US Bancorp launches Multiple Series Trust to speed up ETF listings

Feb 21st, 2012 | By | Category: ETF and Index News

US Bancorp Fund Services has announced the launch of its first ETF multiple series trust (MST) and a partnership with Exchange Trade Concepts (ETC). This newest trust, called ETF Series Solutions (ESS), extends the benefits of a shared trust model to one of the industry’s fastest growing segments.

US Bancorp launches Multiple Series Trust to speed up ETF listings

US Bancorp has launched an ETF multiple-series trust, a development that should make it easier for new ETFs to come to market.

AlphaClone and Zacks Investment Management will be the first two funds for the trust. AlphaClone will be offering one fund and Zacks Investment Research will be offering two funds, all with unique strategies.

“This new MST and partnership with Exchange Traded Concepts help make entering the ETF market incredibly easy for investment managers,” said Joe Redwine, president of US Bancorp Fund Services. “We continuously strive to find new ways to help our clients focus on investing while capitalising on developments in the market. Our new MST continues that tradition.”

ETC, a private-label ETF adviser, serves as the investment manager. As an advantage to funds in the shared trust, existing investment advisers and trust-level exemptive relief eliminates the cost and time to file separately, and significantly decreases time to market. Although each fund will be responsible for fund-specific expenses, certain expenses are shared by all funds in the Trust, including general legal services, Board of Trustee costs, insurance, and the trust’s Chief Compliance Officer.

“Given their long-standing history in the mutual fund market and strong financial background, we are excited and fortunate to partner with US Bancorp Fund Services to help launch this MST,” said Garrett Stevens, chief executive officer of ETC. “Both of our companies are committed to growing the Trust and, given the increase in awareness in the ETF market, this is an ideal product to launch now.”

ESS marks the fifth MST for US Bancorp Fund Services. In December, US Bancorp introduced its ETF servicing solution called ETF-Fusion, offering consultative support including product development and implementation, along with proprietary technology. ESS combines the benefits of ETF-Fusion with the additional benefits of a shared trust model. Currently, US Bancorp’s shared trusts have $12.5 billion in mutual fund assets, 113 participating funds, 166 classes, and 58 different advisers.

“The ETF MST is a new concept in the industry that enables investment advisers to build awareness and recognition for their brand as a private-label ETF and launch an ETF in approximately 75 days for a minimal initial investment,” said Eric Falkeis, officer of ESS and chief financial officer of US Bancorp Fund Services. “Our ETF professionals have the operational and regulatory experience, plus the industry contacts needed to navigate the complexities of launching and managing an ETF.”

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