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F/m Investments has launched a mutual fund share class of its flagship ETF, TBIL, creating a dual-share class structure that lets investors hold the same underlying 3-month Treasury bill strategy across brokerage and retirement accounts.

For years, investors have faced a structural limitation: the same investment strategy often came in different wrappers depending on account type, meaning an ETF in a brokerage account and a mutual fund in a retirement plan could hold similar assets but behave differently in terms of performance tracking, fees and reconciliation. Now, the mutual fund version, TBFMX, is available for retirement accounts, while TBIL continues operating as an ETF through brokerage platforms.

"We built this with a simple premise: the wrapper shouldn't dictate the investment," said Alexander Morris, CEO of F/m Investments. "Investors have had to choose between the tax efficiency and liquidity of an ETF or the familiarity and platform access of a mutual fund. Dual share classes eliminate that tradeoff."

The structure is the first of its kind launched under a specific SEC exemption since Vanguard introduced dual share classes in 2001. Vanguard held a patent on the approach for more than two decades; once that patent expired, it opened the door for other firms to pursue similar structures.

TBIL is F/m's largest ETF, with $6.4 billion in net assets. Financial advisors who use TBIL for brokerage clients can now offer the same strategy in retirement accounts without managing two separate products or reconciling performance differences between them. TBFMX is currently accepting new investors as F/m works to expand its availability across investment platforms.

F/m was founded in 2018 and manages approximately $19 billion in assets, with a focus on fixed income. The firm's U.S. Benchmark Series of ETFs track different types of Treasury investments.

The RBB Fund, Inc., F/m's multi-series trust, helped move the share class from regulatory approval to its active state. U.S. Bank Global Fund Services provided administrative support.

"This is a proof of concept for the broader industry," said Aisha Hunt, founder and principal of Kelley Hunt, PLLC, a regulatory advisor to F/m. "The dual share class structure didn't require new rules or novel interpretations. It works within the existing ETF framework and the Investment Company Act of 1940. That's what makes it durable, and what makes it a model other issuers can follow."

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