”), an independently owned and operated investment advisory firm, today announced the launch of its inaugural exchange-traded fund, FMC Excelsior Focus Equity ETF (ticker: FMCX) (“FMCX” or the “Fund”), an actively managed ETF that invests in First Manhattan’s highest-conviction ideas driven by its rigorous, fundamentals-based research. The Fund will invest in companies that First Manhattan believes possess durable competitive advantages and long-term growth prospects, management teams with strong governance practices, and attractive opportunities to reinvest cash profits.
Zachary Wydra, CEO of First Manhattan, said, “We are excited to strategically expand First Manhattan’s product offerings with the launch of our very first active ETF. Over the past six decades, we have honed a distinctive, fundamentals-based investment approach, and we are compelled to offer this strategy to a broad range of institutional and retail investors in the form of an innovative ETF.”
FMCX intends to hold long-term positions in a focused portfolio of 25 to 30 publicly traded U.S. equities with no single position expected to comprise more than 10% (at cost) of the Fund’s portfolio. Unlike many traditional ETFs that publicly report assets it holds each day, FMCX calculates and disseminates a Verified Intraday Indicative Value (“VIIV”) throughout the trading day. The Fund’s annual expense ratio is 0.70%.
Himayani Puri, FMCX Portfolio Manager, Senior Managing Director, and Director of Research at First Manhattan, said, “We will continue to apply our distinctive investment process to identify opportunities in companies that are attractively valued relative to the quality of their business, our view of their earnings trajectory, and our expectation for long-term growth in value-per-share. We have a business owner’s mindset and engage extensively with management teams.”
The launch of FMCX follows First Manhattan’s September 2021 agreement with Precidian Investments, LLC to license ActiveShares®, Precidian’s proprietary actively managed exchanged-traded fund structure. The structure enables a company to deliver actively managed investment strategies in an ETF vehicle without disclosing holdings on a daily basis.
About First Manhattan Co.
Founded in 1964, First Manhattan is an independently owned and operated investment advisory firm with approximately $20 billion in fee-paying assets under management. First Manhattan seeks to deliver long-term value through an investment approach aligned with clients’ goals and driven by in-house, proprietary research. For more information, please visit firstmanhattan.com.
FMCX is an actively managed ETF that seeks to invest in the highest-conviction ideas of First Manhattan Co.’s research team. First Manhattan is the investment advisor to FMCX. For more information, please visit fmcx.com.
Investors should consider the investment objective, risks, and charges and expenses of the Fund before investing. The prospectus and summary prospectus contains this and other information about the Fund and should be read carefully before investing. The prospectus may be obtained at 888.530.2448 or www.fmcx.com.
The FMC EXCELSIOR FOCUS EQUITY ETF is distributed by Northern Lights Distributors. LLC (Member FINRA/SIPC). The Fund is a new ETF with a limited history of operations for investors to evaluate. Unlike traditional ETFs, the Fund does not tell the public what assets it holds each day. Instead, the Fund provides a VIIV, calculated and disseminated every second throughout the trading day. Investing involves risk, including loss of principal. There is no guarantee that the Fund will achieve its investment objective. Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. This Fund may invest in a limited number of companies, which carries more risk because changes in the value of a single company may have a more significant effect, either negative or positive on the Fund’s value. Because the shares are traded in the secondary market, a broker may charge a commission to execute a transaction in shares, and an investor also may incur the cost of the spread between the price at which a dealer will buy shares and the somewhat higher price at which a dealer will sell shares.
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