OAKS, PA — CastleArk Management, a Chicago-based investment manager with $3 billion in assets under management, has chosen SEI’s Advisors’ Inner Circle Fund® (AIC) as its operational platform to launch its first active Exchange Traded Fund (ETF). The move comes in response to the burgeoning growth of active ETFs in both domestic and non-U.S. markets.
Jerry Castellini, President and Chief Investment Officer of CastleArk Management, said the decision to use SEI’s AIC platform was due to its comprehensive services and access to experts with a deep understanding of the ETF vehicle and marketplace. Castellini believes that this strategic relationship with SEI will support an efficient and cost-effective fund launch.
SEI’s AIC platform is designed to provide asset managers with a cost-effective way to operate their existing funds. It allows investment organizations to rapidly launch and grow mutual funds, exchange traded funds, interval, and tender offer funds without having to build their own fund operating infrastructure.
Mike Beattie, Managing Director of SEI’s Investment Managers business and President of the Advisors’ Inner Circle Fund, expressed his pleasure at supporting CastleArk in their first ETF launch. He emphasized the role of SEI’s turnkey operational platform and ETF expertise in efficiently bringing firms like CastleArk to the ETF marketplace.
The trend towards active ETFs has been surging. From the beginning of 2021 through the third quarter of 2023, 797 active ETFs were launched. Over the same period, assets under management in active ETFs grew by $273 billion, a staggering increase of 158%. This significant uptick has seen active ETFs’ market share of overall ETF assets nearly double from 3.2% to 6.1%.
John Alshefski, Senior Vice President and Head of Outsourcing Services for traditional managers at SEI, noted the popularity of the ETF structure among asset managers. They are keen to tap into the fast-growing ETF market due to its tax benefits and lower operating costs compared to mutual funds. The ETF structure is also becoming popular for niche strategies, as managers seek to offer more innovative investment vehicles.
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