Alert November 12, 2013

Independent Directors Council Issues Report on Performance Oversight by Fund Boards

The Independent Directors Council issued a report designed to assist fund directors in their oversight of registered fund performance.  The report discusses (a) how to understand the performance expectations for a fund based on asset class, investment process, benchmarks, risk profile, disclosures and other factors, (b) how to understand a fund adviser’s investment organization and processes for portfolio management and investment oversight, (c) how to review a fund’s performance on an ongoing basis through periodic reports and discussions with the adviser, and related governance and process issues; and (d) how to address performance issues, including possible remediation measures.  The report includes an appendix with suggested questions for addressing certain of the foregoing topics.