NPF Investment Advisors to Launch the NPF Core Equity ETF (Exchange-Traded Fund) Using Innovative Section 351 Conversion Strategy

The 351 Conversion has the potential to deliver attractive tax-deferral benefits for eligible investors and provide enhanced portfolio flexibility

GRAND RAPIDS, Mich.--(BUSINESS WIRE)--NPF Investment Advisors, a Grand Rapids-based independent registered investment advisor and financial planning firm, announces plans to launch the NPF Core Equity Exchange Traded Fund (ETF). The ETF is expected to begin trading on January 20, 2026.

NPF plans to utilize the ETF to employ a Section 351 "in-kind" conversion strategy for eligible investors — allowing for the transfer of appreciated equities into an ETF structure without triggering immediate capital gains taxes.

This move marks a significant innovation in portfolio management and offers a modern solution for certain investors facing large, embedded gains, concentrated stock positions, or the limitations of traditional taxable stock accounts.

Section 351 Conversion Highlights:

• Asset Contribution: Eligible investors may contribute appreciated stock and ETFs in exchange for shares of the newly formed NPF ETF, subject to specific concentration and diversification requirements.
• Section 351 Treatment: As a tax-free reorganization, no capital gains are recognized at the time of contribution.
• ETF Benefits: The ETF structure allows ongoing tax efficiency, operational simplicity, and investor-friendly access to markets.

“For decades, NPF has managed client portfolios of individual stocks, but that often leads to large and unpredictable capital gains taxes,” said Chad Dutcher, Partner at NPF Investment Advisors. “Utilizing Section 351, we can contribute individual stocks and ETFs into a new ETF structure, preserving gains and delivering greater diversification and tax efficiency for investors.”

The NPF Core Equity ETF will follow the same time-tested investment philosophy that has guided NPF Investment Advisors since 1933. This actively managed ETF targets high-quality companies known for strong cash flows and reliable dividend growth. By blending stable, established businesses with growth companies, the ETF aims to deliver a balanced mix of income, dividend growth, and long-term capital appreciation — driven by NPF’s rigorous, in-house fundamental research.

While the launch of the NPF ETF was driven by the firm’s commitment to tax efficiency and a client-first philosophy, a Section 351 conversion opportunity is available to any investor holding highly appreciated positions in taxable accounts. Interested investors can visit www.npfinvest.com/etf for more information.

About NPF Investment Advisors

NPF Investment Advisors has been a trusted partner in West Michigan since 1933, offering intelligent, tax-efficient wealth management grounded in personal relationships and integrity. With a client-first approach, NPF empowers individuals and families to build lasting legacies through experienced guidance, tailored strategies, and proactive financial planning.

Disclosure

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. To obtain a prospectus containing this and other information, please call 1-800-748-0544. Read the prospectus carefully before you invest.

Investment Objective: provide total return from current income and long-term capital appreciation.

The information discussed herein is for informational purposes only and is not intended as investment advice or a recommendation to buy or sell any security, including ETFs. Investing in securities carries an inherent element of risk.

In-Kind Contribution Risk: At its launch, the Fund expects to acquire a material amount of assets through one or more in-kind contributions that are intended to qualify as tax- deferred transactions governed by Section 351 of the Internal revenue Code. If one or more of the in-kind contributions were to fail to qualify for tax-deferred treatment, then the Fund would not take a carryover tax basis in the applicable contributed assets and would not benefit from a tackled holding period in those assets. This could cause the Fund to incorrectly calculate and report to shareholders the amount of gain or loss recognized and/or the character of gain or loss (e.g., as long-term or short-term) on the subsequent disposition of such assets.

Tax Advisory Disclaimer: In compliance with IRS Circular 230, we wish to inform you that any tax advice contained in this communication was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any matters discussed herein. We strongly advise that you consult an independent tax advisor to assess your specific circumstances.

Investing in the Fund involves risk, including the possible loss of principal. The Fund is actively managed and may underperform its benchmark. Equity investments can be volatile and subject to sudden declines, and securities of small- and mid-cap companies may carry greater risk than those of larger, more established firms. Because the Fund may invest in foreign securities, including through ADRs, it is subject to risks related to currency fluctuations, less regulatory oversight, and political or economic events abroad. Shares of the Fund are bought and sold on an exchange and may trade at prices above or below the Fund’s net asset value, especially during periods of market stress. Limited history, sector concentration, or investing in a smaller number of issuers may increase volatility. Additional risks include cybersecurity threats, market disruptions, and other events that could adversely affect performance. Investors should consider these risks before investing.

ETF Risks. As an ETF, the Fund is exposed to the additional risks, including: (1) concentration risk associated with Authorized Participants, market makers, and liquidity providers; (2) costs risks associated with the frequent buying or selling of Fund shares; (3) market prices may differ than the Fund’s net asset value; and (4) liquidity risk due to a potential lack of trading volume.

The Fund is new and does not have an operating history.

The Fund is distributed by Paralel Distributors LLC. NPF Investment Advisors is not affiliated with Paralel.

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