Converting Separately Managed Accounts into Exchange Traded Funds: Tax Implications

Posted by Cory Stewart on Jul 21, 2021 2:38:12 PM

As investors continue to search for new ways to drive alpha, lower costs and increase accessibility, there has been increased discussion across the investment management industry about converting separately managed accounts (“SMA”s) into exchange traded funds (“ETF”s).

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Hedge Fund Start-Ups: GAAP Departure Out of the Gate

Posted by John Braun on Jun 25, 2021 1:25:00 PM

Hedge funds can incur start-up costs called organization and offering costs. Oftentimes, the treatment of these costs for Generally Accepted Accounting Principles in the United States (GAAP) purposes can cause headaches during the audit process. The key to avoiding this particular headache is understanding the issue and then coordinating with your auditor on a plan of action during the organization of the fund.

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Starting a Private Fund? We're Answering Your Questions About Audits.

Posted by John Braun on Jun 9, 2021 11:38:53 AM

We often have conversations with portfolio managers who have experience managing a portfolio in a large shop and decide to break away and start their own investment advisory business. Many of these managers have an interest in launching their own pooled investment vehicle, often a product that they have been working “on the side.”

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Thinking About Investing in the SPAC Attack? Important Valuation Considerations.

Posted by Richard Wagner on May 28, 2021 5:12:00 PM

When investing in a SPAC, at the IPO or after, you are not investing in an actual company with fundamentals. 

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Mutual Fund and ETF Audits: Key Differences

Posted by Jim Kaiser on Apr 15, 2021 10:26:00 AM

Given that mutual funds and ETFs are both types of regulated investment companies with audits subject to the requirements of the Public Company Accounting Oversight Board, there are certainly many similarities in the audit process for both. However, there are some key differences to note, particularly in the areas of:

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Eight Investments That Could Cause a Tax Headache For Your Registered Fund

Posted by Richard Wagner on Mar 25, 2021 11:26:33 AM

As the saying goes, "You don't know what you don't know."  Below we have detailed eight investments that could cause a tax headache if not approached carefully.

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On-Demand Webcast- The SEC's New Derivatives Rule: Understand the Significance For Your Funds

Posted by admin on Feb 18, 2021 11:48:26 AM

In BBD's latest Webcast, John Braun and Cory Stewart teamed up with Karen Aspinall from Practus and Terry Gallagher from UMB for a dynamic discussion on the SEC's new Derivatives Rule.

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Upcoming Webcast- The SEC's New Derivatives Rule: Understand the Significance For Your Funds

Posted by admin on Feb 9, 2021 2:14:55 PM

Join our webcast on February 17 at 2:00 p.m. EST for an important update regarding this new Rule and how to navigate potential impacts to your funds.

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Rule 2a-5: Let's Work Together

Posted by John Braun on Feb 5, 2021 7:34:00 PM

On December 3, 2020, the SEC voted to approve Rule 2a-5 (the “Rule”) to address valuation practices and the role of the Board of Directors for registered investment companies and business development companies relative to the fair value of investments. The new Rule is meant to modernize existing SEC regulations that have not been comprehensively addressed by the SEC for 50 years. BBD has summarized the Rule in a previous post.

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Your Funds Don't Employ Derivatives, or Use Them Sparingly? 5 Questions You Still Need To Ask About the SEC's New Derivatives Rule

Posted by Richard Wagner on Jan 12, 2021 10:58:52 AM

On October 28, 2020, the SEC adopted a new rule designed to address the investor protection purposes and concerns underlying Section 18 of the Investment Company Act of 1940. More specifically, Rule 18f-4 provides an updated and more comprehensive approach to the regulation of funds’ use of derivatives. This Rule is effective for all funds February 19, 2021, with a compliance date of August 19, 2022. While the final Rule offers a more than 450-page comprehensive framework for funds utilizing derivatives, management and Boards of funds not employing derivatives, or utilizing them on a limited basis, still should be aware of the impact of certain key points of the Rule.

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