Spa ETF Europe, a specialist provider of exchange-traded funds launched earlier this year by independent investment adviser and asset manager London & Capital, has awarded a mandate fo
Spa ETF Europe, a specialist provider of exchange-traded funds launched earlier this year by independent investment adviser and asset manager London & Capital, has awarded a mandate for European custody and administration services to BNY Mellon Asset Servicing, the global asset servicing leader created by the merger of Bank of New York and Mellon.
Spa ETF Europe, which plans to offer enhanced ETFs based on MarketGrader indices to global private and institutional investors from the autumn, has mandated BNY Mellon Asset Servicing to provide full sub-advisory services, including global custody, trustee, fund accounting and fund administration, and appointed BNY Mellon Asset Management as sub-advisor for its new family of ETFs, to be launched in the UK in September.
‘In preparation for the launch of our fundamentals-based exchange-traded funds, it was important to identify an investor services provider with an established track record and a truly global model,’ says Daniel Freedman, a director of Spa ETF International and joint managing director of London & Capital. ‘We are confident that BNY Mellon Asset Servicing presents the best strategic fit to help us achieve our long-term growth plans.’
Nadine Chakar, executive vice-president at BNY Mellon Asset Servicing, says: ‘Our appointment further cements the dominant role BNY Mellon Asset Servicing enjoys in the ETF marketplace. We are delighted to be partnering with Spa ETF Europe at this exciting stage in the company’s development and look forward to working alongside the team as their business grows over the coming months.’
Spa MarketGrader ETFs will track the performance of US stock indices created according to the quant-based methodology of research provider MarketGrader, which has been demonstrated consistently to outperform major US indices. This uses a set of 24 quantitative filters within the areas of growth, value, profitability and cash flow to carry out a fundamental evaluation of more than 5,600 North American stocks.
Its indices are also characterised by the equal weighting of all securities, and diversification rules designed to avoid the pricing anomalies that arise out of traditional market capitalisation-based indices. Each MarketGrader index periodically adjusts its holdings to maintain an equal weighting for all stocks and ensure that holdings are of optimal grade.
Headquartered in London, Spa ETF Europe is a subsidiary of Spa ETF International, an independent provider of ETFs. The ETF provider is supported by London & Capital, which offers services including investment expertise, research, quantitative analysis and regulatory authorisation and has USD3bn in assets under management.
BNY Mellon Asset Servicing provides clients worldwide with a range of specialised asset servicing capabilities, including custody and fund services, securities lending, performance and analytics and execution services, through Bank of New York, Mellon Bank and other related companies. Bank of New York Mellon Corporation, which operates in 37 countries and serves more than 100 markets, has more than USD20trn in assets under custody and administration and more than USD1trn in assets under management.