Regulatory Evolution Creates Opportunities for Growth and New Fund Development
OAKS, Pa., June 27, 2019 /PRNewswire/ -- SEI (SEIC) today announced its Advisors' Inner Circle Fund® Trust (AIC) is extending its platform to offer asset managers the opportunity to launch exchange traded funds (ETFs) within its turnkey series trust operational infrastructure.
The AIC platform's expansion is in response to the SEC's exemptive relief that grants the operation of actively-managed, non-transparent ETFs, as well as the potential adoption of new Rule 6c-11 under the Investment Company Act of 1940 that would allow ETFs to operate without obtaining exemptive orders from the SEC. These regulatory developments are anticipated to provide new opportunities to registrants and an expected boost for the ETF industry.
Similar to its services supporting mutual funds, AIC will provide asset managers, who are seeking to launch an ETF, the opportunity to leverage SEI's flexible operating structure and service solution. The platform includes an independent board of trustees and a scalable infrastructure that encompasses fund administration, accounting, investor servicing and distribution services. Since its inception, the AIC platform has grown to represent one of the nation's largest series trusts with more than $70 billion in assets across 133 funds on behalf of 45 investment advisors in the second quarter of 2019.
"As a result of the SEC's ETF-related regulatory developments, we believe the asset management industry will likely experience new demand from registrants interested in entering the ETF space and an increase in non-transparent, active ETF fund launches," said Rob Owens, Managing Director of SEI's Investment Manager Services division.
"The Advisors' Inner Circle Fund Trust has expanded its comprehensive operating platform to address the many facets and specific requirements of transparent and non-transparent ETFs," added Mike Beattie, Managing Director of SEI's Investment Manager Services division, President of Advisors' Inner Circle Fund. "The AIC platform provides managers access to an independent board of trustees, legal counsel and a CCO, as well as the financial benefits of sharing trust-level expenses with other platform members. Managers will also benefit from an experienced, strategic relationship manager and cost-effective access to the industry's best auditors and custodians."
SEI helped pioneer the series trust concept over 27 years ago by introducing the Advisors' Inner Circle Fund Trust via an institutional-quality turnkey mutual fund operating platform. The AIC series trust enables investment organizations to rapidly launch and grow mutual funds and exchange traded funds without having to build their own fund operating infrastructure. The solution is also designed for asset managers seeking a more cost-effective way to operate their existing mutual funds, ETFs and liquid alternatives funds.
About SEI's Investment Manager Services Division
Investment Manager Services supplies investment organizations of all types with advanced operating infrastructure they must have to evolve and compete in a landscape of escalating business challenges. SEI's award-winning global operating platform provides investment managers and asset owners with customized and integrated capabilities across a wide range of investment vehicles, strategies and jurisdictions. Our services enable users to gain scale and efficiency, keep pace with marketplace demands, and run their businesses more strategically. SEI partners with more than 550 traditional and alternative asset managers, as well as sovereign wealth managers and family offices, representing over $24.5 trillion in assets, including 45 of the top 100 asset managers worldwide. For more information, visit seic.com/ims.
After 50 years in business, SEI (SEIC) remains a leading global provider of investment processing, investment management, and investment operations solutions that help corporations, financial institutions, financial advisors, and ultra-high-net-worth families create and manage wealth. As of March 31, 2019, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages, advises or administers $945 billion in hedge, private equity, mutual fund and pooled or separately managed assets, including $332 billion in assets under management and $609 billion in client assets under administration. For more information, visit seic.com.