Investment (Portfolio) Performance

Investment performance oversight is among a fund board’s key responsibilities. In addition to overseeing the adviser’s management of the fund consistent with the fund’s prospectus and other disclosures, this responsibility includes overseeing how well the adviser is investing and managing the portfolio, consistent with those disclosures. Successful performance is the shared goal of a fund’s shareholders, adviser, and board. The adviser manages the fund’s portfolio investments as part of its responsibilities under the advisory contract with the fund. The fund’s board oversees the adviser’s management of the portfolio pursuant to the directors’ fiduciary duties to the fund and their statutory responsibilities to annually review and approve continuation of the adviser’s contract with the fund under Section 15(c) of the Investment Company Act of 1940 (15(c) process).

Publications

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Paper

Investment Performance Oversight by Fund Boards (pdf)

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White Paper

Board Oversight of Exchange-Traded Funds (pdf)

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White Paper

Fund Board Oversight of Risk Management (pdf)

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Publication

Board Oversight of Target Retirement Date Funds

Target retirement date funds—also called lifecycle funds—are an important innovation in retirement...
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Paper

Board Oversight of Subadvisers (pdf)

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Paper

Board Oversight of Derivatives (pdf)

Regulatory Matters

IDC’s memos inform directors about important regulatory, legislative, and judicial developments. IDC also comments on proposals that could affect board responsibilities or shareholder interests. See below for recent comment letters and memos on selected topics.

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News Release

IDC Letter to SEC Highlights Proper Role of Fund Boards

IDC Letter to SEC Highlights Proper Role of Fund Boards Letter Outlines Approach to Limiting...
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Comment Letter

IDC Supplemental Comment Letter on Liquidity Risk Management and Funds' Use of Derivatives Proposals...

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Comment Letter

IDC Comment Letter on SEC Liquidity Risk Management Proposal (pdf)