Asset Management Attorneys Discuss Key Considerations on Mutual Fund to ETF Conversions Widely in the Media

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 together with asset management associate Teo Larsson-Sax. 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 and Mr. Larsson-Sax 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.