Thematics bring growth for Truss Edge over 2020
Truss Edge: Best ETF Middle Office Tech Provider – Another example of being in the right place at the right time has come for middle and back-office support firm Truss Edge, whose adaptability for thematic ETFs has seen its business grow 120 per cent over 2020.
Jay Duffy (pictured), CEO, and Dave Shastri, CSO explain that the firm is now advising on assets of over USD10 billion.
Of winning this award, Duffy says: “I am a little prejudiced but I think we got it because of what we have done for ETFs over the last 12 years.”
Truss Edge started in 1998, offering middle and bank office support for hedge funds and then, having developed its own platform named Safari, it expanded into ETFs in 2008.
“We saw the same opportunity in ETFs and we are now one of the premier providers of middle and back-office operations,” Duffy says.
“We develop closely with our clients on a daily basis and keep it automated because that’s the one thing with ETFs – you need a NAV by the end of the day and if you don’t have one, you can’t operate.”
Duffy confirms that the firm has always worked very closely with clients. “But we realised that you have to not only work with your clients but also interact with all the third parties approved participants and market makers to be able to manage an ETF fund.”
Client meetings are bi-weekly so that the firm can stay on top of what is going on in the market.
“Originally many of the ETFs were synthetic but now these are physically replicated portfolios using an index,” he says. “We are small enough that we can develop things quickly. With releases once a month, we are very responsive to the market, delivering almost immediately what a client needs and we can really handle almost any kind of ETF.”
For Duffy, this year has been the year of thematics. “There have been very specific ETFs like clean energy or hydrogen that some of our clients have launched recently, and all of those types of thematic funds are very successful, growing in leaps and bounds and we can handle those and launch a fund very quickly.”
Shastri says: “Thematics is where the interesting growth is. The core ETFs are the big major index ones and nobody is launching new ones of those as you are not going to compete with BlackRock and Vanguard. The new entrants are building these theme-based ETFs which pose different challenges to the big core funds.
“They need to work much harder with their market makers and clients and the demands on their operations are bigger as a result. We give a big differentiation as we can provide more help cost effectively through automation and operations, which makes us unique.”
Duffy comments that the regulatory climate has also called for a phenomenal amount of compliance and reporting across a number of geographies. “Our system is flexible and gives you a fast response and the ability to deliver to the fund managers all the knowledge they need without having to buy different software.”
Shastri says: “We are excited by our growth in 2020, in the face of all the volatility last year. We are here to support the portfolio managers and so it’s their success we celebrate, which, hopefully, we are contributing to.”
Jay Duffy, Chief Executive Officer, Truss Edge
Jay Duffy is the founder of the innovative software and services firm Truss Edge, dedicated to providing end to end support of investment management. Originally servicing a complex, global multi-strategy investment firm. Truss Edge has since expanded to deliver its flexible software and operations as a service capabilities to a broad range of investment firms looking to operate on a modern, leading technology and infrastructure platform.
Dave Shastri, Chief Strategy Officer, Truss Edge
Dave Shastri has extensive experience and expertise in operations, technology and finance and has been a technology entrepreneur for 20 years. He guides the strategy and development of Truss Edge. Dave is excited to help investment firms significantly improve their environments and support their success. He also has over 25 years’ experience as a board director of investment managers and investment funds with diverse strategies.