F/m Investments Files Amended Application for ETF Share Class Relief

WASHINGTON--(BUSINESS WIRE)--F/m Investments ("F/m"), a $17 billion investment firm and innovative provider of exchange-traded funds (ETFs), today announced it has amended and updated its application with the U.S. Securities and Exchange Commission (the “SEC”) for exemptive relief. The updated filing seeks an order that would permit all existing and future funds advised by F/m through The RBB Fund – including the US Benchmark Series, a suite of 10 ETFs designed to simplify access to the US Treasury market – to offer both exchange-traded and mutual fund share classes.

“Investors deserve choice and easy access to investments, not complication and confusion,” said Alexander Morris, CEO of F/m Investments. “This structure aims to deliver lower costs and may lead to better quality products.”

This updated filing builds on F/m’s 2023 application and reflects the culmination of over a year of collaborative engagement with the SEC staff, industry partners, and other asset managers. It incorporates a comprehensive board oversight framework and expands the scope of relief, permitting all current and future funds managed by F/m within the RBB trust structure to offer dual share classes – currently comprising 14 ETFs and five mutual funds.

For updates and amendments to its novel exemptive application, F/m continued to partner with Aisha Hunt, founder and principal of Kelley Hunt, PLLC, a leading ETF regulatory attorney and trusted adviser to institutional asset managers, investment funds, and their boards.

“Kelley Hunt is proud to support F/m’s leadership in helping shape a practical governance model for dual share class ETFs – one poised to shape how innovation scales across institutional, retirement, and intermediary platforms,” said Hunt.

The amended filing shows that F/m would deliver detailed reports to the funds’ board regularly. These reports cover the design and functioning of the dual-share class structure, identify sources of savings across share classes, address any capacity constraints within the funds, and provide updates on realized capital gains and tax efficiency.

In addition to regular reporting, F/m would also conduct an annual report that includes an analysis of the dual share class product. This report evaluates any changes to the structure made over the prior year, outlines capital gains distributions by share class, reports on fund-level brokerage costs, and assesses any potential negative impacts associated with the dual-share class structure.

“F/m has built its reputation in the ETF space, having repeatedly come to market with innovative ideas, and this historic filing shows that F/m strives to be one of the industry's most forward-thinking participants,” said Steve Plump, CEO and President of RBB Fund, F/m's multi-series trust. “This filing demonstrates industry leadership from F/m that can be emulated by other RBB clients and the broader ETF industry moving forward.”

“We deeply appreciate the opportunity to work with the SEC,” Morris added. “This process has been mutually beneficial and delivers a great outcome for investors.”

About F/m Investments

F/m Investments is a $17 billion investment firm providing diversified investment strategies to advisors and institutional investors across asset classes, markets, and styles. For more information, please visit www.fminvest.com.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1-800-617-0004 or visit our website at www.fminvest.com or http://www.ustreasuryetf.com. Read the prospectus or summary prospectus carefully before investing.

Investments involve risk. Principal loss is possible. Distributed by Quasar Distributors, LLC.

This report was prepared by F/m Investments, a federally registered investment adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. Form ADV Part 2A can be obtained by visiting https://adviserinfo.sec.gov and search for our firm name. ADV Form 2B is available upon request. Neither the information contained herein, nor any opinion expressed is to be construed as solicitation to buy or sell a security or personalized investment, tax, or legal advice.