As large mutual fund providers eye the exchange traded fund space, many are finding that the old way of adapting tried funds into the ETF structure does not always fit. Instead, a growing number of sponsors are working with service providers to craft active strategies.
Beacon Consulting Group believes a significant shift in technology investment is required to meet the rapid growth in the ETF industry, reports Jackie Noblett for Ignites.
“Jury-rigged accounting systems couldn’t scale. I don’t think [service providers]ever intended them to be long-term solutions and they are certainly not proving to be long-term solutions,” Adam Lerner, managing director at Beacon Consulting Group, said in the article.
For example, the growing popularity of fixed-income, international and active ETF strategies is putting pressure on operations and technology, the consulting group said.