It's Unfair to Call "Precidian Model" Non-Transparent: Precidian CEO McCabe

The transcript discusses the Presidian structure's readiness for launch, comparing it with other structures like Fidelity's. It addresses challenges faced by nontransparent active structures and highlights opportunities for active management to compete with passive ETFs. The discussion also covers the accessibility of top fund managers and the advantages of new structures. Finally, it debates the naming and transparency of these financial products, suggesting terms like 'semi-transparent' or 'active shares'.

What is one advantage of the Presidian structure over other structures?

• It is completely transparent.

• It has licensed major entities like JP Morgan and Goldman Sachs.

• It is cheaper than other structures.

• It is the only structure available.

Why are nontransparent active structures considered a solution in search of a problem?

• They are more expensive than passive ETFs.

• They are seen as benefiting asset managers more than investors.

• They are not supported by any major financial institutions.

• They have no tax advantages.

What is a key reason for the decline in active mutual fund performance?

• Limited market access.

• High management fees.

• Inability to compete with passive ETFs.

• Lack of interest from investors.

How do nontransparent active structures aim to level the playing field with passive ETFs?

• By limiting investor access.

• By increasing transparency.

• By offering similar tax and trading efficiencies.

• By reducing management fees.

What alternative name is suggested for nontransparent active structures?

• Semi-transparent

• Closed funds

• Hidden shares

• Opaque funds