Exchange traded fund issuer Exponential ETFs has launched a fixed fee sub advisory and capital markets service for select partnered asset managers.
The new service provides select partners with combined portfolio management and capital markets solutions for a fixed fee as opposed to the traditional asset-based fee structure that results in higher costs for the fund manager as successful products attract assets.
“ETF issuers and index providers are under immense fee pressure,” says Phil Bak, CEO of Exponential ETFs. “We are creating a solution that allows emerging managers to offer competitively priced products to their clients. Fund managers should never be penalised for achieving success.”
Exponential ETFs will offer these fixed fee sub advisor services to select asset managers that align with the firm’s dedication to providing investors with low cost, innovative ETFs that fill an unsatisfied need within the market.
“By leveraging our extensive trading experience, capital markets sophistication, technology infrastructure and disciplined process, our partners can focus on building their businesses and passing those efficiencies on to their clients,” adds Charles Ragauss, CFA, Managing Director of Exponential Advisory Services.