Core Viewpoint - The SEC is on the verge of approving dual share classes, allowing asset managers to add ETF share classes to existing mutual funds and vice versa, marking a significant development in the investment management industry [2][3]. Group 1: SEC Approval Process - The SEC has been working with Dimensional Fund Advisors, whose application has become a template for others, and the first exemption is expected to be approved soon [2]. - Aisha Hunt from Kelley Hunt law firm describes the impending approval as a "watershed moment" for the industry, with a clear path anticipated within 15 days [3]. Group 2: Implications for Asset Managers - The approval will enable asset managers to add share classes to funds, eliminating the need to manage separate versions of products, which is currently practiced by larger fund companies [3]. - This change presents a major opportunity for active mutual fund managers lacking a full range of ETFs, as sales trends favor index funds and ETFs [3]. Group 3: Operational Readiness - Dimensional Fund Advisors is preparing to launch as soon as operationally ready, acknowledging that investor custodial platforms must facilitate transactions between mutual fund shares and ETF shares [4]. - The readiness of custodial platforms will vary, impacting the timeline for fund companies to launch these new share classes [4]. Group 4: Application Amendments - Firms have made amendments to their applications to clarify fund board responsibilities regarding the addition of mutual fund or ETF share classes and necessary disclosures for investors [4]. - Recent amendments have focused on addressing differences in dividend schedules between mutual funds and ETFs [4].