ETF class of shares
ETF sub-transfer agent for your mutual fund family
Nottingham Shareholder Services has developed software and processing to handle the many steps involved in converting mutual fund shares to ETF class of shares within that mutual fund. NSS is one of the few, if not the only, non-custody bank transfer agents that can process 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 is a rounding difference. Our software accounts for that difference.
Communication is also an issue, 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. ETF Lighthouse can bridge that communication gap.
After processing the first multi-class mutual fund conversion to an ETF in 2021, the 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. This software package can handle the process of converting mutual fund shares to ETF class of shares within the mutual fund from start to finish.
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.
