Following Precidian ETF’s approval by the SEC, fund managers may be interested in converting traditional open-end funds into an ETF. Asset management partner Brian McCabe provided insights on this in a number of articles.
- Ignites - Remaking Active Funds Into ETFs: Possible? Sure. Worth It? Unclear. (June 4, 2019)
- Reuters - Non-transparent ETF wins final SEC nod; some see rapid shift for compliance in funds, trading (May 21, 2019)
- Pensions & Investments - SEC gives green light to active, non-transparent ETF (May 27, 2019)
- Fund Action - What’s next for Precidian and non-transparent ETFs? (June 25, 2019)
- BoardIQ – Opaque ETF Offers Lifeline in Sinking Active Market (May 21, 2019)
An overview of the key considerations of doing this was outlined in a client alert co-authored by Mr. McCabe. As well as being referenced in the above articles, the alert was mentioned in a piece published by WealthManagement.com titled “ETFs Get Active: The Precidian Model Makes Active ETFs the Next Big Thing.”
Mr. McCabe also co-authored a piece published by Fund Board Views on May 23 titled “Board considerations in converting open-end funds into ETFs” and the alert was republished in the July issue of The Investment Lawyer.
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