Ultimus Fund Solutions signs admin mandate with Homestead Funds

US-based Homestead Funds cited technology as a key reason for its decision to select Ultimus.

By Chris Lemmon

Ultimus Fund Solutions has signed a partnership with Viriginia-based mutual fund company Homestead Funds to become the firm’s transfer agent of choice.

Homestead cited technology as a key reason for signing the deal, specifically for the use of Ultimus’ uTRANSACT product, which provides real-time information and account access for both shareholders and advisors. Ultimus also offers a digital asset allocation tool, allowing investors to customise their own allocation models.

Formed more than 30 years ago to invest on behalf of community electric cooperatives and their members, Homestead has grown in scope and size to reach over 42,000 shareholder accounts across 10 mutual funds.

Mark Santero, president and CEO of Homestead Funds, said the deal will help the business to expand with more direct services to a broader audience. “Ultimus’ technology platforms fit our needs for a front-end asset allocation tool. With Ultimus, what started as a conversation about traditional transfer agent services led to discovering tech offerings that will enable us to grow our business through various channels while servicing our unique shareholder requirements.”

Ian Martin, executive vice president and chief administrative officer at Ultimus, added: “Homestead Funds has a sizeable concentration of direct shareholders which presents a unique set of requirements, scale and expertise. With our uTRANSACT technology, we look forward to partnering to support Homestead’s entry into new markets while enhancing their current shareholders’ servicing experience.”

The deal marks a continuation of recent success for Ultimus, which earlier this month reported close to 150% growth in the number of ETFs it has serviced since 2020.