From the Editor...
There are a lot of similarities among mutual fund boards—in how they function, their policies and procedures, how they compensate independent directors—but there also are meaningful differences that allow them to learn from one another. One board that is doing things differently is the one overseeing Diamond Hill Funds. This board is all independent, three-quarters female, has term limits, and requires members to invest all of their compensation in the funds they oversee. D'Ray Moore Rice, chair of Diamond Hill Funds, spoke with us recently about why the board approaches its mandate the way it does and what she sees as the resulting benefits to shareholders. Don't miss this latest A Seat at the Table.
For a bigger picture look at how boards are compensating directors, be sure to take a look at our story on Management Practice Inc.'s 25th annual Survey of Mutual Fund Director/Trustee Compensation and Governance Practices. The survey results paint a picture of what's happening among boards in all sectors of the market, from compensation practices to board composition to governance.
There's been a lot of talk recently about the relationship between the mutual fund board and the fund chief compliance officer; regulators are talking about it as they look to review director duties, and directors and CCOs are talking about it to ensure there is no miscommunication about who is/should be responsible for what. Our latest 10 Things is actually 20 things, and it's all about how independent directors can help clarify and strengthen their ties with the CCO.
Another topic of conversation lately is the interval fund. We called on Dave Carson at Ultimus Fund Solutions to explain what they are and why mutual fund trustees should get to know them. It's a great primer on an interesting investment product, so make sure to check out our latest Viewpoints.
It was great seeing folks last week at the ICI's General Membership Meeting. We do so much of our work over the phone and on email that having actual face-to-face conversations is a real treat. Sorry if we missed you, but we'll hope to catch up next time.
Hillary Jackson, founding editor