Ultimus Fund Solutions, a provider of administrative services and solutions for issuers of exchange traded funds, is adding to its roster of exchange traded fund servicing solutions with uETF. uETF will be part of the firm’s uSUITE framework, which includes uPRICE, uTRANSACT, and uNAV applications, among others.
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.
“Servicing ETFs for close to a decade, Ultimus offers fund administration solutions for active and passive ETFs, both transparent and non-transparent through its series and standalone trust solutions. With the soaring popularity of ETFs among advisers and in the marketplace, the uETF enhancements add even more capability and bandwidth to Ultimus’ proven service infrastructure. Notably, uETF allows Ultimus to scale effortlessly as ETF offerings increase in number and complexity in the marketplace,” said the company in a statement.
Active and Passive ETFs
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.
“As part of a fully interconnected technology ecosystem comprising numerous uSUITE applications, uETF deploys cutting edge technology using machine learning, artificial intelligence and robotic process automation (RPA). In doing so, uETF streamlines the ETF workflow and dataflow processes with end-to-end, “straight-through” processing, providing layers of quality control, auditability and data integrity. uETF also pulls in critical security and pricing data automatically from external sources while delivering enhanced capabilities and reporting to clients,” according to Ultimus. “Clients also benefit from additional features within uETF, as the automated system allows nightly portfolio composition files, which are essential to ETFs, to be sent in a shorter timeframe. In addition, since the app is internally developed, it is easily adaptable for future enhancements and additional reporting capabilities.”
For more on active strategies, visit our Active ETFs Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.