Mutual Fund and ETF Operations

Price: $995   Register now

Recommended that you register at least two weeks in advance.

Course Features

  • Course date:04/27/2020
  • Course Duration: 1 Day
  • Level: Beginner-intermediate
  • Prerequisites: None
  • Method: Live & Virtual
  • Venue: MicroTek
  • Time: 9:00 am – 5:00 pm
  • Dress Code: Business Casual
  • Category:
  • Certificate: Yes
  • CPE Credits: 7
  • Course Code: 208

Mutual Fund and ETF Operations

This one-day program provides an introduction to the structure of mutual funds and ETFs, with an emphasis on the operational functions that support these businesses. The different types and classes of mutual funds, ETFs, and other fund products available to investors will be described and compared. Participants will gain an understanding of the variety of distribution channels for fund products. The program content covers revenue-sharing agreements, sales charges, 12b-1 fees and how they are assessed.  Differentiation between those expenses allocated to the fund investors and the fund manager will be made. The players and their roles, including the Fund Manager, the Fund Distributors, the Transfer Agent, the Fund Administrator, and the Custodian, will be thoroughly examined, as well as the industry’s regulatory framework. The order process for sales and redemptions through the final account will be analyzed.

Course Objectives

By the end of the course, the participants will be able to:

  • Explain differences among fund products, such as open and closed end funds, ETFs, and UITs
  • Identify the role and responsibility of the fund’s service providers, including custodians, transfer agents and administrators, fund accountants and providers of shareholder services, as well as how are they paid
  • Analyze sales charges, fund expenses, and how fund distributors are compensated, e.g. revenue sharing agreements, and potential conflicts of interest
  • Understand the regulatory framework for the fund industry

Section One:  How Mutual Funds and ETFs Are Organized

  • Explain how funds are organized. Compare and contrast features of open and closed end funds, ETFs and UITs
  • Be aware of issues related to money market funds and the impact of rule 2a-7
  • Provide an overview of the Mutual Fund regulatory structure
  • Discuss the typical mutual fund business structure, focusing on its supporting operational lifecycle
  • Identify and discuss the roles of mutual fund service providers, which will be addressed in more detail in the following session, including:
    • Fund Manager
    • Transfer Agent
    • Distributors
    • Fund Administrator
    • Custodian
    • Auditors and Regulators

Section Two: How Investors Purchase and Redeem Shares

  • Provide a high-level overview of how the NAV is calculated for a mutual fund
  • Discuss how mutual funds and ETFs are sold and distributed, including the calculation of sales charges and fees, and breakpoints
    • Broker/Dealers
    • Registered Investment Advisers (RIAs)
    • Banks
    • Insurance Companies
  • Explain how distributors are compensated
  • Understand omnibus arrangements
  • Identify where fee information is contained in the prospectus
  • Differentiate between expenses allocated to the fund investors and the fund manager
  • Explain the creation and redeem process for ETFs

Section Three: Mutual Fund Services

  • Explain the various services provided by to the mutual fund and brokerage communities through DTCC, and who pays the cost of these services, including:
    • Fund/Serv
    • Agreements
    • ACATS transfers
    • Networking
    • Omnibus Processing

Section Four: Transfer Agents

  • Identify major shareholder accounting and service functions and who pays the cost of these services
  • Discuss fund transfer agent operations
  • Explain the flow of shareholder service activities
  • Examine transfer agent disbursements and cash flows from the fund to investors, including shareholder redemptions
  • Evaluate the requirements for shareholder reporting and statements

Section Five: Fund Administrators

  • Describe the role of the Fund Administrators and who pays the cost of these services
  • Discuss the communication pathway linking the Fund operation groups, the Custodians, and the Fund Administrator
  • Appreciate Mutual Fund best practices in deciding the selection criteria for a Fund Administrator, as well as fee structures
  • List gaps and exposures in the fund administration process that create operations risk

Section Six: Fund Auditors and Accounting Functions

  • Understand the role of the Fund Auditor
  • Explain how the functions of both investment and portfolio accounting are supported
  • Discuss the information and its sources required for the accounting functions

Recognize types of reporting


  • Charlotte is a broadly accomplished financial services executive with over 25 years of comprehensive experience in delivering innovative and cost-effective operations and technology training solutions for equities, derivatives and fixed income product lines.  Her successful career as a senior-level manager in Operations at Credit Suisse, Paine Webber and Bankers Trust furnishes the industry expertise that …
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