AQGX, AI Quality Growth ETF
RHTX, RH Tactical Outlook ETF
RHRX, RH Tactical Rotation ETF
NEWS RELEASE BY Nottingham
The Nottingham Company (“Nottingham”), a leading non-bank ETF fund administrator and consultant to the mutual fund and ETF industry, is pleased to announce completion and launch of three new ETF conversions from open-end mutual funds. Each of the ETFs is part of the Adaptive ETFs family of funds. Two additional mutual fund to ETF conversions are expected to launch next week.
The three ETFs have listed under the tickers AQGX, RHTX, and RHRX. The AI Quality Growth ETF (previously, the Adaptive Fundamental Growth Fund), RH Tactical Outlook ETF (previously, the Adaptive Tactical Outlook Fund), and RH Tactical Rotation ETF (previously, the Adaptive Tactical Rotation Fund) are managed by Scott Wetherington at Adaptive Investments.
Nottingham was the first fund administrator to shepherd a mutual fund to ETF conversion in May of this year. The process of a mutual fund to ETF conversion involves multiple steps, which Nottingham worked through with the SEC on both the initial conversion in May and followed the same process and steps with these additional conversions and also the additional conversions expected to hit the market early next week.
The New York Stock Exchange was chosen as the listing venue for each of the conversions thus far.
Nottingham is the only boutique non-bank fund administration firm that currently has the ability to process ETFs on a straight through basis, as transfer agent for the ETFs, and fund accountant and provider of the nightly PCF (portfolio composition file). The other primary outlets are major bank custodians.
“We are excited and proud to continue as trend setters in the mutual fund and ETF markets.”, stated Adaptive Investments CEO Greg Rutherford. “Our primary clients are wealth management firms, and their clients like the convenience and tax efficiency of ETFs. Our first launch in May has proven quite successful, and we look forward to a similar path for these five net ETF conversions.”
Kip Meadows, Founder and CEO of Nottingham, indicates Nottingham has had mutual fund conversions to ETFs on its radar for a few years, and is pleased to be an industry trailblazer with these successful conversions. “We believe there will be a significant number of open-end mutual funds that will want to convert to ETFs in the next few years, and we are very pleased to be the first, and we believe only, fund administrator and private label issuer with success in this process”.
Katherine Honey, President of Nottingham and affiliate ETF RIA OBP Capital, LLC added, “We could not have pulled off these esoteric filings and processes without the excellent help of our internal legal team and outside counsel Greenberg Traurig, LLP. We feel like we are well positioned moving forward for more conversions.”
About Adaptive Investments
Adaptive Investments provides adaptive, risk-adjusted investment solutions for financial advisors seeking to better position their clients for changing market conditions. Through an adaptive-correlation-based suite of ETF and SMA products, Adaptive targets relative returns in up markets while seeking to decrease risk during turbulent periods. Adaptive performs exhaustive research and testing to select industry-leading tactical strategist and employ their processes in the Adaptive platform. Founded in 2015, Adaptive Investments is the investment advisor to the Adaptive ETS. Adaptive Investments is located in Alpharetta, GA.
Since 1988, Nottingham has offered consulting for investment fund organization, and ongoing operations support for mutual funds and ETFs including fund accounting, compliance administration, and transfer agency for those funds. Nottingham offers a full range of turnkey services, managing relationships between clients and all outside vendors and services, including lead market markets and Authorized Participants, prime brokers and custodians, outside legal counsel, independent auditors, custodians, printers, insurance companies, and the funds’ Board of Trustees. Nottingham remains one of the largest privately held fund administration firms in the US operating quite efficiently from eastern North Carolina.