Investment Risk Oversight
To achieve investment returns, a fund must incur investment risks. The goal of investment risk management is to ensure that those risks are understood, intended, and compensated. A fund’s adviser manages investment risk as part of its portfolio and risk management responsibilities. The fund’s board oversees the adviser’s management of investment risk.
Investment risk management by the adviser involves both controlling risk by limiting certain risk exposures, and thus the size and probability of losses, as well as using a number of active investment techniques that seek to align the fund’s investments with its investment objectives, its risk profile, and the portfolio manager’s investment convictions.
Publications
Focus on Funds: Fund Boards Continue to Safeguard the Interests of Investors
Video: Risk Metrics
Investment Performance Oversight by Fund Boards (pdf)
Fund Board Oversight of Risk Management (pdf)
Webinars
IDC Webinar: Deeper Dive: Derivatives - Session 1: Implementing Investment Strategies Archive Recording
ICI CEO Eric Pan Named Chair of International Investment Funds Association
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.