NEO announces platform support for OM funds

Canada’s newest fund distribution platform offers efficiencies similar to ETF trading

NEO announces platform support for OM funds
Aequitas NEO Connect has launched offering memorandum (OM funds) on its platform. With the new development, purchase and redemption of both prospectus and OM funds can be done in a similar fashion to ETF trading.

“Our innovative technology enables fund manufacturers, portfolio managers and investment advisors to be more efficient, to the benefit of the end investor,” said NEO Connect President and CEO Jos Schmitt. “With NEO Connect now supporting OM funds, we are not only growing our offering but taking our first operational step towards servicing the Canadian private markets, in line with our original commitment.”

Since NEO Connect’s launch in May, the existing Invesco platform-traded fund (PTF) products have expanded substantially and are now edging towards $150 million. The platform currently hosts 32 funds offered by 10 investment dealers, and more are signing up.

All Canadian investment dealers can get access to NEO Connect at no cost; an initial test trade can be arranged and performed within 24 hours. In Q4 2016, GMP Securities and Qtrade Investor each completed live trades on the platform. The first to transact OM-based funds there was Aligned Capital Partners.

“[W]e need to continue to look for ways to minimize the conflict of interest that exists between advisors and fund manufacturers,” said Aligned Capital Partners President and Managing Director Chris Enright. “The platform enables fund manufacturers to offer the best-priced product for all investors regardless of their size and to provide access to new and innovative investments for portfolio managers and advisors to use in their portfolios.”

With bulk trading capability and ETF-like processing efficiency, NEO Connect offers easier transactions for advisors and portfolio managers. Users can simply enter the unique ticker symbol and number of units of their desired funds using their existing securities trading system.

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