Hennessy Advisors has signed a definitive agreement with Stance Capital and Red Gate Advisers to reorganize the Stance Equity ESG Large Cap Core ETF (STNC ) into the Hennessy Stance ESG Large Cap ETF. As part of the deal, Hennessy Advisors will become the fund’s investment advisor.
STNC currently has about $40 million in assets. The transaction is expected to be completed in the fourth quarter.
“We are excited to undertake this strategic expansion of our business and to partner with the team at Stance Capital,” said Hennessy Advisors Chairman and CEO Neil Hennessy said in a news release announcing the deal. “This unique ETF product is consistent with our historical strength of providing our investors with portfolios focused on long-term value while kicking off the next stage of our product evolution into the ETF market.”
Hennessy added: “We look forward to welcoming the Stance ETF shareholders, and we are committed to a smooth transition into the Hennessy family of investments.”
Stance Capital will serve as subadvisor to the ETF, while current portfolio managers Bill Davis and Kyle Balkissoon will continue to provide the day-to-day management of the fund’s portfolio. The ETF will continue to operate under the Portfolio Reference Basket structure of the Blue Tractor Group pursuant to a license agreement.
Vident Investment Advisory will continue to provide trading subadvisory services to the Hennessy Stance ETF.
Stance Capital Founder Bill Davis added in the release: “Neil Hennessy, Teresa Nilsen, and the team at Hennessy consistently demonstrate a commitment to their shareholders and the asset management industry. We feel confident our shareholders will continue to receive solid portfolio management, excellent shareholder service, and dedicated trustee guidance.”
The transaction is subject to customary closing conditions.
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