Allfunds, Europe’s largest fund platform, with more than €280 billion in assets under management, is to launch a new ETF service from 1 June 2017 to supplement the 52,000 funds from 540 fund managers already available to investors.

Allfunds decision to offer ETFs to its distributors’ networks, has been welcomed by ETF providers who have said to Allfunds that the move could spur greater uptake of the products among retail investors

Allfunds Bank CEO Juan Alcaraz said: “Allfunds is always working to lead the development of Open Architecture in the funds industry. We therefore identified the demand and requirements for the distribution of ETFs for financial distributors and ETF providers.

“Buying an ETF in the stock market is one thing, incorporating ETFs in the wealth management industry’s current distribution framework is a completely different matter. We therefore believe that our ETF service position is unique and brings a new dimension to ETF distribution both for wealth managers and their retail investors”.

The move will provide wealth managers with a single point of access, using standardised processes for all ETFs and mutual fund transactions through their existing reporting and custody frameworks. Existing fund services will be supplemented with ETF-focused services relating to execution, reporting, information and research.

These services will have a wide range of features including multi-broker access, multi-custodian links and connectivity via equity standards. ETFs will also be offered with fractional dealing for those investing smaller sums of money.

Allfunds has agreed to offer enhanced services with selected ETF providers including BlackRock’s iShares, Lyxor, Source and Deutsche AM’s Xtrackers. These services include management information, educational programs and reporting services.