Ultimus Experiences Tremendous Growth in the ETF Market

Number of ETFs serviced increased nearly 150% over the past two years

Feb 09, 2022

CINCINNATI, OHIO – 8, 2022 – Ultimus Fund Solutions® (Ultimus®), a leading independent, tech-enabled provider of full-service fund administration, accounting, and investor solutions, is pleased to announce its industry-leading growth in the ETF (exchange-traded funds) market, recording nearly a 150% increase in the number of ETFs serviced since 2020. This positions Ultimus as the third largest named ETF administrator in the US based on the number of ETF sponsors it supports.

Ultimus ETF executives credit this staggering growth to three specific items. The first is an overwhelming demand from new and established investment advisers looking to expand their portfolio offering. The second is Ultimus’ unique service model built for scale providing fund sponsors comprehensive solutions across the entire ETF ecosystem including a series trust model which enables them to bring new products to market in an efficient manner lowering the total cost of ownership. Lastly, the comprehensive experience of the onboarding team coupled with Ultimus’ proprietary technology has successfully supported this growth. As a result, the number of ETF sponsors serviced increased by 71% and ETF assets under administration (AUA) increased by 34% in 2021.

Early in 2020, staying ahead of trends, Ultimus was one of the first administrators to help advisers launch new ETFs under 6c-11 disclosure requirements while utilizing its tech-enabled solution, uETF. As part of Ultimus’ proprietary uSUITE® technologies, uETF provides automated workflow processing that supports basket creation, valuation, and dissemination of ETF data to required parties. uETF streamlines ETF processing operations and provides dashboards and user interfaces for full transparency into various processes. This results in increased efficiency, transparency, and reduced risk.

During the 2021 Global Custodian ETF Survey, a third-party industry survey, Ultimus received top scores in the technology and onboarding support categories from its investment adviser clients. In the survey results, one client confirmed the firm uses an educational and business partner approach to help advisers launch ETFs, saying, “Our Ultimus client service contact has curated our ETF launch and management experience from our very first launch and played a critical role in guiding us to successful launch when we knew nothing about the logistics and mechanics of launching.”

“Whether you are a new investment adviser just starting out, a mutual fund sponsor looking to start your first ETF, or an existing ETF sponsor looking to expand, Ultimus’ service model is attractive because it offers optionality and flexibility for fund sponsors in selecting partners within the ETF ecosystem needed for a successful launch,” said Michael Prendergast, Senior Vice President, ETF Senior Product Specialist at Ultimus. “We have established strong working relationships with lead market makers, APs, exchanges, and custodians, which simplifies operations, reduces costs, and accelerates the timeline for launching new ETFs. This is highly attractive for new advisers and for established firms that are looking to expand their business model with ETFs.”

Addressing Ultimus’ leadership in the ETF space, Gary Harris, EVP Head of Sales, commented, “Our ETF growth in 2021 was impressive and we expect it to continue. What sets us apart from other firms is our commitment to investing in technology and in our people. Ultimus is poised to gain even more market share in 2022. Our ETF service model meets the demand of newer investment advisers and experienced fund sponsors who are looking for products that can be easily tailored to their unique client base.”

About Ultimus

Ultimus Fund Solutions (Ultimus) is a leading provider of full-service fund administration, accounting, 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, New York, Philadelphia, and Boston, Ultimus employs more than 800 seasoned accountants, attorneys, paralegals, application developers, fund administrators, compliance specialists, and many others with years of experience in the financial services industry. Servicing over 1,500 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.

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