The boom in liquid alternative fund launches has triggered a flurry of activity within mutual fund series trusts, as specialists seek to lessen the regulatory and operational burdens of making the jump into retail distribution.
In some cases, alt funds can make up more than a third of all funds in a series. For example, about 50 of the roughly 140 funds in Gemini Fund Services’ Northern Lights trusts are defined by the company as alternative.
Series trusts allow a group of usually smaller or start-up managers to share a single board of directors, legal counsel and fund compliance staff. They also provide outsourced fund accounting, administration, transfer agent and other operational service.
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