
Fundamentals for Newer Directors 2014 (pdf)
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The latest edition of ICI’s flagship publication shares a wealth of research and data on trends in the investment company industry.
Explore expert resources, analysis, and opinions on key topics affecting the asset management industry.
Read ICI’s latest publications, press releases, statements, and blog posts.
See ICI’s upcoming and past events.
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The Emerging.
Stay informed of the policy priorities ICI champions on behalf of the asset management industry and individual investors.
Explore research from ICI’s experts on industry-related developments, trends, and policy issues.
Explore expert resources, analysis, and opinions on key topics affecting the asset management industry.
Read ICI’s latest publications, press releases, statements, and blog posts.
See ICI’s upcoming and past events.
Senior Director, Retirement & Investor Research
Economist, Retirement and Investor Research
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Adoption of this proposal would fundamentally alter the management, operation, and pricing of mutual funds, as well as how investors purchase and sell their shares. Among other things, the proposal requires mutual funds to adopt mandatory swing pricing and impose a “hard close” cut-off time on when investors can buy and sell their funds. The proposal also would impose new liquidity risk management requirements on both mutual funds and ETFs.
This proposal would fundamentally alter the management, operation, and pricing of mutual funds, as well as how investors purchase [1] and sell their shares. Among other things, the proposal requires mutual funds to adopt mandatory swing pricing and impose a “hard close” cut-off time on when investors can buy and sell their funds. The proposal also would impose new liquidity risk management requirements.
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Thsi proposal would fundamentally alter the management, operation, and pricing of mutual funds, as well as how investors purchase and sell their shares. Among other things, the [2] proposal requires mutual funds to adopt mandatory swing pricing and impose a “hard close” cut-off time on when investors can buy and sell their funds. The proposal also would impose new liquidity risk management requirements. [3]
Sources: Investment Company Institute, Federal ReserveTo do this, they must classify each portfolio investment into one of four liquidity “buckets” and amount of its portfolio in “highly liquid investments.”
The new SEC proposal would arbitrarily change those amounts based on an unproven theory that open-end funds contributed to sudden changes in market liquidity in March 2020.
By any measure, funds have managed liquidity and met redemptions successfully while pursuing their investment objectives and strategies.
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