Assistance With Starting A Mutual Fund
You can enlist Foreside Management Services, LLC ("Foreside") to provide consulting assistance on starting your mutual fund. Our experienced staff can assist you through an initial review of your requirements and plans, and assist you in identifying suitable service providers. Perhaps you already have some of your requirements and just need assistance with the planning and execution, or the selection of one or two last service providers before you can plan your product launch.
Here are a few of the questions that we believe you will need to carefully review before completing a detailed start-up plan. Although many of these questions are outside of the scope of Foreside's services, for exampel we do not provide any legal advice, we can assist you in selecting professional firms as appropriate, and of course, Foreside can assist you in managing the entire project. If you are not already a registered investment advisor, please contact your legal counsel for guidance first.
Fund Strategy:
- Does the fund have some unique characteristic (style? sector?) that will differentiate it from the crowd?
- How will the fund be sold and who will be the target audience?
- How will the investments be managed; do I need sub-advisors?
- Will I be able to list the prior performance of similar non-fund portfolios in the prospectus?
- How do I amortize fund start-up costs? What expenses are eligible?
- What will the target expense ratio be and at what asset level will break-even occur?
Fund Setup:
- What form of legal structure makes sense for the fund?
- Who is my Fund Counsel that will assist with legal setup, preparation and filing of my fund's registration statement/prospectus?
- Do I need to create a stand-alone fund, or can I take advantage of an existing 'series trust' to keep costs down?
- How will I obtain the necessary insurance and what coverage do I need?
- What type of share classes does my fund need to have?
- Do I need to have a 12b-1 plan? How about sub-TA and platform related expenses?
- How do I ensure the fund qualifies as a 'Regulated Investment Company'?
- How do I select the best fiscal year-end for my fund?
- What are the tax implications that I need to think about?
- How will I set up all of the required policies and procedures for the fund?
Fund Servicing:
- Who will be the distributor (statutory underwriter) of the fund; do they manage 'sales material' compliance?
- What's the best way to arrange broker-dealer agreements for the fund?
- Who will be the Trustees on the fund's board?
- Will I need to hire a specialist or outsource the role of Fund Chief Compliance Officer?
- Can I spare the time, and am I willing to act as President/Treasurer and sign the relevant SOX certifications?
- Who will be the AML officer for the fund?
- Do I have service providers for Fund Administration, Accounting, Custody & Transfer Agency; what are the key service elements?
- How do I arrange to select and appoint a public auditor?
- Do I need to arrange Registered Reps that will wholesale the fund when its available?
RICHARD J. BERTHY
President and Partner, Foreside Financial Group, LLC
News
Jul 1 2008
Foreside is pleased to extend its existing service relationship with RMR Advisors, Inc. more
Jun 16 2008
Foreside welcomes the Allstate Financial Investment Trust as a new client of our firm. more
May 27 2008
Rich Berthy will assume the role of President, Foreside Financial Group, LLC from May 30th, 2008. more
May 07 2008
Foreside leases new office space in Columbus, OH to meet expansion plans. more
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