Trust for Professional Managers to Convert Fund into ETF

Trust for Professional Managers has announced plans to convert its Performance Trust Municipal Bond Fund into an exchange-traded fund (ETF), marking a significant shift in its investment strategy. This reorganization is expected to enhance tax efficiency and reduce overall expenses for shareholders, aligning with the growing trend in the investment industry towards ETF structures.

The conversion will take place under an Agreement and Plan of Reorganization, with the target date set for January 29, 2027. This change is designed to provide shareholders with shares of the new Performance Trust Municipal Bond ETF, which will maintain the same investment objectives and strategies as the current mutual fund.

Background

Trust for Professional Managers, incorporated in Delaware, is an investment company that manages various funds, including the Performance Trust Municipal Bond Fund. The company operates under the SEC regulations and has been active in the investment space for years. The recent filing, dated October 20, 2026, indicates a strategic move to adapt to the evolving market landscape.

What the Filing Says

The SEC filing states, "The Target Fund will be converted into an ETF through the reorganization of the Target Fund into the Performance Trust Municipal Bond ETF." This change is expected to be structured as a tax-free reorganization under the U.S. Internal Revenue Code, allowing shareholders to exchange their shares without recognizing a taxable gain.

Impact

This reorganization will primarily affect shareholders of the Performance Trust Municipal Bond Fund, who will automatically become shareholders of the new ETF if they hold their shares in a brokerage account that can accommodate ETF transactions. The move is anticipated to enhance shareholder value through improved efficiency, lower expenses, and greater tax benefits.

What's Next

The filing does not say what happens next. However, shareholders are encouraged to review the enclosed Information Statement/Prospectus for further details on the mechanics of the conversion and the expected benefits of the reorganization.