Sub-transfer agent for your mutual fund family
Nottingham Shareholder Services has developed software and processing to handle the multi-step process of converting mutual fund shares to ETF class of shares within that mutual fund. NSS is one of the few, if not only, non-custody bank transfer agents that processes both mutual fund shares and ETF shares.
A structural difference exists between mutual funds and ETFs, as mutual funds are held in fractional shares and ETFs are typically held in whole shares or round lots. When converting existing mutual fund shares into the ETF class of shares, there will be a rounding difference to account for that difference.
A communications issue is also an issue to address, as mutual fund shares are purchased and redeemed through FundServ or directly with the mutual fund transfer agent, where ETF shares trade on an exchange and are processed through the DTC infrastructure for processing exchange transactions.
After processing the first multi class mutual fund conversion to an ETF in 2021, Nottingham technology team has worked with the transfer agent team at Nottingham Shareholder Services to develop ETF Lighthouse, a patent pending software package operated by the experienced NSS team.
ETF Lighthouse is intended to serve as a tool for existing mutual fund transfer agents to add ETF Class of Shares capability for their clients quickly, efficiently and economically with a tested solution.
For more information, we will be happy to discuss ETF Lighthouse with you and your team.
