Who is Milliman?

Milliman is a global consulting firm known for its expertise in actuarial science, risk management, and financial engineering. Milliman Financial Risk Management LLC (Milliman FRM) – a subsidiary of Milliman, Inc. – is the specific unit partnering with ARK on the defined outcome ETFs. Milliman FRM specializes in designing and managing strategies that control risk and define outcomes (they’ve been a leader in risk management for retirement and structured solutions since the late 1990s). In context of these ETFs, Milliman is serving as the sub-adviser: they handle the day-to-day portfolio management for the funds, particularly the complex task of executing and managing the FLEX options strategy.

In simpler terms, Milliman is the behind-the-scenes options expert. The firm has a long history of working on defined outcome products – for example, they have developed strategies for indexed annuities, structured products, and other buffered outcome offerings. They bring quantitative know-how and trading infrastructure (with a team based in Chicago, London, etc.) to implement ARK’s “buffered ARKK” concept. Milliman’s credentials include being an SEC-registered investment adviser focused on risk management since 2011 and employing hundreds of professionals in this arena.

So, Milliman is the experienced partner ARK enlisted to ensure the DIET funds run smoothly. While ARK provides the overarching investment theme (tying to ARKK) and marketing, Milliman provides the technical options-management and outcome engineering.