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WEBINAR

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.

MATERIALS

HIGHLIGHTS

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

Panelists included:

  • John P. Kavanaugh, Moderator
    Independent Director
    MFS Funds
  • Geoffrey Craddock
    Executive Vice President and Chief Risk Officer
    OppenheimerFunds Inc.
  • Gregory Sheehan
    Partner
    Ropes & Gray LLP
  • Todd L. Spillane
    Chief Compliance Officer
    Invesco Management Group, Inc.

The webinar was closed to the media.