Investment fund management reports clients to get vital information regarding their investments in a standardized and easily accessible way. These reports provide the performance data in various ways (MTD) (QTD, MTD and YTD) and are usually accompanied with risk analysis data such as VaR and stress testing. Regulatory demands are forcing managers to publish their risk management processes in more detail than they have ever before.

Investors are keen in knowing how much they pay for their fund investment, and this is reflected in the increasing need for specific information on fund fees. Some funds define management fees in a narrow way and include only the costs that are related to choosing the right securities for their portfolio in this number. Other funds have “unified http://productsdataroom.com fees” which cover a variety of expenses, including records and administrative services as well as brokerage commissions and a 12b-1 fee.

Many funds make use of breakpoint agreements, whereby the management fee decreases over certain asset intervals, based on the total assets of the fund. Investors should know the amount of the management fee is at each interval to assess these contracts. The GAO suggests that the Commission demand that funds provide fee information per share at the class level as well as to disclose any fees paid out of the principal and not from the management fee.

The GAO also recommended that Investment Company Act requires that independent directors (directors who aren’t affiliated with a fund’s management) are at least a majority members of a board of a mutual fund. This is to ensure that board members who are independent are able to represent shareholders as well as the interests of fund shareholders.