Nottingham Leads Revolutionary Mutual Fund to ETF Conversion
The Nottingham Company announced the successful conversion of the Starboard Investment Trust's Adaptive Growth Opportunities Fund into an ETF, marking a milestone as the first multi-class mutual fund to make this transition. Trading under the ticker AGOX on NYSE Arca since May 10, 2021, this conversion reflects the growing preference for ETFs among investors. Nottingham aims to cater to rising demand by enhancing its ETF services and expects further conversions soon, providing tax efficiency and broader distribution channels.
- First multi-class mutual fund to ETF conversion.
- AGOX began trading on NYSE Arca, expanding investor access.
- Increased demand for ETF structure from wealth managers.
- Expected future conversions to ETFs, enhancing operational efficiency.
- None.
ROCKY MOUNT, N.C., May 13, 2021 /PRNewswire/ -- The Nottingham Company, a leading fund administrator, issuer and consultant to the mutual fund and ETF industry, announced the conversion of Starboard Investment Trust's Adaptive Growth Opportunities Fund into an ETF, marking the first time a multi-class mutual fund has converted into an ETF. The Adaptive Growth Opportunities ETF began trading on NYSE's Arca under the ticker AGOX on May 10th.
"We are seeing ETFs serve as an ideal solution for a growing number of investors and advisors," said Kip Meadows, founder and CEO of Nottingham. "Delivering the first multi-class mutual fund to ETF conversion has opened the door for conversations with a large number of fund managers who are seeking broader distribution channels and a more efficient investment vehicle for today's investors."
ETFs have become the preferred investment vehicle for many advisors and investors. With both transparent and non-transparent options available, fund managers, now more than ever, recognize the value and need to convert to an ETF structure. With benefits such as tax efficiency, broader distribution avenues, intraday trading, and lower operational expenses, this conversion foreshadows an anticipated wave of mutual fund to ETF conversions coming across the industry. Over the past several years, Nottingham has made significant investments into their business to position themselves as a leader in the ETF industry.
Nottingham has an easy-to-use order system built specifically for ETFs. The AP (Authorized Participant) portal provides a complete solution for all ETF parties to process and communicate information promptly and accurately. AP's can place orders for ETF shares, view and adjust the basket for cash in lieu of restricted securities and view the order confirmation. The company recently bolstered its ETF services with a license agreement for Blue Tractor Shielded AlphaSM and the New York Stock Exchange's Actively Managed SolutionSM (AMS). Both are semi-transparent ETF wrappers for actively managed funds.
"We are excited to be among the first mutual funds to convert to an ETF," stated Adaptive CEO Greg Rutherford. "The wealth managers we work with to position our family of funds has been asking for the ETF structure for the past few years, and it is our plan to meet their request by converting our other Adaptive portfolios to ETFs in the coming months."
Nottingham worked with custodian Clear Street to complete a seamless conversion of the newly minted AGOX fund. Additional conversions are expected to be announced, unlocking broader distribution channels and lower operational expenses for fund managers and driving tax efficiencies and intraday trading capabilities for investors.
About The Nottingham Company, Inc.
The Nottingham Company, Inc. has been serving the fund accounting, administration, organization, and management needs of clients nationwide for over three decades. Based in Eastern North Carolina, Nottingham delivers a full range of turnkey services, handling clients' behind-the-scenes financial and administrative operations so they can focus on managing their portfolios. More information is available at ncfunds.com.
RCADP0521009
Investors should consider the investment objective, management fees, risks, charges and expenses of the Fund carefully before investing or sending money. The Prospectus and Summary Prospectus contains this and other information about the Fund. For a current Prospectus and/ or Summary Prospectus, call 888-721-4588, visit us at www.adaptiveinv.com or email us at info@adaptiveinv.com. Please read the Prospectus and/or Summary Prospectus carefully before you invest. Current and future holdings are subject to change and risk.
An investment in the Adaptive Growth Opportunities ETF is subject to investment risks, including the possible loss of some or the entire principal amount invested. There can be no assurance that the Adaptive Growth Opportunities ETF will be successful in meeting its investment objective. Investment in the Adaptive Growth Opportunities ETF is also subject to the following risks: Common Stock Risk, Control of Portfolio Funds Risk, Equity Securities Risk, Fixed Income Risk, ETF Investing Risk, Fund Investing Risk, Cash and Cash Equivalents Risk, Foreign Securities and Emerging Markets Risk, Investment Advisor Risk, Management Risk, Large-Cap Securities Risk, Market Risk, Portfolio Turnover Risk, Quantitative Model Risk, Small-Cap and Mid-Cap Securities Risk, Cybersecurity Risk, COVID-19 Risk, Authorized Participant Risk, ETF Structure Risks, and Early Close/Trading Halt Risk. The Adaptive Growth Opportunities ETF may invest in foreign securities and emerging markets, and these investments have risks that differ significantly from those associated with domestic securities. More information on these risks can be found in the Adaptive Growth Opportunities ETF's prospectus.
The Adaptive Funds are distributed by Capital Investment Group, Inc., Member FINRA/SIPC, 100 E. Six Forks Road, Suite 200, Raleigh, NC 27609, (800) 773-3863. There is no affiliation between Adaptive Investments, the Investment Advisor to the Fund, and Capital Investment Group, Inc.
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SOURCE Nottingham
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