Combines Nasdaq veteran's leadership and Veriti’s legacy direct indexing platform with First Trust’s 30+ year history of delivering tax-efficient solutions to financial professionals and their clients

Veriti Management LLC (“Veriti”), a provider of tax-advantaged, direct indexing solutions, today announced its rebrand to First Trust Direct Indexing L.P., as well as the appointment of Robert Hughes as Chief Executive Officer (CEO), taking the reins from Veriti Co-Founder and Managing Partner James Dilworth. Hughes will focus on integrating the direct indexing capabilities and technology established by Veriti with the extensive resources and distribution network provided by its recent affiliate, First Trust Portfolios L.P. (“First Trust”).

The Veriti/First Trust affiliation comes at a time when there is heightened demand for more tax-efficient, personalized investment solutions. With the prevalence of market volatility, advisors and their clients are looking for solutions that may help to maximize returns while minimizing taxes. First Trust Direct Indexing seeks to turn volatility into an asset through tax loss harvesting strategies, which have the potential to increase an investor’s after-tax returns.

Direct indexing delivers bespoke portfolios that prioritize the potential to generate tax alpha and focus on values-based investing as well as factor and thematic positioning. Financial advisors, institutions, and wealth management firms can build portfolios of individual securities based upon customized exposures to a benchmark that their clients own via a tax-advantaged separately managed account (“SMA”). Because investors own individual securities, losses can be harvested at the individual security level, both intra-day and throughout the year.

“First Trust Direct Indexing is well positioned to help advisors solve the dual demands of individualized account customization and a smart approach to seeking tax alpha that can tilt client portfolios to their satisfaction,” said Hughes. “I’m excited to be joining at a pivotal time for our business and the industry. The elite team at First Trust Direct Indexing has developed a simple and powerful delivery tool for advisors and institutions, to help them meet clients where they’re at in terms of values, needs and goals.”

“First Trust Direct Indexing was built by and for advisors, and we believe it will be a natural leader in direct indexing solutions for the broader industry,” added Dilworth. “With expanded distribution channels, educational tools, and support, paired with Rob’s leadership, I have no doubt that the team will be able to quickly capitalize on explosive growth in the direct indexing market.”

Hughes’ background includes extensive experience at Alerian and S-Network Global Indexes (now VettaFi), where his roles as Co-Head of Distribution and Chief Commercial Officer saw him working closely with asset managers to launch new indexes and investment strategies. Previously, he spent nearly 15 years as Global Head of Index and Advisor Solutions for Nasdaq, where he led the global business development of Nasdaq Indexes and the Dorsey Wright and Associates’ RIA business. During his tenure, he supported launch of more than 300 exchange-traded products in 21 countries, including the first U.S.-based index exchange-traded funds (ETFs) in India and China. Hughes is a graduate of the University of Notre Dame.

For insights and analysis from First Trust Direct Indexing on topics and trends impacting institutional and retail investors, please visit FTDirectIndexing.com.

About First Trust Direct Indexing L.P.

Founded in 2018, First Trust Direct Indexing (formerly Veriti Management LLC) is an investment adviser registered with the U.S. Securities and Exchange Commission. First Trust Direct Indexing’s technology offers institutional investors and wealth advisors the ability to personalize investment strategies to align with the values of contemporary investors as well as the potential to capture substantial tax benefits. First Trust Direct Indexing is focused on one key service: direct indexing to help institutions and wealth management firms seek to achieve long terms goals for their investors. First Trust Direct Indexing L.P. is an affiliate of First Trust. For more, visit us at FTDirectIndexing.com.

About First Trust

First Trust Advisors L.P. (“FTA”), a federally registered investment advisor, and its affiliate, First Trust Portfolios L.P. (“FTP”), a FINRA registered broker-dealer (collectively “First Trust”), are privately held companies that provide a variety of investment services. FTA has collective assets under management or supervision of approximately $190.4 billion as of December 30, 2022, through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separately managed accounts. FTA is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. First Trust is based in Wheaton, Illinois. For more information, visit www.ftportfolios.com.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.

First Trust Direct Indexing L.P. (“FT Direct Indexing”) is an investment advisor registered with the U.S. Securities and Exchange Commission. FT Direct Indexing is affiliated with First Trust Portfolios L.P. and is responsible for the day-to-day management of direct index SMAs. First Trust Portfolios L.P. is the marketing agent for the direct index SMAs.

FT Direct Indexing has entered into a contractual agreement with an affiliate, First Trust Portfolios L.P. and First Trust Advisors L.P. (jointly referred to as” First Trust”), to solicit investment advisory services provided by FT Direct Indexing. Since FT Direct Indexing management fees are based upon a percentage of assets under management, the more assets under management, the higher fee income to FT Direct Indexing. In addition, since First Trust’s affiliate, First Trust Capital Partners LLC, owns FT Direct Indexing, First Trust will indirectly benefit from an increase in fees received by FT Direct Indexing. Due to such compensation, First Trust has an incentive to recommend advisory services of FT Direct Indexing, resulting in a material conflict of interest which should be considered when making a decision to engage FT Direct Indexing. First Trust will not be involved in the provision of services by FT Direct Indexing.

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