Industry Updates

U.S. Bancorp Fund Services, LLC launches exchange traded funds service, ETF-Fusion

Tuesday, December 06, 2011

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Opalesque Industry Update: U.S. Bancorp Fund Services, LLC has announced the launch of its Exchange Traded Funds (ETF) service called ETF-FusionTM.

With ETF-Fusion, USBFS is now able to serve investment managers sponsoring either existing or startup ETF products, with consulting support including product development, implementation, and proprietary technology.

ETFs are the industrys fastest growing segment and we are pleased to provide an innovative solution to support this unique product, said Joe Redwine, president of USBFS. With a full-service system, including distribution and custody support, we are offering something new and valuable to the industry.

ETF-FusionTM offers numerous benefits through two new systems and addresses the unique needs of an ETF: DASHTM (Direct Access to a Secure Hub) -- A trade application updated in real time that provides an automated interface between fund sponsors, distributors and authorized participants. Benefits include:

Excel-enabled Web query order reports can be provided in real time. DASH allows online management of both fixed and variable fees, as well as soft cut-offs on trades;
Distributors, sponsors, and authorized participants receive automatic confirmations of trades and are able to quickly revise and make decisions through a live, online dashboard;
All fax and Web orders are personally affirmed to reduce and mitigate risk;
Impromptu holiday forecasting and automatically supports regular and reverse splits and;
A dedicated service team which can provide technical support and create login credentials for various users.

GeniusTM -- A central database contained within the core of USBFS fund accounting and inventory systems integrates all ETF applications. Benefits include:

Benchmark data, fund data and order data are all directed and contained within the database;
Portfolio Composition File (PCF), Intraday Indicative Value (IIV) and in-kind trade files are transmitted and received between the funds records, DASHTM, the DTCC/NSCC, the New York Stock Exchange (or alternate IIV agent), and the funds custodian for Continuous Net Settlement (CNS) processing; and
Integration between DASHTM, the funds books and records, continuous net settlement, and custodians results in smooth settlements. GeniusTM enables a clients core accounting team to manage its daily core accounting functions simultaneously with added ETF processing requirements resulting in a singular approach to ETF servicing.

In addition to simplifying the processes of ETF trading, USBFS automated processes that traditionally have been manual, and made ETFs a much more efficient option for investment managers,said Eric Falkeis, chief financial officer of USBFS.

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