Knowledge Center

Expedited Fund Launch

1/20/2010
Mutual Fund Solutions
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Business Challenge

An investment adviser came to us with an urgent need to establish a new mutual fund within a shared trust model and secure selling agreements with various financial intermediaries and mutual fund platforms. Their goal was to launch a mutual fund as quickly as possible to capture significant, temporarily available assets. However, they were unfamiliar with the process and the individual parties necessary to register, commence a mutual fund, and initiate selling agreements.

Our Solution

Typically, it takes at least 120 days to launch a mutual fund primarily due to the SEC’s registration process, leading distributors’ contract review, and Board of Trustee contract approval process.

Our client’s unique situation required faster results. We aligned our processes with our client’s timeline to coordinate an expedited filing and effective date. From preparing the appropriate SEC filings and Board approval, to addressing outside counsel’s questions, our legal team worked nights and weekends to ensure the SEC and our client received the contracts and regulatory documents with enough time to review and comment. By understanding the specific concerns of the assigned SEC staff, we were able to adjust investment strategy and risk language to address any comments and reduce SEC staff turnaround times.

Our strong rapport with more than 1,000 of the top third-party financial intermediaries also provided our client with intelligence regarding every major mutual fund platform and wire house selling agreement process, pricing, and timing. We immediately communicated the urgency of our client’s situation to their targeted third party mutual fund platforms to expedite the delivery of necessary due diligence questionnaires, fees, and adviser information. This allowed us to execute completed contracts for mutual fund platforms such as Schwab and Fidelity prior to launch so that our client could immediately receive a smooth flow of new assets into their Fund.

The Result

Although this expedited launch is not possible in many situations, we combined our strong work ethic, expertise, and industry relationships with SEC staff and leading mutual fund distribution platforms to meet our client’s requirements and launch their Fund in 46 days— more than 60% faster than standard registration process timelines.

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