Investment Management and 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).