Ultimus Fund Solutions, a provider of administrative services and solutions for issuers of exchange traded funds, said it’s bolstering its offerings for active ETFs.
With about $8.6 trillion in assets residing in mutual funds and close to half of that allocated to actively managed products, there’s a potentially massive opportunity for mutual fund issuers looking to enhance or establish ETF footprints by using an active structure.
“As for transparent ETFs, the SEC’s new ETF Rule 6c-11 has removed “exemptive relief” requirements, enabling ETF issuers to more easily bring new strategies to market. Earlier this year, Ultimus helped two adviser clients quickly launch active transparent ETFs in accordance with the new rule, positioning clients as among the first to market,” according to the service provider.
Active ETFs do not seek to track a specific index and have a stated objective of maximizing income, long-term capital appreciation, or total return.
Standard Passive ETFs seek to track an index, typically constructed by a third-party index-provider, and reallocate at a pre-determined time period (e.g. on a semi-annual or annual basis). Index ETFs publish holdings daily, and the goal of the fund is to deliver returns in-line with their stated benchmark.
Ultimus is making inroads with the next generation of active ETFs.
New “offerings also reflect the strengths of Ultimus’ award-winning series trusts. Ultimus was named the number one ‘Multi-Series Trust Provider’ in 2019 by Fund Intelligence, a leading industry publication. Long recognized as a standout in onboarding and servicing, with a sustained commitment to investing in technology and an industry-leading professional staff, Ultimus is applying its successful service model—and all the same capabilities—to the expanded ETF offerings.”
Investors should be considering actively managed strategies, especially in the current market environment, when a more nimble manager may be better suited to navigate quickly changing conditions.
Ohio-based Ultimus “is a leading provider of full-service fund administration, accounting, and investor solutions to support the launching and servicing of registered funds, private funds, and public plans. The company also offers customized structures designed for the unique needs of pensions, endowments, foundations, and other large institutions. Ultimus’ deep commitment to excellence is achieved through investments in best-in-class technology, compliance programs, organization-wide cyber security efforts, and hiring seasoned professionals,” according to the company.