OAKS, PA — In response to the booming active ETF market, Cullen Capital Management LLC has chosen SEI’s (NASDAQ: SEIC) Advisors’ Inner Circle Fund as its operational platform for launching its first active ETF.
The Cullen Enhanced Equity Income ETF (DIVP) is designed to offer a higher income potential compared to traditional equity-income investments. Active ETFs, which enable fund managers to actively manage portfolios in response to market changes, have seen significant growth. The assets in these ETFs surged from $350.4 billion in 2022 to $532.9 billion in 2023, marking a sharp 34% increase.
The DIVP strategy involves integrating dividends from equity holdings with premiums from covered call options on part of the portfolio. This allows for potential upside market participation in addition to income generation, making it an attractive investment option.
Jeff Cullen, Managing Director of Cullen Capital Management, highlighted the efficiency of SEI’s platform in tackling the complexities associated with ETF product strategy, distribution, and compliance. He noted that the series trust and client service model offered by SEI provides the infrastructure and expertise needed to swiftly launch their first ETF.
Mike Beattie, Managing Director of SEI’s Investment Managers business and President of the Advisors’ Inner Circle Fund, expressed satisfaction in providing Cullen Capital with the operational infrastructure necessary to launch their active ETF product.
The active ETF market saw a record-setting net flow of $131 billion in 2023, accounting for 22.1% of net flows into all ETF products that year. This growth prompts asset managers like Cullen Capital to expand their investment lineup with active ETFs.
John Alshefski, Senior Vice President and Managing Director of SEI’s Traditional Investment Managers business, emphasized the company’s readiness to seize growth opportunities by offering an operational platform that can efficiently launch and support ETF products.
The Advisors’ Inner Circle Fund Trust (AIC) was introduced by SEI over 30 years ago, pioneering the series trust concept. It offers investment organizations a cost-effective way to operate their existing funds without the need to build their own fund operating infrastructure. The AIC platform is designed for asset managers seeking a more cost-effective way to operate their existing funds, further solidifying SEI’s position in the burgeoning active ETF market.
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