SEI has been selected by Exchange Traded Concepts (ETC) to provide a comprehensive suite of back-office services for the firm's recently launched turnkey ETF platform.
SEI will be the distribution and operational engine behind the ETC platform, which is designed to help investment managers enter the growing ETF market quickly without the large capital expenditure typically associated with building an institutional-quality infrastructure.
Yorkville ETF Advisors, LLC will be the first firm to launch an ETF, the Yorkville High Income MLP ETF, on ETC's platform. SEI will provide operational outsourcing for Yorkville ETF Advisors, LLC and subsequent managers who launch on ETC's platform. SEI will also provide ETC with a complete outsourcing solution that includes back-office services such as fund administration, fund accounting, and investor servicing, and offer an index receipt agency and custody solutions. Leveraging off its significant market share, SEI will also provide distribution services, daily and monthly portfolio measurement, and authorised participant (AP) processing in a straight-through electronic processing environment. SEI's flexible infrastructure, its deep ETF sector expertise, and trading support for over 55 per cent of the US ETF market were highlighted as the key decision factors in ETC's selection.
"SEI's strong experience and best-in-class technology simplified our decision in choosing a partner for this new venture," said J. Garrett Stevens, CEO of Exchange Traded Concepts. "SEI combines the robustness and scalability of an institutional-quality infrastructure with a proven track record of getting managers up and running quickly on its platform. SEI's integrated solution is exactly what we need to grow the platform and provide managers with the operational support they need."
"This is an exciting new model and we are proud to provide the turnkey solution Exchange Traded Concepts needs to offer managers an innovative way to get their funds to market quickly and confidently," said John Alshefski, senior vice president, SEI's Investment Manager Services division. "Operational outsourcing has already become the norm in the ETF space but it's particularly fitting in this case given the complexity and the potential growth of this model. We are excited that ETC put its trust in SEI to help them grow this unique business, and we're excited to begin by launching Yorkville High Income MLP ETF."
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