Funds generally do not have their own employees, so they rely on service providers to manage their operations. In addition to the fund adviser, which manages the portfolio and may perform other services, these service providers can include: an administrator, custodian, fund accounting agent, principal underwriter, and transfer agent.
The fund board oversees the service providers as part of its general oversight responsibilities. The nature and extent of board involvement in overseeing service providers varies across the industry. Many boards are involved to some degree in the selection of service providers and engaged in ongoing oversight of the quality of services received by the fund from its providers.