Alert October 30, 2012

Independent Directors Council Issues Report on Board Oversight of Exchange-Traded Funds

The Independent Directors Council issued a report designed to assist fund directors in their oversight of exchange-traded funds (“ETFs”) and inform directors of fund complexes that invest in ETFs or may launch ETFs in the future.  The report provides a basic overview of ETFs and discusses the following topics: exemptive relief, design and investment objective, contractual relationships, trading of ETF shares, portfolio management and trading of underlying securities, and disclosure.