Exponential ETFs launches first-of-its-kind fixed-fee sub-advisory service

Aug 30th, 2017 | By | Category: ETF and Index News

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Exponential ETFs, a wholly owned platform of Michigan-based boutique asset manager ACSI Funds, has announced the launch of its fixed-fee sub-advisory and capital markets service for select asset managers.

Phil Bak, CEO of Exponential ETFs

Phil Bak, CEO of Exponential ETFs.

The fixed-fee service is a first for the industry. It marks a change from the traditional asset-based fee model which is currently standard practice and results in high costs for fund managers as successful products attract assets.

Phil Bak, CEO of Exponential ETFs, commented: “ETF issuers and index providers are under immense fee pressure. We are creating a solution that allows emerging managers to offer competitively priced products to their clients. Fund managers should never be penalized for achieving success.”

Charles Ragauss, managing director of Exponential Advisory Services, added: “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.”

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.

In addition to portfolio, trade and tax management, Exponential ETFs also offers a variety of capital market services such as portfolio compliance review, liquidity sourcing, real time monitoring, index construction, creation/redemption basket management and risk management.

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