Last Ethics question (#4)

I am CIO of a pooled group of mutual funds. The pooled fund has a board of directors, which has several independent members to protect the integrity of the fund and bring relevant outside experience to the table. I brought to the next board meeting a series of asset valuation policies, so that i can further cooperate with the AMC. who should evaluate and approve the policy? 1. board of directors 2. independent directors 3. outside independent third party

All of them can

  1. the independent directors
  1. valuation needs to be reviewed by independent third party companies

ahh I think 2 and 3 can and 1 cannot.



and the answer is 2, independent directors. for NON-POOLED funds, answer would be 3. don’t ask me why. this is a tough one. (and likely to be on the exam therefore)

good questions Krock

can someone explain the difference between pooled and non-pooled mutual funds please?

perhaps McLeod can chime in…my guess is Fidelity is a pooled group of funds. whereas the hedge fund i work for is a non-pooled (singular) fund.