October 7, 2020
ROCKY MOUNT, N.C. – The Nottingham Company, Inc. a leading fund services administrator and private label issuer to the mutual fund and exchange-traded fund (“ETF”) industry, continues to expand its active non-transparent ETF offering by announcing today that the Security and Exchange Commission (“SEC”) has approved the firm’s short-form exemptive relief application for the New York Stock Exchange’s (“NYSE”) Actively Managed Solution℠ (AMS) ETF structure. This is the second such announcement within the past 2 months, as the SEC made the firm’s exemptive relief application for Blue Tractor’s Shielded Alpha℠ non-transparent structure effective in August.
“We are excited to receive this news as it means portfolio managers who manage active portfolio strategies can now issue their own branded AMS℠ ETFs through our white-label ETF structure. With the AMS℠ approved for our affiliated investment advisor, our ETF Series, and our transfer agent and custody solutions, we believe Nottingham is currently the only private label ETF issuer with all these capabilities,” remarked Kip Meadows, Founder and CEO of Nottingham.
NYSE’s AMS℠ ETF structure wraps actively managed portfolio strategies in an ETF that uses proxy holdings for a portion of the portfolio, keeping important aspects of the portfolio manager’s strategy confidential. ETFs utilizing AMS℠ combine the tax and trading ease benefits of an ETF with enough non-transparency to protect the advisor’s intellectual property.
“We organized OBP Capital and the Spinnaker ETF Series with active managers in mind, and the AMS℠ structure makes that option more attractive to active portfolio managers,” according to Katherine Honey, Managing Member of OBP Capital, LLC.
Nottingham has been providing consulting and operations administration for open-end mutual funds, ETFs, closed-end interval funds, and private investment funds since 1988. The firm also offers unitized accounting and reporting to foundations, endowments, and government investment pools. It remains one of the largest privately-held fund administration firms in the U.S., currently administering over $31 billion in AUA.
Nottingham affiliate OBP Capital, LLC was established to assist Nottingham clients with ETFs, holding exemptive orders for both active and passive ETF structures. OBP Capital provides the oversight and compliance management necessary to effectively operate as an ETF investment advisor in partnership with subadvisor portfolio managers.