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Organizational Impact of New Product Classes

“What will they ask us to support next?”

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Agenda• Introductions• Product Structures & Tax Considerations

– Exchange Traded Products (ETPs)– Registered Alternatives

• Product Design• Planning• Launch

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Product Structures: ETPs

• ETFs– 1940 Act Registered Investment Companies (RIC)– 1933 Act Trusts or Partnerships

• Exchange Traded Notes (ETNs)• Exchange Traded Managed Funds (ETMFs)

– NextShares

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Product Structures: Registered Alternatives

• Single strategy ‘40 Act mutual fund• Multi-manager ‘40 Act mutual fund• Non-liquid registered structures (e.g. interval

fund)

Note: See handout from Cohn & Barr illustrating product structures.

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Product Design• What drives the design decision?

– Which strategies or instruments are included?– What’s the most appropriate product structure?

• Which departments do you bring in and when?

• Are there any common gaps that you confront or hurdles to overcome?

• What are some unique compliance and regulatory concerns related to the products?

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Planning

• How critical is “time to market” in driving the process?

• How do you think about insourcing vs. outsourcing the operating platform?

• Do these products have unique technology or operating requirements?

• What are key milestones between idea conception and launch?

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Launch

• What are critical steps pre/post launch to ensure success?

• What’s the “long pole in the tent” that frequently delays a launch?

• How do you prepare your sales force to take the new product to market?

• Will the organization’s culture embrace or resist the new product’s addition?

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