Method for Combining the Management and Administration of Mutual Fund and Exchange-Traded Fund Assets Using a Master-Feeder Arrangement

摘要

A Mutual fund and ETF master-feeder arrangement includes a Mutual Fund module for a feeder mutual fund that issues and redeems mutual fund shares in transactions with investors primarily for cash, an ETF module for a feeder ETF that issues and redeems ETF shares in transactions with Authorized Participants through in kind transfers, and a Master Portfolio module for a master portfolio that issues and redeems interests through in-kind transactions with the Mutual Fund and the ETF. The Mutual Fund applies cash invested by mutual fund investors to purchase securities in accordance with an asset configuration communicated by the master portfolio; and the ETF conforms the composition of assets received in in-kind transactions to the asset configuration. The Mutual Fund and the ETF increase interests in the master portfolio by contributing assets, wherein transactions in securities to accommodate feeder fund inflows occur outside of the master portfolio.