Welcome to End2End, a quarterly newsletter that will help you better understand the comprehensive impact of current issues and trends across the registered funds landscape.
In our industry today, innovative strategies in ETFs and retail alternatives continue to take center stage. This inaugural issue provides insight into the use of fair value adjustment factors for ETFs investing in foreign securities, and key tax considerations of registered private real estate funds. We also offer our perspectives from the 2023 Cohen Client Conference and the Investment Company Institute Tax & Accounting Conference.
ETF Insights
Should an ETF Investing in Foreign Securities Use Fair Value Adjustment Factors?
Author: Jim Kaiser
Events occurring after the close of foreign markets, but prior to the close of U.S. markets, can impact the valuation of securities. To minimize the risk of market timing, funds that invest in international securities can use a fair value pricing service. But is that right for an ETF?
Funds that invest in international securities could be subject to market timers looking to take advantage of potential arbitrage between the time a foreign stock exchange closes and the time the U.S. stock exchange closes.
Industry Trends
Regulation, Scrutiny and — Positivity — at the 2023 Cohen Client Conference
Authors: Brett Eichenberger, Erin McClafferty
This year’s Cohen Client Conference offered incredible knowledge and insights. From SEC rulemaking, enforcement and examinations, to generative AI, board insights, ETF innovations and tax matters, our panelists and presenters were “all in” on helping attendees navigate the industry.
"As we took in the incredible knowledge and insights from our many panelists and presenters, it was hard to ignore a recurring theme around regulation and scrutiny at just about every turn. These areas touch every part of our industry in a meaningful way."
Tax Considerations
What is a 1940 Act Registered Private Real Estate Fund?
Author: Andreana Shengelya
Asset managers have shown increasing interest in retail funds investing in direct private real estate or private credit secured by real estate. Many of these funds are registered with the SEC under the Investment Company Act of 1940. So how does this structure work from a tax standpoint?
This investment vehicle can provide numerous tax benefits, serving as a valuable option to investing in private real estate.
Industry Trends
Regulatory Change and Retail Alternatives Center Stage at ICI Conference
Authors: Lori Novak, Lisa Downing, Ryan McKenna
At the recent Investment Company Institute Tax and Accounting Conference, regulatory readiness and exploring investment alternatives were key focal points. Two particularly impactful sessions covered complex accounting and reporting considerations and tax issues for business development companies, private credit and other alternative type funds.
"Panel after panel touched on regulatory change and the impactful modifications necessary for compliance."
Two Managing Directors Join Registered Funds Group
Welcome investment industry veterans Stacey Wilson and Marc Gallagher, both hailing from global accounting firms. Marc brings nearly 30 years of tax expertise and Stacey nearly 20 years of assurance experience to clients in our Registered Funds Group.