CIBC Mellon has launched asset servicing for platform-traded funds (PTFs) on NEO Connect, a new low-cost distribution channel accessible to all investors, asset managers and their dealers who want more efficient and lower cost transactions in assets not listed on a stock exchange.
PTFs trade at net asset value per share/unit through a market and are designed for investors with fee-based accounts who are seeking low-cost, managed portfolios.
CIBC Mellon will act as a clearing and settlement agent, leveraging connectivity with NEO to enable investment fund providers to create platform-traded classes of their funds.
Ronald Landry, head of product and Canadian exchange-traded fund services at CIBC Mellon, said: “The Canadian investment industry continues to innovate in response to investor demand for lower-cost solutions. PTFs are key step forward in enabling new efficiencies in administration and distribution.”
He added: “We are pleased to support our clients by helping them simplify the PTF administration process and deliver new cost-efficient fund solutions for Canadian investors.”
Jos Schmitt, president and CEO of NEO, commented: “We are pleased to collaborate with CIBC Mellon and a number of its investment fund clients in providing an innovative, and efficient solution that enables investors to access an array of management strategies. With our recent expansion into the mutual fund dealer community, PTFs continue to grow in popularity with advisors and investors.”
