U.S. Bancorp Fund Services, LLC (USBFS) today announced the launch of
its first exchange traded fund (ETF) multiple series trust (MST) and a
partnership with Exchange Trade Concepts (ETC). This newest trust,
called ETF Series Solutions (ESS), extends the benefits of a shared
trust model to one of the industry's fastest growing segments.
AlphaClone, LLC and Zacks Investment Management will be the first two
funds for the trust. AlphaClone will be offering one fund and Zacks
Investment Research will be offering two funds, all with unique
strategies.
"This new MST and partnership with Exchange Traded Concepts help make
entering the ETF market incredibly easy for investment managers," said
Joe Redwine, president of USBFS. "We continuously strive to find new
ways to help our clients focus on investing while capitalizing on
developments in the market. Our new MST continues that tradition."
ETC, a private-label ETF advisor, serves as the investment manager. As
an advantage to funds in the shared trust, existing investment advisers
and trust-level exemptive relief eliminates the cost and time to file
separately, and significantly decreases time to market. Although each
fund will be responsible for fund-specific expenses, certain expenses
are shared by all funds in the Trust, including general legal services,
Board of Trustee costs, insurance, and the trust's Chief Compliance
Officer.
"Given their long-standing history in the mutual fund market and strong
financial background, we are excited and fortunate to partner with U.S.
Bancorp Fund Services to help launch this MST," said Garrett Stevens,
chief executive officer of ETC. "Both of our companies are committed to
growing the Trust and, given the increase in awareness in the ETF
market, this is an ideal product to launch now."
ESS marks the fifth MST for U.S. Bancorp Fund Services. In December,
USBFS introduced its ETF servicing solution called ETF-FusionTM,
offering consultative support including product development and
implementation, along with proprietary technology. ESS combines the
benefits of ETF-FusionTM with the additional benefits of a
shared trust model. Currently, USBFS shared trusts have $12.5 billion in
mutual fund assets, 113 participating funds, 166 classes, and 58
different advisers.
"The ETF MST is a new concept in the industry that enables investment
advisers to build awareness and recognition for their brand as a
private-label ETF and launch an ETF in approximately 75 days for a
minimal initial investment," said Eric Falkeis, officer of ESS and chief
financial officer of USBFS. "Our ETF professionals have the operational
and regulatory experience, plus the industry contacts needed to navigate
the complexities of launching and managing an ETF."
About U.S. Bancorp Fund Services, LLC
Headquartered in
Milwaukee since 1969, U.S. Bancorp Fund Services, LLC provides services
to 320 fund families comprised of 2,087 portfolios, 2,372 fund classes,
and 3.8 million shareholder accounts with $540 billion in client assets.
U.S. Bancorp Fund Services combines industry-leading technology with
high-quality customer service to provide clients with the best solutions
available. For more information about their comprehensive suite of
mutual fund and alternative investment product services, call
800-300-3863 or visit www.usbfs.com.
