SS&C ALPS bolsters distribution with full suite of services for ETFs

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SS&C ALPS has offered distribution since 1995 as part of the service model for multiple ETF clients but has recently added in active distribution as part of a full suite of services for ETFs through their partnership with FLX Distribution. The active distribution model is a differentiator for the firm in the industry.

“In our traditional Medallion support model, we could provide the standard full suite of services including series trust, fund administration, fund accounting, transfer agency, creative services, and distribution and CCO services” says Steve Kyllo, Senior Vice President, Director and Chief Compliance Officer, SS&C ALPS. “Now, in the active space, our clients can have a team out there wholesaling on behalf of the asset managers, either augmenting their offering sales team or being their sales team.”

Growth in distribution across the U.S. has gone from an 18 per cent increase in assets last year, to 31 per cent this year, with assets under distribution totalling USD760 billion. That growth has come through organic growth, through new launches and also through the addition of new clients.

The marketplace re cognized SS&C ALPS’ full-service capability to service the asset manager in the awards for the second year in a row. “We can service every aspect of their asset raising process, and we have a lot of experience as we have been doing it since 1995 with decades of knowledge in the industry,” Kyllo says. “Our experience allows us to come in and consult with the client and give guidance and allow them to execute on a superior platform.”

“We can offer those capabilities and all the support from a trust perspective. From a service provider standpoint we can do everything except for custody, which allows them to focus on asset management and asset raising capabilities,” Kyllo says.

Kyllo has noticed an increased appetite for ETFs across the board. “As you can see through our growth, there is a large appetite for investors to get into the ETF space because of the ability to invest in a variety of assets,” he says. “But there is also the demand to launch new ETFs from existing clients—new and creative ETFs, such as those in the cryptocurrency space or ESG or cannabis. We have been able to support those types of products.”

Kyllo also notes a lot of asset managers with mutual funds are looking at the ETF industry in the US and considering adding ETFs to their offering.

“There is lots of activity there, representing a major growth opportunity for our business. We have built out our staff and services to support that growth.”

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