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Manager-Led ETFTs are portfolios whose investment decisions are made by an appointed external manager using Alloco’s infrastructure. The manager has an actual management role, rather than serving only as a source of public information. Managers use ETFT Captain to define and operate their portfolios within an approved mandate. Strategies can be discretionary or systematic.

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Division of responsibilities

RoleResponsibility
IssuerProduct issuance, unit obligations, and the legal product framework
Investment managerAsset selection and portfolio decisions within the mandate
Execution servicesImplementing authorized orders through supported venues
Valuation and operationsReconciliation, NAV accounting, and creation and redemption processing
Appointment as an investment manager does not automatically make the manager the legal issuer or give it unrestricted withdrawal, minting, or valuation authority.

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The investment mandate

The product specifies permitted assets, venues, leverage, concentration, liquidity, and rebalancing constraints. A manager cannot expand that mandate simply by changing portfolio weights. The product also identifies the manager, fees, conflicts of interest, related-party transaction rules, and the procedure for replacing or removing the manager. Changes to the mandate and routine portfolio adjustments are disclosed separately.

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Performance and continuity

An ETFT’s live performance begins with its own portfolio and fee structure. A manager’s prior account or fund history is not the ETFT’s live track record. The product documents define continuity arrangements for manager departure, incapacity, or breach of mandate, including restrictions on trading authority and orderly wind-down where required.