In a February 13, 2012 post, we introduced the topic of Fund Restructuring and noted a number of ways in which a mutual fund could restructure itself to better align with today’s marketplace. In this post, we will touch on some of the operational issues relating to fund mergers. Tax considerations will be discussed in a future post, but it should be noted that one of the most significant challenges from an operational standpoint is ensuring coordination between operational and tax issues.

There has been much movement in the mutual fund industry recently in terms of fund restructuring.

In order to avail itself of the favorable tax treatment afforded to a “regulated investment company” or “RIC," a fund must meet the following requirements: