Citco Fund Services has launched Citco Mutual Fund Services to meet the growing demand for liquid alternatives structures, which provide access to alternative investment strategies via more traditional structures such as mutual funds or exchange-traded funds.
The new company will extend Citco’s expertise in alternative assets to include 40 Act fund administration in conjunction with a strategic alliance with Huntington Asset Services, a subsidiary of Huntington Bancshares Incorporated.
“Retail investors are increasingly interested in alternative asset classes as an additional source of yield, and we are starting to see alternative fund managers set up 40 Act structures to accommodate them. Citco has always been singularly focused on adapting our services to meet our clients’ needs, whether it’s enhanced middle office, risk or the administration of 40 Act funds,” says Jay Peller, global head, sales and product development, Citco Fund Services.
Alternative fund managers face a variety of unfamiliar requirements to operate a liquid alternatives structure, including new portfolio restrictions, additional regulatory oversight, further fund governance and regular investor communications. Responding to this need, Citco has taken its alternative asset pedigree and allied with HASI for 40 Act operational services to provide a holistic fund offering to alternative managers and their investors.
“Huntington and Citco share core beliefs about the culture we create for our colleagues and the approach we take with our customers,” says Joe Rezabek, president, Huntington Asset Services. “This common bond, along with our complementary technical expertise creates a powerful relationship for the marketplace.”