Forum Investment Advisors, an affiliate of fund administrator Atlantic Fund Services, has launched the Forum ETF Trust, a series trust that will allow independent investment advisors launch and operate privately-branded actively managed ETFs.
The trust will use an investment manager–investment advisor rather than an advisor–sub advisor structure.
According to the company, the distinction is important because, "while FIA will serve as investment manager to the trust and has responsibility for certain compliance and oversight functions, the trust’s advisers have sole responsibility for investment decisions."
Both FIA and the trust are affiliates of fund services provider Atlantic Fund Services.
“The manager-adviser structure allows each adviser to contract directly with Forum ETF Trust and to manage portfolios under its own brand,” stated Stacey Hong, president of Atlantic.
Merk Investments is the first investment advisor who signed onto the trust. Foreside Fund Services is the distributor.
Here is the press release:
An Innovative Series Trust for Actively Managed ETFs Enters the Market
PORTLAND, Maine--Forum Investment Advisors, LLC (FIA) has launched Forum ETF Trust, a series trustdesigned for independent investment advisers to launch and operate adviser-branded actively managed ETFs. Forum ETF Trust offers all the benefits of a traditional shared trust, with an important innovation. The Trust will use an investment manager–investment adviser structure rather than the typical adviser–sub adviser structure. The distinction is important because, while FIA will serve as investment manager to the Trust and has responsibility for certain compliance and oversight functions, the Trust’s advisers have sole responsibility for investment decisions.
“Atlantic has been a tremendous partner in managing the ETF registration, listing and operational processes for us. Given the complexity and cost of launching an ETF, working with a trusted provider on a shared trust is the ideal solution for bringing the fund to market”
The SEC recently issued the Trust an order enabling investment advisers to launch private label actively managed ETFs. FIA and the Trust are affiliates of Atlantic Fund Services, a global fund services outsource provider. Atlantic provides regulatory, compliance and corporate governance expertise to the Trust as well as the operational efficiencies of an advanced ETF processing platform.
“The manager-adviser structure allows each adviser to contract directly with Forum ETF Trust and to manage portfolios under its own brand,” stated Stacey Hong, president of Atlantic. “Combined with the efficiencies of a shared ETF vehicle, this is an optimum, cost-effective, turn-key solution for independent advisers seeking to bring actively managed ETFs to market,” Mr. Hong adds.
Forum ETF Trust is structured to include actively managed ETFs managed by various investment advisers. Merk Investments LLC, the Palo Alto, CA based pioneer in the currency asset class is the first investment adviser to tap into Forum's innovative ETF structure. “Atlantic has been a tremendous partner in managing the ETF registration, listing and operational processes for us. Given the complexity and cost of launching an ETF, working with a trusted provider on a shared trust is the ideal solution for bringing the fund to market,” said Axel Merk, President of Merk Investments, LLC. “Our confidence in Atlantic’s capabilities is buttressed by our experience with their administration of our currency funds, including the mutual fund version of the Merk Hard Currency Fund (MERKX),” continued Mr. Merk.
Forum ETF Trust is part of the Forum Family of Funds, a private label turn-key mutual fund platform with over $6 billion in assets under administration. “We are pleased to expand our capabilities and product offering to include ETFs,” commented Mr. Hong, “and believe that our unique offering is a direct result of the coordinated efforts between Atlantic and Merk Investments.”
About Atlantic Fund Services
Atlantic Fund Services is a global third party fund administrator with $18 billion in assets under administration and operations in the U.S., Luxembourg and Poland. Atlantic Fund Services provides comprehensive fund administration, fund accounting, transfer agency, distribution and compliance solutions. Atlantic Fund Services supports registered and unregistered investment advisors, and advisors to pension funds, mutual funds, hedge funds, UCITS, SIFs, common and collective funds, ETFs and other pooled investment products. For more information, please visit www.atlanticfundservices.com and www.forumseriestrust.com.
Important Disclosure
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund’s website or calling toll free at (866) MERK FUND. Please read the prospectus carefully.
Foreside Fund Services, LLC, distributor.
Since the Fund primarily invests in foreign currencies, changes in currency exchange rates affect the value of what the Fund owns and the price of the Fund’s shares. Investing in foreign instruments bears a greater risk than investing in domestic instruments for reasons such as volatility of currency exchange rates and, in some cases, limited geographic focus, political and economic instability, emerging market risk, and relatively illiquid markets. The Fund is subject to interest rate risk, which is the risk that debt securities in the Fund’s portfolio will decline in value because of increases in market interest rates. The Fund may also invest in derivative securities, such as forward contracts, which can be volatile and involve various types and degrees of risk. If the U.S. dollar fluctuates in value against currencies the Fund is exposed to, your investment may also fluctuate in value. For a more complete discussion of these and other Fund risks please refer to the Fund’s prospectus.
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