CINCINNATI, OHIO – August 9, 2023 Ultimus Fund Solutions® (Ultimus®), a leading independent provider of full-service, technology-enhanced fund administration, accounting, and investor solutions, is pleased to announce its role in the launch of Beacon Capital Management’s (Beacon) first series of exchange traded funds (Beacon ETFs). Beacon, an investment advisory firm managing nearly $5.1bn in assets and specializing in delivering separately managed account (SMA) strategies to the independent RIA, broker-dealer, and regional bank channels, sought diversification in its product offering to provide its intermediary clients the ability to use a Beacon ETF as a core holding in investor investment portfolios.
Beacon initially reached out to Ultimus and shared information about the market demand for its risk-differentiated equity strategies in various wrappers. After product strategy discussions with Ultimus’ experienced professionals and consultation with distribution partners, Beacon decided that launching an ETF would be the most beneficial route for the firm and its investors. By expanding its product offering with an ETF, Beacon could offer greater tax efficiency and intra-day liquidity while enabling investors to access its highly regarded strategies at lower minimum investments. At the same time, it realized the benefit of opting to launch the Beacon ETFs in Ultimus’ established series trust model, accelerating time to market and lessening the administrative workload.
As these ETFs were Beacon’s first registered funds, Ultimus played a pivotal role in advising the firm on its product strategy and the best practices to accomplish the launch. Ultimus helped to identify key players such as listing exchanges and lead market makers, leading to the launch of the two Beacon ETFs – the Beacon Tactical Risk (NYSE Arca: BTR) and Beacon Selective Risk (NYSE Arca: BSR) – earlier this year. Along the way, Ultimus worked closely with Beacon in developing a tailored operating model to fit the firm’s business needs.
Chris Cook, Beacon’s President and Chief Investment Officer, explains the importance of working with a proven strategic partner that can identify client specific needs and develop a strategy that works effectively to achieve its goals. “With any new undertaking, especially a project as elaborate as a dual-ETF launch, it’s extremely important to have a partner with the depth and breadth of knowledge in all aspects of the process. Ultimus listened to our goals, helped us develop the appropriate product strategy, and connected us with partners in the ETF ecosystem best suited for our plan. They kept the process on track with superb project management and helped make complex transactions as seamless and timely as possible.”
Michael Prendergast, SVP, ETF Senior Product Specialist, spoke about the emerging trend of wealth managers introducing ETFs to augment their SMA strategy or overall portfolio. “We are seeing more and more clients that have a limited homogeneous product offering consider the advantages of diversifying and launching an ETF. Wanting to expand their product line, Beacon was able to capitalize not only on our breadth of knowledge and resources, but our comprehensive services and solutions that ultimately led to a timely, efficient, and cost-effective launch. We look forward to an ongoing partnership and the future growth of Beacon Capital Management and the entire Sammons Financial Group Enterprise.”
Ultimus has become one of the largest named administrators for ETFs by number of clients serviced. Over the past two years, Ultimus has assisted 23 new ETF label advisers enter the ETF marketplace with their first ETFs products, supporting new fund launches and multiple conversions from mutual funds and SMAs into ETF wrappers.
Ultimus Fund Solutions (Ultimus) is a leading provider of full-service technology-enhanced fund administration, accounting, middle office, and investor solutions to support the launching and servicing of registered funds, private funds, and public plans. The company also offers customized structures designed for the unique needs of pensions, endowments, foundations, and other large institutions. Ultimus’ deep commitment to excellence is achieved through investments in best-in-class technology, compliance programs, organization-wide cyber security efforts, and hiring seasoned professionals.
Headquartered in Cincinnati, Ohio with offices in other major cities such as Chicago, Denver, New York, and Boston, Ultimus employs more than 975 seasoned accountants, attorneys, paralegals, application developers, fund administrators, compliance specialists, and many others with years of experience in the financial services industry. Servicing over 1,800 total traditional and alternative funds, Ultimus helps investment managers and fund families flourish in today’s increasingly sophisticated and dynamic investment landscape. For more information, visit www.ultimusfundsolutions.com.
Beacon Capital Management, Inc. (Beacon), a registered investment adviser (RIA) firm located in Dayton, Ohio, offers separate account management (SMA) strategies and turnkey asset management program (TAMP) solutions to advisors and their retail clients. Beacon was founded in 2000 with the goal of providing long-term investors with innovative investment solutions that work to capture gains while seeking to limit losses from market volatility. In addition to its investment advisory services, the firm seeks to empower advisors with turnkey marketing, operational and account management support. For more information about Beacon, visit www.BeaconInvesting.com.
The Beacon Tactical Risk and Beacon Selective Risk ETFs (collectively, “Beacon ETFs”) are offered by prospectus. Carefully consider the investment objectives, risks, charges, and expenses. This and other important information can be found in each of the Beacon ETF prospectuses, which should be read carefully before investing and can be obtained here or by calling 866.439.9093. The Beacon ETFs are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Beacon Capital Management & Sammons® Financial Group, Inc. are independent of and not affiliated with Northern Lights Distributors, LLC.
Important Risk Information:
All investing involves risk, and asset allocation and diversification do not guarantee a profit or protection against a loss. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, might be worth more or less than their original cost. ETFs are subject to risks similar to those of stocks, as well as other risks specific to the particular ETF.
ETF shares are traded on exchanges, and are traded and priced throughout the trading day. ETFs permit an investor to purchase a selling interest in a portfolio of stocks throughout the trading day. Because ETFs trade on an exchange, ETF shares are bought and sold at market price (not NAV). The prices of ETFs may sometimes vary significantly from the NAVs of a ETFs’ underlying securities. Brokerage commissions will reduce returns.
The Beacon ETFs are new ETFs and have a limited history of operations for investors to evaluate.