Market structure leader, visionary, and financial engineer, Todd's expertise includes particular emphasis in financial services; merchant banking; market structure; new markets; financial technology; investment management; systematic investment management: open-end investment companies including NextShares exchange-traded managed funds, exchange-traded funds (ETFs), and mutual funds; and patent prosecution.
He is a co-founder and Managing Partner of Managed ETFs LLC which was formed in 2005 to improve and extend the popular ETF product structure to replace conventional mutual funds with NextShares™ exchange-traded managed funds, a new type of actively managed fund designed to provide better performance for investors. NextShares offer significant advantages over both mutual funds and ETFs as vehicles for active investment strategies, thus solving serious problems that the SEC and others recognize in the conventional mutual fund structure. Retaining economic interest, Managed ETFs concluded the transfer of its deep portfolio of patents and protected intellectual property in late 2010 to Eaton Vance, one of the oldest investment management firms in the United States, with a history dating back to 1924.
Following the transfer, the U.S. Securities and Exchange Commission issued two distinct but related Orders in late 2014 to permit the offering of licensed NextShares exchange-traded managed funds and the listing and trading of NextShares on Nasdaq positioning Todd to exercise unique rights to bring a new licensed NextShares family to the fund sector.
In 2015, he demonstrated continued leadership by forming Broms Asset Management LLC and subsequently, its affiliate Applied InvestmentScience™, to create, manage, and market AI SCI NextShares exchange-traded managed funds.
Todd is co-inventor of a wide range of unique, related features and processes for NextShares exchange-traded managed funds. His operating experience includes corporate governance in regulated environments with significant expertise in structured financial engineering.
|7,444,300||Method and System for Improved Fund Investment and Trading Processes|
|7,496,531||Methods, Systems, and Computer Program Products for Trading Financial Instruments on an Exchange|
|7,689,501||Methods, Systems and Computer Program Products for Managing Multiple Investment Funds and Accounts Using a Common Investment Process|
|8,131,621||Methods, Systems, and Computer Program Products for Providing Risk Management Information and Tools to Traders in Fund Shares|
|8,306,901||Methods, Systems, and Computer Program Products for Obtaining Best Execution of Orders to Buy or Sell a Financial Instrument for Which a Net Asset Value is Periodically Calculated|
|8,452,682||Methods, Systems, and Computer Program Products for Facilitating Non-Transparent Exchange-Traded Fund Share Creations and Redemptions with Optional Early Cutoff Times|
|8,577,787||Methods, Systems, and Computer Program Products for Obtaining Best Execution of Orders to Buy or Sell a Financial Instrument for Which a Net Asset Value is Periodically Calculated|
|8,655,765||Methods, Systems and Computer Program Products for Automated Incorporation of Traded Fund Shares in Qualified Retirement Plans|
Broms Asset Management was formed to create, manage, and market high-capacity investment strategies benchmarked against major indices. Through Applied InvestmentScience™, we use a general artificial intelligence framework to extract statistical content from any market factor leading to advanced portfolio construction and management.
Strategies are uniquely designed to outperform over time in both up and down markets and constructed and managed from a specified combination of factors that together seek to deliver strong, risk-adjusted and risk-managed returns. Securities and weightings in each strategy are based on pre-established parameters. The weight of each security in our strategies is determined for growth potential based on assessment of the security’s fundamental value and additional criteria that taken together form part of the security selection, ranking and duration management processes. To minimize risk, portfolio composition is long only and non-leveraged without use of derivatives. Annualized turnover is engineered to be ~50% and is managed for tax-efficiency.
Management has developed a deep and growing portfolio of strategies targeting the large, mid, and total U.S. and International capitalization markets – a +$8 trillion target. The business model includes showcasing performance and market data leading to the commercialization of high-capacity funds which have mass appeal and can scale into multi $ billion funds without the usual capacity limits of alternative type strategies.
Targeted strategies include core, growth and value versions of the S&P 500, Russell 1000, Russell 2000, Russell 3000, U.S. Technology, U.S. Financials, U.S. Industrials, MSCI EAFE Large, and MSCI Emerging Markets.
To better align with accredited investors and institutional clients, compensation is based on a unique Contingent Performance Fee Structure wholly dependent on realizing monthly cumulative total returns greater than a stated benchmark plus 1.00% annualized, after transaction costs.
Bloomberg symbols for funded accounts: AI SCI U.S. Large Cap (AISUSLG); AI SCI U.S. Large & Mid Cap (AISUSLM); and AI SCI U.S. Large Cap Value (AISUSLV).
The U.S. Securities and Exchange Commission has issued an Order granting Broms AM an exemption from certain provisions of the Investment Company Act of 1940, as amended, to permit the offering of NextShares. The Order was issued on a fast track, 34 business days following application — a clear indication of the SEC’s interest for greater shareholder protection and efforts supporting the commercialization of NextShares.
We are considering launching AI SCI NextShares exchange-traded managed funds implemented through a series of large seed investments.
To learn more, please contact Todd Broms by email at email@example.com or call 646-345-5566.Launch of AI SCI NextShares funds is conditional upon regulatory approvals including registration statement(s) declared to be effective, the likelihood and timing of which cannot be predicted, along with various other agreements to be executed which might not be executed.
NextShares™ exchange-traded managed funds are a new way to invest in actively managed strategies. They are designed for active management with the cost and tax efficiencies of exchange trading. NextShares maintain the confidentiality of proprietary investment research and current portfolio trading information that exchange-traded funds ETFs lack.
NextShares offer significant advantages over both mutual funds and ETFs as vehicles for active investment strategies, thus solving serious problems that the SEC and others recognize in the conventional mutual fund structure.
NextShares uniquely list and trade their shares on the Nasdaq exchange at prices directly linked to the fund's next-determined daily net asset value, using a new trading protocol called "NAV-based trading.” Because NextShares trade at known premiums or discounts to NAV, unlike ETFs, the cost to buy and sell NextShares can be controlled and is always transparent.
NextShares can invest in all the same strategies and asset classes as mutual funds. NextShares funds may include equity, income, alternative and multi-asset funds managed in a wide range of active styles.
NextShares are bought and sold in secondary market trades through a brokerage account, much like buying and selling exchange-listed stocks and ETFs. An important distinction is that the price of all NextShares trades equals the fund's next end-of-day net asset value per share (NAV), plus or minus a trading cost (premium/discount) determined in the market when the order executes. As an illustration, a NextShares trade executed intraday at NAV +$0.02 will have a final price of $20.02 if the fund's NAV determined at the end of that day is $20.00. This patented new trading method, called "NAV-based trading," is a key innovation underlying NextShares.
In 2011, Following Eaton Vance’s acquisition of intellectual property which today serves as core innovation underpinning NextShares, Eaton Vance formed NextShares Solutions LLC to develop and commercialize NextShares and enter into license and services agreements with Eaton Vance and other fund sponsors to permit the offering of licensed NextShares funds.
The first NextShares fund began trading on the Nasdaq Stock Market LLC in February 2016. Funds from multiple sponsors have since been introduced across a range of assets classes, with more launches expected in the coming months.
A number of leading investment managers have launched NextShares funds, have entered into preliminary agreements with NextShares Solutions, or have filed exemptive relief applications to offer NextShares. NextShares funds may operate across the full spectrum of asset classes and investment approaches that are available today as mutual funds, and may replicate their sponsors' most proven and successful fund strategies.
In November 2017, UBS Financial Services Inc. became the first full-service wealth manager to offer licensed NextShares through its financial advisor network.
Individual investors, financial advisors, and institutions may purchase and sell shares of NextShares through UBS, Folio Investing® and Folio Institutional®, and Interactive Brokers Group, Inc., leading broker-dealers. Other important broker-dealer readiness is expected to be announced and roll-out in the coming months.
To learn more about NextShares, visit NextShares.com developed to be the definitive market data source for NextShares.
Commercial success requires completion of additional enabling implementation technology and acceptance by market participants. This website is not intended to create any impression of affiliation, sponsorship or endorsement by NextShares.