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Competition in the European ETF market is on an upswing

Why it is crucial to find the right partners

Rollercoaster

The race for market share in the fast-growing European ETF industry is on. As competition intensifies, asset managers must move at a faster clip than ever before.

Yet the rising tide of regulations, intensifying ESG considerations and ever-growing investor demands make it difficult to keep pace in a crowding market – let alone get ahead.

A trusted partner can make the difference. SEI delivers technology and investment solutions that connect the financial services industry.

With capabilities across investment processing, operations, and asset management, their team services some of the most complicated structures in the industry.

Many have tapped their breadth of expertise to enter the European market. Their comprehensive ETF services include account administration, trade order processing, distribution, legal support and risk mitigation.

In the past two years alone, SEI has been instrumental in facilitating the launch of over 40 new Irish-domiciled UCITS products for new entrants, using an “apt” approach.

What is an “apt” approach?

Agility:

Against ever-shifting market challenges, the ability to pivot is imperative to success in the European ETF market. By embracing an agile mindset, SEI has demonstrated a proven track record of navigating industry pressures all while ensuring the timely launch of complex new products for their clients. Recently, SEI facilitated a successful launch of a range of synthetic bespoke-index tracking ETFs, the first of their kind in Europe.

The team was able to seamlessly facilitate these launches in unchartered territories, crediting an aptitude to react to challenges and an ability to move quickly with accuracy.

Partnership:

Launching an ETF for the first time can be daunting. Managers can ease their fears by finding a trusted resource that knows the course. SEI takes a partnership approach to service delivery and works side-by-side with ETF issuers to overcome challenges and reach economies of scale across global markets in the quickest possible timeframe.

The European market can be particularly intimidating for US entrants with limited knowledge of the different regulatory demands. SEI works closely with their US clients, providing ongoing advice around UCITS regulatory controls and takes a vested interest in assuring funds are operating in-line with European industry standards.

Technology:

Firms must take a critical eye to their operating model. Relying on manual processes and legacy systems present too great of a risk for both new entrants and established managers alike.

An expanding market and escalating pressures demand operating infrastructure built on technology you can trust.

As a pioneer in the ETF industry, SEI has developed the operational infrastructure needed to tackle the growing complexities of distribution, compliance and product strategy in the European market. Their integration of industry-leading technology and APIs connected to issuers and third-party providers not only offer managers relief from operational burdens, but present a chance to get ahead.

This article first appeared in ETF Insider, ETF Stream's monthly ETF magazine for professional investors in Europe. To read the full magazine, click here.

About SEI® SEI (NASDAQ:SEIC) delivers technology and investment solutions that connect the financial services industry. With capabilities across investment processing, operations, and asset management, SEI works with corporations, financial institutions and professionals, and ultra-high-net-worth families to solve problems, manage change and help protect assets—for growth today and in the future. As of March 31, 2023, SEI manages, advises, or administers approximately $1.3 trillion in assets. For more information, visit seic.com

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