Exchange Traded Concepts is now entering the actively managed ETF space.
In an email sent to clients and other industry participants, chief executive J. Garrett Stevens made this announcement.
Exchange Traded Concepts is excited to announce that we have formally received approval from the SEC to begin offering Actively Managed Exchange Traded Funds. This additional exemptive relief comes after 18 months of work between ETC, our legal team and the Securities and Exchange Commission. This expanded Exemptive relief also gives us the ability to offer active ETF’s that incorporate derivatives as a principal investment strategy, something new in the marketplace.
?ETC is First White Label ETF Platform with Both Active and Passive Relief
Oklahoma City, OK – April 23, 2013 - The Securities and Exchange Commission (SEC) has granted exemptive relief to Exchange Traded Concepts, LLC (ETC) to allow the white-label exchange-traded fund sponsor to bring actively managed ETF products to market. The application for exemptive relief was filed 18 months ago and comes at a time when the marketplace demand for actively managed ETF offerings is on the rise.
The active relief will apply to all three of ETC’s existing trusts created through partnerships with SEI, US Bancorp Fund Services and Citigroup/Foreside Fund Services respectively.
“As we continue to broaden the flexibility and mandates of our multiple series trust platform, the addition of active relief coincides with increased interest from hedge funds, mutual funds and separate account managers in bringing their strategies to market in ETF form,” asserts J. Garrett Stevens, CEO of ETC. “Our growth from one fund last March to five funds today with an additional 5 new funds slated for launch in the first half of the year is evidence of the strong demand for our platform.”
ETC’s first white label ETF product began trading in March 2012 under the Yorkville High Income MLP ETF moniker (ticker: YMLP). The successful launch of YMLP has stimulated interest from other potential sub-advisors in taking advantage of the accelerated path to market available through ETC’s platform.
“The traditional path to market for actively-managed ETFs is at least 18 months long given the SEC approval process. Beyond the exemptive relief process, sponsors need to keep in mind the 19b-4 process for each product, which will lengthen time to market. We are excited to help those looking to accelerate the process with our exemptive relief and operational support to navigate the regulatory complexities of launching and running an ETF,” comments Stevens.
ETC expects to continue to broaden the exemptive relief available to sub-advisors on its platform to allow for continued innovation and flexibility for managers to complement the operational, compliance, trading, marketing and public relations service capabilities available to sub-advisors on the platform.
About Exchange Traded Concepts
ETC is carving out a niche as a portal to launch new, custom exchange-traded funds efficiently and cost-effectively through a complete turnkey solution. ETC is a private-label ETF advisor with passive and active exemptive relief from the SEC to launch both domestic and international equity exchange traded funds under the Investment Company Act of 1940.
Investment managers, independent advisors, foreign managers and others seeking to launch an ETF for their strategy have the opportunity to build awareness and recognition for their brand as a private label ETF and, for a relatively low initial investment, launch an ETF in approximately one-third of the time it would take to launch an ETF from scratch.
ETC’s ETF-in-a-BoxTM Solution is a turnkey platform that provides time-sensitive and cost- effective methods to bring an exchange-traded fund to market. Seasoned ETF professionals have the operational and regulatory experience plus the industry contacts needed to navigate the complexities of launching and managing an ETF.
ETC has developed strategic relationships with other ETF service providers to assist ETC’s sub- advisors in navigating the exchange-traded fund launch process with the guidance necessary to maintain regulatory compliance.
ETC can assist your firm to successfully launch an ETF strategy. For more information, please go to www.ExchangeTradedConcepts.com.