You can’t celebrate seven years of blazing the trail without mentioning the team that redefined what’s possible in asset management. In March 2021, Practus became the first law firm in the U.S. to complete a mutual fund-to-ETF conversion. This regulatory and operational feat was just the start of a new structure that continues to disrupt the investment industry.
At the helm of these transactions? Financial Services Practus partners, including Bob Elwood and Karen Aspinall.
When regulatory changes in 2019 created new possibilities for actively managed ETFs (Exchange Traded Funds), Bob and the Practus Financial Services team saw more than a compliance update; they saw an opportunity to innovate. What followed was the launch of the first successful mutual fund-to-ETF conversion, setting a precedent for the industry and opening the door for a wave of similar conversions, including many conversions that employ an innovative structure under “Section 351,” which allows lead investors to contribute a portfolio of securities to the new ETF on a tax-free basis.
Since then, the Practus Financial Services team has handled over 100 conversions, representing over $20 billion in assets… and counting. They’ve built a reputation as one of the country’s top law firms for ETF conversions by doing what Practus does best: breaking new ground with precision, collaboration, creativity, and agility.
These conversions aren’t just procedural. They involve tax strategy, regulatory navigation, and deep coordination across every corner of a fund’s ecosystem. Whether it’s choosing the right conversion structure (C vs. F Reorganizations), addressing ERISA implications, guiding boards through disclosure requirements, or designing seamless solutions for direct shareholders, Bob, Karen, and the team have helped clients solve the kinds of problems that no one had tackled — because no one had done it before.
But it’s not just about checking boxes. As Bob puts it, these transactions are about delivering better outcomes for investors. Lower fees. Fewer tax consequences. Intraday liquidity. Real-time pricing.
ETF conversions aren’t a trend: they’re a smarter, more modern way to meet the needs of today’s investors.
Karen, who chairs the Financial Services practice group and was recently shortlisted for Independent Counsel of the Year at the 2024 With Intelligence ETF Awards, brings the kind of forward-thinking leadership that makes innovation scalable. From launching new investment funds (up to 150 a year) to overseeing the details of groundbreaking ETF launches, she’s known for delivering results along with innovative solutions.
Together, the Practus partners continue to build on the foundation they helped create. As new firms explore conversions and investors demand smarter structures, the Practus ETF team continues to lead the way.
Seven years in, one thing is clear: Practus isn’t simply following the direction of the industry. It’s defining it.
