Why did ARK partner with Milliman on the ARK DIET products?

ARK partnered with Milliman because Milliman brings deep expertise in defined-outcome strategies and risk management – skill sets that complement ARK’s capabilities. Launching a “buffer” ETF with custom options overlays is a complex endeavor that requires specialized knowledge in structuring options portfolios, managing daily valuations/margin, and handling the operational intricacies of defined payoff strategies. Milliman FRM has a long track record in this exact space, having developed and managed numerous defined outcome and hedging programs for clients over the years. By teaming up with Milliman, ARK can leverage a ready-made infrastructure and knowledge base for executing the FLEX options strategy effectively.

In practical terms, Milliman as sub-adviser handles the heavy lifting of trading and rebalancing the FLEX options, ensuring that the fund maintains the intended buffer and cap throughout the outcome period. ARK, on the other hand, focuses on its core competency (the stock selection via ARKK and overall product vision).