#United States #Portland #Investment Strategies #Matisse Capital #ETF Share Classes

Matisse Capital's Application for ETF Share Classes

Matisse Capital, a prominent investment management firm known for its specialized strategies related to closed-end funds (CEFs), recently announced a significant move in its operational strategy. On October 27, 2025, the firm filed an application with the U.S. Securities and Exchange Commission (SEC) seeking exemptive relief under the Investment Company Act of 1940. The aim? To introduce exchange-traded fund (ETF) share classes for its existing mutual fund offerings, which could revolutionize access to its investment strategies for a broader range of investors.

Background on Matisse Capital's Approach

Matisse Capital has established itself as a leader in identifying and capturing inefficiencies in the CEF marketplace, particularly focusing on price-to-NAV mismatches that can lead to profitable trading opportunities. The firm currently operates two notable open-end mutual funds: the Matisse Discounted Closed-End Fund Strategy (MDCEX) and the Matisse Discounted Bond CEF Strategy (MDFIX). Both funds aim to leverage systematic strategies that seek to capitalize on discount normalization and alpha generation.

Bryn Torkelson, President and Chief Investment Officer of Matisse Capital, expressed confidence in this initiative, highlighting its potential to provide shareholders with improved tax efficiency, greater trading flexibility, and broader access to investment strategies. "Filing this application marks an important milestone in our ongoing efforts to broaden investor access to our closed-end fund strategies," Torkelson stated.

The Benefits of ETF Share Classes

If the SEC grants approval for Matisse Capital's application, it would allow investors to utilize a dual structure—accessing Matisse's established strategies through both mutual funds and ETF formats. This innovative approach is expected to enhance portfolio liquidity and provide tax advantages that are often associated with ETF structures.

Investors could enjoy the flexibility to transition between mutual fund and ETF shares without the tax consequences typically associated with trading in most mutual funds. This is particularly appealing for investors looking to optimize their tax strategies while taking advantage of Matisse's extensive research and disciplined portfolio management practices.

Matisse's strategies are grounded in rigorous research and a long-term perspective on value investing. The integration of ETF share classes aligns perfectly with the firm’s commitment to transparency and providing differentiated investment solutions tailored for both institutions and individual investors.

The Industry Landscape

The movement toward ETFs in the investment management industry has been swift, with many firms recognizing the advantages these products offer in terms of efficiency and investor demand. Matisse Capital would join a select group of asset managers who have successfully pioneered ETF share class capabilities, which emphasizes their commitment to innovation within the asset management space.

As of September 30, 2025, Matisse Capital manages approximately $1.6 billion in investor assets, showcasing its ability to attract and maintain investor trust through its evidence-based investment solutions. The firm’s history of focused strategies targeting undervalued market segments further enhances its standing as a trusted investment partner.

Conclusion

In conclusion, Matisse Capital's application for ETF share classes signifies a crucial step towards enhancing investor access to innovative strategies in closed-end funds. With the potential approval from the SEC, Matisse is poised to provide flexible, tax-efficient investment options that could attract a diverse range of investors. As the firm continues to adapt to changing market demands, it embodies the evolving landscape of investment management by prioritizing transparency and strategic growth. Investors and industry participants alike will be watching closely to see how this application progresses and the potential impact it may have on the market.

For further details on Matisse Capital and its investment strategies, visit www.matissecap.com.