Multifonds, the fund administration solutions provider, has agreed a strategic partnership with Ultumus, part of the SIX Group, that will facilitate access by Multifonds’ clients to an ETF technology platform and network of authorised participants and market makers.
The partnership is aimed at making it easier for fund providers to expand into the ETF market; it will provide a standard off-the-shelf connector on the Multifonds platform.
The collaboration gives Multifonds’ clients direct access to Ultumus’ specialised ETF technology platform and extensive network of Global authorised participants and market makers, enabled through a standard off-the-shelf connector now available on Multifonds platform.
Multifonds notes that the move reflects the continued strong growth in the global ETF market, and the need for asset managers to find efficient pathways to launch ETF share classes or convert existing mutual fund strategies into ETF wrappers.
With its fund administration and investor servicing platform currently supporting more than $10trn in assets across 40,000+ funds in 35 jurisdictions, the partnership “offers the market an integrated solution that eliminates the operational burden associated with ETF launches and administration,” commented Oded Weiss, CEO at Multifonds.
The deal sees Multifonds provide the established fund accounting and investor servicing platform already used by nine of the world’s top 15 global fund administrators.
For its part, Ultumus will contribute its specialised ETF infrastructure including the COSMOS platform for creation and redemption processes, advanced PCF (Portfolio Composition File) calculation capabilities, and established relationships/distribution network with European, Asian and Canadian authorised participants and market makers
The combined offering and connectivity enables end-to-end ETF operations from fund accounting through trading and settlement, all on an integrated technology stack
Bernie Thurston, CEO of Ultumus, commented: “The ETF market is evolving rapidly, and asset managers need partners who understand both the traditional fund administration business and the unique operational requirements of ETFs. Multifonds’ client relationships, combined with our specialised ETF technology and market maker network, create a powerful solution for firms looking to participate in the ETF growth opportunity without building entirely new infrastructure.”
Both firms note the timing of the announcement in respect of the shift to T+1 in Europe, alongside recent regulatory changes enabling ETF share classes of existing mutual funds, combined with strong investor preference for ETF structures due to tax efficiency and lower costs. These changes have accelerated demand for solutions that bridge the mutual fund and ETF worlds, they state.
Weiss added: “We’re seeing a fundamental shift in how asset managers and fund administrators think about product structure. This isn’t just about launching new products, it’s about giving existing fund families the tools to evolve with market demand. Our partnership with Ultumus provides that capability at scale.”
