Product Conversions: 
An Alternative to Rationalization Amid Competitive Landscape

Increasing fee pressures, rising distribution costs, the shift to passive investing and regulatory complexity are just a few trends causing asset managers to critically evaluate product structures. 

The ratio of funds rationalized to launched has been increasing over the past several years; currently standing at 192%, which is the second highest level over the past two decades. With that in mind, this report seeks to provide an alternative to a fund rationalization—product conversions.

Stand-Alone Trust to 
Multiple Series Trust

The series trust model is a viable option for established institutional boutiques seeking 1940 Act placement of a core strategy.

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Closed-End Fund to 
Open-End Fund

Closed-End Fund to 
Unlisted Closed-End Fund

Open-End Fund to 
Non-Transparent ETF

Converting a fund from a closed-end structure to an open-end fund has the potential to unlock a fund’s value.

A closed-end fund sensing overarching market sentiment for greater access to illiquid securities may consider converting to an unlisted CEF.

Creation of the actively managed non-transparent ETF structure poses an opportunity for asset managers to commit to a strategy that marries active management and ETF delivery.

Download the full report by FUSE Research Network and UMB Fund Services for a deeper understanding of the strategic considerations surrounding each the following types of conversions.

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Download the full report by FUSE Research Network and UMB Fund Services.