SIFMA ETF Share Class Operations White Paper

This white paper, prepared by SIFMA and SIFMA AMG (collectively, SIFMA) explores the operational aspects of managing Exchange-Traded Fund (ETF) share class structures. It outlines potential processes for individual shareholder share class exchanges, presents a voluntary framework for industry-wide communication, and highlights key operational considerations.

While there are many facets to ETF share class administration and operations, this voluntary operational framework concentrates specifically on share class exchanges, particularly the initial transitions from mutual fund to ETF classes, recognizing that other aspects fall outside its current scope. As the industry assesses their readiness and approach to potential developments in this evolving space, this white paper serves as a valuable informational resource.

Key Topics

• • Considerations related to intermediaries and funds’ approach to share handling and timing of transactions.

• • Compilation of operational factors to consider for post-transaction processing.

• • Description of existing communication methods such as the Mutual Fund Information Exchange (MF Info Xchange) and one template for Letters of Instruction (LOIs).

• • Information about possible communication approaches between intermediaries and fund sponsors. Discussion of terminology that may facilitate operational clarity.

• • Examples of potential workflows for share class handling.