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Mutual Fund Shared Trusts

Problem

Due to the ever increasing costs of doing business in the mutual fund industry and the increased level of regulatory compliance, it is becoming increasingly difficult for the small- to mid-sized fund to compete and remain profitable.

Solution

Joining Gemini's Shared Trust can help solve many of these issues by providing the solution to four key ingredients that contribute to a fund's success. They are: operational efficiency, economies of scale, regulatory compliance and board oversight, and fund sales. By creating an association of independent funds, a shared trust can provide these advantages on a scale that would not otherwise be achievable.

What We Provide

• Operational efficiency through our management of corporate, board and regulatory governance
• Economies of scale through reduced auditor, fund counsel, trustee, insurance and registration expenses
• Compliance and proper board oversight
• Enhanced fund sales through our sister companies that arrange selling agreements with broker/dealers and other institutions, provide eligibility to be listed in our advisor services program, and get you listed on distribution platforms

Benefit To You

You are free to manage your portfolio and as a result, focus on fund performance and shareholder returns. Plus, you gain an instant Board of Directors and Fund Council, along with some potential cost savings.

In addition, we save you a lot of legwork with the arrangements we can provide you for enhancing fund sales.

In light of the regulatory initiatives that have recently defined the mutual fund industry, many small- and medium- sized mutual fund families have found themselves bogged down complying with the new regulations and managing their Board instead of concentrating their efforts on doing what they do best: managing money and raising assets.

With Gemini managing all aspects of a fund's corporate, board, and regulatory governance, the advisor will finally be free to do what it does best. As a result, fund performance and shareholder returns may improve.

Most small- to medium-sized fund families have a very limited number of portfolios. At that level, all services provided by auditors, fund counsel, trustees and custodian banks, blue sky filings, etc. and their related fees, are all negotiated on a one-off basis.

By combining separate funds in a shared trust, we can negotiate economies of scale that could not be achieved on an individual basis. These economies of scale may reduce fund operating expenses, thereby improving the total return to your shareholder.

In today's regulatory environment, a fund board has been assigned much of the responsibility to ensure that a fund is in compliance with SEC regulations. Many directors/trustees of small- to mid-sized funds are very uncomfortable with these new responsibilities and in some cases, members have resigned their board positions. Combine this with the proposed best practice that each board contains a financial expert and many boards do not have members that are qualified. As a result, many funds have to spend an inordinate amount of time on board issues, finding qualified members, and/or increasing the level of board compensation to attract new qualified members or retain existing members. This can be a major distraction for an advisor.

By combining several independent funds into a shared trust, Gemini can attract extremely qualified board members that have the expertise to provide proper board oversight and pay them a fee commensurate with their qualifications. This will relieve the advisor of a major responsibility and by allocating board fees over many funds, reduce fund operating costs.