Fund Directors: Board Oversight of Fixed-Income Funds
April 1, 2014
As the Federal Reserve contemplates the possible end of both quantitative easing and the period of near-zero interest rates, fund advisers, fund boards, and regulators are focused on risk management and disclosure practices of fixed-income funds. The SEC’s Division of Investment Management recently issued an IM Guidance Update on this subject, which suggested that fund boards consider discussing with fund advisers the steps they are taking in this area. This webinar was held April 1, 2014, and covered the role of fund boards in overseeing fixed-income funds and the risk management practices of fixed-income fund advisers.
Discussion topics included:
- Advisers’ risk management practices, including:
- Practices relating to liquidity risks during both normal and stressed environments
- Stress tests and/or scenario analyses, such as those involving interest rate hikes, widening spreads, price shocks to fixed-income products, increased volatility, and reduced liquidity
- Board reporting practices
- Risk disclosures to shareholders
- John P. Kavanaugh, Moderator
- Geoffrey Craddock
Executive Vice President and Chief Risk Officer
- Gregory Sheehan
Ropes & Gray LLP
- Todd L. Spillane
Chief Compliance Officer
Invesco Management Group, Inc.
The webinar was closed to the media.