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Purchase Mutual Fund Shares With Other Securities

Observant1
edited February 13 in Fund Discussions
I examined Artisan Partners Funds' recently released prospectus this evening.
The following section attracted my attention.

"By Purchases in Kind—You may, subject to Artisan Partners Funds’ approval, purchase Investor Shares, Advisor Shares or Institutional Shares of the Funds with securities that are eligible for purchase by the Fund (consistent with the Fund’s investment process, goal and philosophy) and that have values that are readily ascertainable in accordance with the Artisan Partners’ valuation policies. Call Artisan Partners Funds at 800.344.1770 if you would like to purchase shares of the Funds with other securities."

Some fund companies utilize purchases in-kind internally for their mutual funds.
https://www.bogleheads.org/blog/2021/10/26/vanguard-bond-funds-in-kind-trading-and-cross-trades/

This is the first time I recall purchases in-kind being offered as an option for investors.
I may have overlooked similar statements while perusing numerous routinely captivating prospectuses.
Has anyone purchased mutual fund shares with other securities?
What are the advantages/disadvantages of this transaction type?

Comments

  • yogibearbullyogibearbull
    edited February 13
    I have seen that large redemptions can be in-kind (although few mutual funds do it), but not for purchases.
    I don't see any advantage for regular funds except saving a selling step and may be avoiding 1-2 days out of the market.
    But there are 351-ETFs that offer tax-advantages for doing this.
    Link https://ybbpersonalfinance.proboards.com/thread/762/351-exchange-etfs
  • a2z
    on using large appreciated stocks diversified in-kind into index-like vehicles :
    see:
    alpha architect , meb faber
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