Lyrical Asset Management converted two value equity mutual funds holding more than $1 billion in combined assets into exchange-traded funds. The Lyrical U.S. Value Equity ETF (LYR) and Lyrical International Value Equity ETF (LYRI) began trading on the New York Stock Exchange. Predecessor mutual fund shareholders now own ETF shares following a reorganization intended to qualify as tax-free.
The investment philosophy, research process and portfolio management team remain unchanged. The U.S. fund holds approximately 33 companies, while the international fund holds 25–40 companies selected from developed markets outside the United States. Lyrical describes potential benefits of the ETF structure as lower ongoing fund expenses, greater tax efficiency, daily portfolio transparency and intraday trading flexibility.