SS&C Technologies has extended its ALPS fund services platform with a new offering for non- and semi-transparent actively managed exchange traded funds (ETFs).
The tech giant has launched a new range of services enabling asset managers entering the non-transparent ETF space to convert their funds and access third-party distribution platforms.
Other services include portfolio management support, fund administration, fund accounting, tax services, and fund chief compliance officer (CCO) services.
“We are excited to open ALPS Series Trust’s doors to the growing segment of actively managed non-transparent ETFs. We are committed to supporting all of our ETF customers,” said Brad Swenson, head of registered fund services, SS&C ALPS.
Unlike most traditionally structured ETFs, which disclose their portfolio holdings daily to the market, the actively managed ETF does not require this, and enables fund managers to avoid their portfolios being subject to front-running.
The new ETF structure, which combines elements of active management within a passive investment structure, could encourage asset managers who have in the past shied away from passive investing. However, it requires a number of changes at the post-trade level, including enhanced reporting and analytics tools, and real-time data capabilities for both asset managers and APs.
Yet it provides a unique opportunity for custodians and fund administrators to service actively-managed fund managers that have, up to this point, shied away from launching ETFs.
Earlier this week, State Street was appointed the custodian and fund administrator for the first ever semi-transparent ETF suite launched by American Century Investments.
SS&C acquired the ALPS platform in 2018 in a massive $5.4 billion deal, allowing it to enter the mutual fund and ETF administration market.