Lyrical U.S. Value Equity Fund Investor Class LYRBX

Lyrical Asset Management intends to convert its USD 1.3 billion Lyrical US Value Equity mutual fund into an exchange-traded fund in November 2026. The Board of Trustees has approved the reorganization, which does not require a fundholder vote. Many investors should find the conversion advantageous. The ETF’s expense ratio is expected to be 0.75%, which is less than the current mutual fund share classes (0.99% for the institutional share class; 1.24% for the investor and A class shares; and 1.99% for the C class shares). The ETF structure will allow for daily visibility into its holdings (versus monthly, after a delay, for the mutual fund). Because the strategy focuses on the liquid mid- and large-cap US market, the added transparency shouldn’t create issues around trade execution or hamper nimble maneuvering. The ETF format will provide greater tax efficiency, too. As a mutual fund, Lyrical US Value Equity is required to distribute its capital gains annually, and certain investors might have to pay taxes on them. ETFs typically realize far fewer capital gains, so they tend to have much smaller distributions, if any. Fundholders who invest directly through the firm should be aware that they must have (or open) a brokerage account that may hold ETF shares and transfer their mutual fund shares into the account before the conversion takes place. A brokerage account is necessary because, as the name indicates, ETFs trade on exchanges.