Navigating the European ETF Landscape with the Acolin Distribution Network Management (DNM) service
15th December 2023
In the ever-changing world of financial markets, Exchange-Traded Funds (ETFs) have become increasingly popular among investors. As the fund flows numbers for 2023 roll in, we again see that investors are replacing holdings on traditional UCITS funds with investments in ETF’s. Acolin is at the center of fund distribution in Europe and our specialized Distribution Network Management (DNM) service has seen these changes first-hand. Here we explore the nuances of Acolin DNM service and how it seamlessly integrates ETFs into key distribution platforms.
1. Listing ETFs on distribution platforms:
Through the Acolin DNM service ETFs are listed on a wide range of European distribution platforms. Our fund manager clients benefit from the ability to list ETFs alongside traditional funds, meeting the distribution demands of these platforms, and their underlying investor clients.
2. Distribution Agreements for ETFs:
Like traditional funds, distribution platforms require agreements with ETF providers for the listing of funds. Acolin DNM service streamlines this process, ensuring that ETFs can be seamlessly listed, and distribution agreements can be efficiently managed. With our installed base of over 300 distribution agreements, we are already where managers what to go.
3. Commission-Free Trading in the Secondary Market and tracking holdings
One distinctive feature of ETFs is the absence of commissions during trading in the secondary market. Despite this asset managers want to track who is invested in the ETFs on the various distribution platforms, and Acolin holdings reconciliation service facilitates this. As pan-European distribution regulations evolve, Acolin is at the forefront of changing requirements, and our holdings technology and distribution platform relationships put us in a unique place to assist ETF managers stay ahead of change.
4. Managing Listing Fees with Acolin DNM:
Platform listing fees are a significant and growing consideration for ETF managers. The Acolin DNM service plays a crucial role in managing and facilitating agreements related to listing fees. This ensures a transparent and efficient process for all parties involved.
5. Data Feeds for ETFs:
Just like traditional funds, distribution platforms require reliable data feeds for ETFs. Failure to have the right fund data on the right system is a real limitation to asset gathering. The Acolin DNM service ensures that accurate and timely data is provided, meeting the stringent requirements of distribution platforms, and enhancing the visibility of ETFs in the market.
6. DDQs (Due Diligence Questionnaires) and Compliance for ETFs:
The due diligence questionnaires (DDQs) and compliance standards applied by distribution platforms are consistent for both ETFs and traditional funds. Acolin DNM service ensures that ETFs meet these standards, aligning with the platforms’ internal compliance protocols and providing a seamless experience for clients.
In conclusion, Acolin Distribution Network Management service plays a pivotal role in bridging the gap between ETFs and distribution platforms. By addressing key aspects such as listing, agreements, fees, data feeds, and compliance, Acolin facilitates a smooth and efficient process for fund managers and investors alike. As the ETF landscape continues to evolve, Acolin remains at the forefront, offering innovative solutions to meet the diverse needs of the financial industry.