Canadian Mutual Funds
Compensating Independent Directors of Canadian Mutual Funds Print E-mail
Written by C. Meyrick Payne, Management Practice Inc.   

This Management Practice Inc. (MPI) Bulletin summarizes the detailed findings of our first survey of Canadian Mutual Fund governance practices. This is based on a comprehensive review of the Annual Information Forms filed in the year 2000 by all Canadian Mutual Funds, together with confidential responses from the survey participants. The second edition of this survey for 2001 will also be based on AIFs and participant responses. It will be issued later this year.
Governance of mutual funds in Canada is a hodgepodge of oversight techniques that reflect differing provincial and federal tax, regulatory and legal requirements. In recent times some rationalization has occurred with a trend toward governance independent of the fund manager. This Bulletin explores this trend and summarizes the survey findings about compensation of independent trustees or directors.