The Reno-based parent of One Fund, the first exchange-traded fund to be managed and operated entirely from Nevada, will be acquired less than a year after the fund began trading on the New York Stock Exchange.
U.S. One Inc. will be acquired by Russell Investments, a subsidiary of The Northwestern Mutual Life Insurance Co., the companies said in documents filed with the Securities and Exchange Commission last week.
They didn't disclose the price Russell Investments will pay for the Reno-based fund advisory firm. The transaction is expected to close during the first quarter.
Jim Polisson, managing director of Russell's global ETF business, said the acquisition is part of his company's strategy to establish its U.S. exchange-traded funds business.
In recent weeks, One Fund announced it reached a milestone with $10 million of assets under management.
When the fund was launched, U.S. One Inc. president Paul Hrabal estimated the fund would break even once assets under management reached $75 million to $100 million.
An entrepreneur who previously had launched three technology companies, Hrabal devoted 27 months to development of One Fund and to winning regulatory approval.
The exchange-traded fund itself composed of investments in other ETFs began trading on the New York Stock Exchange May 11. Six week later, Hrabal and friends of the company were invited to ring the opening bell of the NYSE.
Shareholders in the fund will vote Feb. 18 on the proposed transaction. Their vote is required because the sale of U.S. One Inc. to Russell Investments will represent a change in the investment advisor of the fund.
Hrabal will continue to work with Russell Investments as a consultant on the ETF business.
