Platform Traded Funds (PTFs) are the name given to managed mutual funds that act and settle in the same way as exchange-traded funds (ETFs). Like ETF’s they can be traded through a dealer’s existing equity-trading system.
The new platform represents the first time on an industry wide basis that mutual funds can be traded in the same way as ETFs.
The technology will leverage the PTF structure with technology previously developed by Invesco Canada.
As a result of the new service, mutual fund companies will see their costs reduced as the model is based on setup fees per fund and assets under administration.
President and CEO of Aequitas Innovations, Jos Schmitt said: “We have listened to the needs of the mutual fund industry and investment advisors across Canada. It was abundantly clear that mutual fund companies want to sell actively managed products via an efficient and accessible process.
“Our nimble operations and technological agility, leveraging Invesco’s intellectual property, has allowed us to rapidly respond to this demand.”
Peter Intraligi, president and CEO of Invesco Canada spoke of the development of the technology.
“We believe our PTF solution was a breakthrough for investing and has solved a number of challenges unique to fee-based investing,
“Based on discussions we have had with other companies, we investigated multiple avenues to make PTFs available on an industry-wide basis for the benefit of all clients.”