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
- the independent directors
- valuation needs to be reviewed by independent third party companies
ahh I think 2 and 3 can and 1 cannot.
1
3?
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.