Advisors and investors have shown substantial demand for unlisted investment products
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Aequitas NEO Connect, a new fund distribution platform in Canada, has exceeded $200m in AUM for the funds transacted on it. The platform reached this landmark just over a year after its operational launch in May 2016.
“We are pleased to reach this milestone in such a short period of time as it affirms our commitment to meet the needs of Canadian investors with innovative technological solutions,” said Jos Schmitt, president and CEO of NEO.
“Together with Invesco, we pioneered a game-changing solution that recognizes and satisfies investors’ desire for lower-cost, fee-based products, and provides portfolio managers and investment advisors with a first-of-its-kind platform to access investment products not listed on an exchange with the same ease and efficiency as trading ETFs or publicly listed stocks,” he said.
According to the company, advisors and investors can use NEO Connect to purchase and redeem both prospectus and private/offering memorandum (OM) funds. At its launch, the platform hosted Invesco Canada platform-traded funds (PTFs); now, there are 46 PTFs available on the platform.
“PTFs were an industry breakthrough bringing a new type of solution to the retail asset space that addresses the realities of our industry,” said Peter Intraligi, president of Invesco Canada. “NEO Connect allows investors access to actively managed products with enhanced efficiency and cost savings.”
Open to all fund manufacturers, NEO Connect recently welcomed two OM funds from a new manufacturer. There are currently 12 active dealers on the platform, who collectively place an average of 150-200 transactions weekly.
“We leverage NEO Connect to provide access to actively managed products at a lower cost. This allows advisors with fee-based accounts to reduce fund fees while ultimately improving portfolio performance,” said Paul Adair, director and portfolio manager, Products and Services, Richardson GMP. “We have seen immense interest in these products from our advisors as they look for new ways to service fee-based accounts.”
“Ultimately, NEO Connect saves money for investors, makes transactions more efficient for advisors and dealers, and gives fund manufacturers choice in distribution,” Schmitt said.
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“We are pleased to reach this milestone in such a short period of time as it affirms our commitment to meet the needs of Canadian investors with innovative technological solutions,” said Jos Schmitt, president and CEO of NEO.
“Together with Invesco, we pioneered a game-changing solution that recognizes and satisfies investors’ desire for lower-cost, fee-based products, and provides portfolio managers and investment advisors with a first-of-its-kind platform to access investment products not listed on an exchange with the same ease and efficiency as trading ETFs or publicly listed stocks,” he said.
According to the company, advisors and investors can use NEO Connect to purchase and redeem both prospectus and private/offering memorandum (OM) funds. At its launch, the platform hosted Invesco Canada platform-traded funds (PTFs); now, there are 46 PTFs available on the platform.
“PTFs were an industry breakthrough bringing a new type of solution to the retail asset space that addresses the realities of our industry,” said Peter Intraligi, president of Invesco Canada. “NEO Connect allows investors access to actively managed products with enhanced efficiency and cost savings.”
Open to all fund manufacturers, NEO Connect recently welcomed two OM funds from a new manufacturer. There are currently 12 active dealers on the platform, who collectively place an average of 150-200 transactions weekly.
“We leverage NEO Connect to provide access to actively managed products at a lower cost. This allows advisors with fee-based accounts to reduce fund fees while ultimately improving portfolio performance,” said Paul Adair, director and portfolio manager, Products and Services, Richardson GMP. “We have seen immense interest in these products from our advisors as they look for new ways to service fee-based accounts.”
“Ultimately, NEO Connect saves money for investors, makes transactions more efficient for advisors and dealers, and gives fund manufacturers choice in distribution,” Schmitt said.
For more of Wealth Professional's latest industry news, click here.
Related stories:
Alternative exchange receives coveted designation
NEO announces platform support for OM funds
