All Reports & Bulletins
The Challenges of Declining Fund Assets: Independent Directorsí Responsibility at Contract Renewal Print E-mail
Contract Committee
Written by C. Meyrick Payne and Sara D. Yerkey, MPI - AS ORIGINALLY PUBLISHED IN FUND DIRECTIONS, MARCH 2012   
     Mutual funds with steadily increasing assets are generally positive indicators for fund directors and shareholders alike.   However, declining assets in a fund are also a possibility. The purpose of this article is to highlight some of a fund director’s responsibilities, particularly during the contract renewal process, when the asset base is shrinking.
The first order of business for the fund director is to assess the situation. The key analysis is to differentiate between market appreciation (or depreciation), investment performance, and fund inflows or outflows. This allows directors to determine if relatively poor investment performance, ineffective marketing, strategy popularity, or other drivers may be causing the decline. The second analysis is to understand if the declining asset base is confined to a few funds or if the impact is occurring throughout the fund family. Complex-wide shrinkage compounds the effect as there are fewer assets to spread the fixed expenses across and the marketing problems may be systemic.
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Advisory Fee Breakpoints: A New Look at the Data - February 2012 Print E-mail
Contract Committee
Written by Sara Yerkey, Management Practice Inc and Max Rottersman, FundAnalyze.com   
     What percentage of open-end mutual fund assets have advisory-fee breakpoints? The answer might surprise. Almost 40% of all fund assets provide economies of scale to their shareholders by including board-approved breakpoints in their fee structures.
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What Separates the Best CCOs from the Rest? Print E-mail
CCO Responsibilities & Compensation
Written by C. Meyrick Payne of Management Practice Inc. (MPI)   
     The passage of the Dodd-Frank Act in July 2010, along with regulators’ increased emphasis on risk management, is heightening the importance of having the right person in the chief compliance officer role.
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Defending Against Arbitrage Attacks on Closed-End Funds - September 2011 Print E-mail
Full Board
Written by C. Meyrick Payne and Jay Keeshan of Management Practice Inc.   
     Closed-end funds are often formed because they offer investors an opportunity to invest in a focused portfolio which meets their specific needs, usually with built-in leverage, potentially higher returns, and tax advantages. Often the investment focus of the fund is fashionable at the time it is launched. Theoretically the investor can get their money out by selling shares to another investor through one of the established stock exchanges.
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CCO Pay Holding Steady; Majority of CCOs are Lawyers Print E-mail
CCO Responsibilities & Compensation
Written by Jay Keeshan and Meyrick Payne, Management Practice Inc. (MPI)   

     MPI recently completed its sixth annual Survey of Mutual Fund Chief Compliance Officer Compensation and Organizational Practices. This bulletin summarizes the findings and is based on the submissions of 63 fund CCOs, representing funds with $3.4 trillion in assets.  65% of the participants were full-time employees and serve as CCO to both the fund and the advisor.

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