While creating a new mutual fund can be a costly, labor-intensive endeavor, RBB's consistent approach can help provide a smooth, cost-effective start-up.
You also have the option of establishing and operating your fund with a turnkey solution. This solution lies within the RBB fund family, where many fixed expenses, including insurance, Director, and audit fees-as well as certain legal expenses not attributable to specific RBB funds are defrayed being borne by each Fund on a pro-rata or other appropriate basis, determined by the Board of Directors. RBB has been approved to provide the accounting, administration, transfer agency and custodial services; Distributor serves as the principal underwriter for the fund. This means you have a complete solution for start-up and ongoing operational support.
Finally, there is no need to secure the $100,000 in seed money or file a new registration statement as required by the Securities and Exchange Commission (SEC) for a new stand-alone fund company. Instead, RBB, under the supervision of fund counsel, will work with you to draft a proposed amendment to RBB's current registration statement describing the fund(s) you plan to offer. RBB's regulatory administration group, in conjunction with fund counsel, then coordinates the filing of the registration statement.
TURNKEY SOLUTION TIMELINE
The timeline to launch a fund within the RBB fund complex is currently established and operational, and its organizational documents have been filed. Your fund's prospectus and statement of additional information will be developed based on a standard template. Each advisors portfolio's prospectus and statement of additional information will be customized to include your fund's particular investment strategies, advisor information, and contact details, among other specific fund information will be designed and printed with your firms branding and logo.
Within the RBB fund, Inc. Turnkey structure, the appropriate organizational documents must be created and then filed for incorporation. The fund's prospectus and statement of additional information must be drafted from scratch and filed with the SEC. These factors alone can delay the launch of the fund.
These are only a few of the differences between the two solutions that can impact the time line for launching a new fund. See the figure below for a projected new fund launch timeline within the turnkey solution.