U.S. Bank announced the launch of their new exchange-traded fund (ETF) services in Europe, as well as their first client for this offering. U.S. Bank will support Horizon Kinetics’ European version of their Inflation Beneficiaries ETF, an actively managed fund that seeks to address one of the most important economic and investment drivers – inflation – by identifying unique, scalable businesses that have the potential to thrive in an inflationary environment. The fund is structured as a UCITS ETF and will initially trade on Euronext Amsterdam.
“The ICE ETF Hub brings efficient workflows to trading in the ETF primary market and supports both standard and custom basket negotiations. These tools offer a standardized and simplified process for creating and redeeming ETF shares for U.S. Bank and its customers.”
U.S. Bank will provide clients with a holistic suite of offerings, including fund administration, transfer agency, depositary and global custody solutions, as well as a number of specialized European exchange-traded fund services. “This builds on our reputation in the United States as a provider of choice for many leading U.S. ETF issuers,” said Ken Somerville, head of U.S. Bank Global Fund Services Ireland. “We are proud to bring this capability to Europe and work with Horizon Kinetics as they roll out this exciting new product.”
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Somerville added, “We are in a position to service both existing U.S. Bank ETF relationships who plan to expand their ETF distribution into Europe, as well as new clients aiming to launch funds in the European ETF space. Our team is proud to bring the best of U.S. Bank to both sides of the Atlantic with a global operating model that can accommodate both U.S. and European UCITS funds in a single platform.”
Alun Williams, chief operating officer at Horizon Kinetics, stated, “This is a new market for us and we are delighted that U.S. Bank is able to guide us with on-the-ground expertise to offer our European clients a product that will follow a similar strategy to the Horizon Kinetics Inflation Beneficiaries ETF (Ticker: INFL US), emphasizing exposure to hard-asset, capital-light businesses.”
With this launch of ETF servicing in Europe, U.S. Bank is expanding their relationship with Intercontinental Exchange (ICE) as they adopt the ICE ETF Hub as a front-end and order entry platform for U.S. Bank’s ETF clients. The ICE ETF Hub is dynamic and fully integrated – streamlining primary market trading and allowing seamless subscription and redemption flow right through from the authorized participant to settlement in the secondary market.
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“We are excited to work with U.S. Bank to expand European ETFs, building on our vision of establishing a global, multi-issuer solution for the ETF market,” said Peter Borstelmann, president of ICE Bonds. “The ICE ETF Hub brings efficient workflows to trading in the ETF primary market and supports both standard and custom basket negotiations. These tools offer a standardized and simplified process for creating and redeeming ETF shares for U.S. Bank and its customers.”
U.S. Bank Global Fund Services, along with U.S. Bank Global Corporate Trust and Custody and U.S. Bancorp Asset Management, comprise the Investment Services division, which holds $9.8 trillion in assets under custody and administration as of Dec. 31, 2022. U.S. Bank offers Investment Services solutions from three European locations: Ireland, London and Luxembourg.
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